Wednesday, January 30, 2008

Distributors
I was hoping Costco would win this case. They are a good company. they treat their employees and customers so well it upsets Wall Street.

A federal appeals court Tuesday dealt Costco Wholesale Corp. a setback on whether the warehouse club operator could lower prices of beer and wine for its customers.

The 9th U.S. Circuit Court of Appeals said the Washington State Liquor Control Board could prohibit discounts, ban central warehousing of beer and wine by retailers, require wholesale distributors to charge uniform prices to all retailers and require a 10 percent markup.

I do not like distributors. In Maryland, a brewery, vineyard or distillery can not sell directly to a bar or restaurant. They have to sell to a Distributor. Who marks up the price and sells it. I see no real need for this middle man. I guess Costco wanted to cut him out too.



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