Indiana Liquor Sales Landscape Gets Another Player

New liquor delivery service adds fuel to an already-heated battle over liquor sales in the state.

November 12, 2014

INDIANAPOLIS – A liquor store chain’s decision to offer alcohol-delivery via smartphone app has sparked the latest skirmish in a years-long squabble over alcohol regulation in Indiana, according to a recent article in the Indianapolis Business Journal (IBJ).

In October, local liquor retailer Big Red Liquors unveiled its partnership with Boston-based startup Drizly, making booze available by simply tapping a touch screen and waiting for its arrival. The move has inspired complaints from other alcohol retailers, including grocery and convenience store owners who have long been embroiled in their own battle over cold beer sales, that the service could make it easier for minors to obtain alcohol.

State law already permits liquor stores to deliver alcohol, as long as the delivery is made by an employee who is licensed and trained by the state. Now, Big Red Liquors is attempting to alleviate fears related to the new delivery app by putting several safeguards in place, including ID verification through the app and again by delivery drivers. Drivers will not deliver products to minors or an environment where use by minors is likely (including college campuses).

However, grocery and convenience store officials aren’t convinced Big Red can police itself under the new service. Further, this new development is adding fuel to a long-simmering debate between liquor stores and grocery and convenience retailers, over cold beer and Sunday alcohol sales. In Indiana, grocery and convenience stores are allowed to sell only room-temperature beer, while liquor stores can sell it cold. The convenience and grocery stores challenged the law in federal court last year. In July, Judge Richard L. Young dismissed their case. It’s now pending on appeal.

According to the IBJ article, Grant Monahan, who represents the convenience, drug and grocery stores as president of the Indiana Retail Council, finds it “ironic” that Big Red is using the app to provide consumers more convenience while limiting their options to buy cold beer and alcohol on Sundays.

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