BOSTON, Mass. (State House News Service)–The retail side of the alcoholic beverage industry in Massachusetts is in a “pretty chaotic” place as corporate interests vie for greater control of the marketplace here while COVID-19 restrictions recede and businesses and consumers alike adjust to changes in the industry, the head of the Massachusetts Package Stores Association said Monday.
Rob Mellion told the Joint Committee on Consumer Protection and Professional Licensure that the 17 bills he wanted to discuss during Monday’s hearing were a demonstration of the upheaval in his industry. “But this 17 is part of about 100 bills that are being weighed before you throughout this legislative session. I have talked about, on a number of occasions I’ve explained this, that the motivation behind a lot of these bills is driven by a push by large corporate interests towards marketplace control, as well as the opportunity to do so. COVID-19 has provided an opportunity to do so,” he said. “It is in this context that we are working towards preventing further disruption, further securing of marketplace control by large corporate interests, for the benefit of all the small businesses in the state.”
Just before Mellion got his turn to offer testimony Monday, the committee heard from Edward Cooper, vice president for public affairs and community relations at Total Wine & More, a national package store chain that operates six locations around Massachusetts. Cooper focused his testimony on two bills that he said were “pro-consumer” — H 379 to allow retailer-backed coupons for alcohol and H 422 to allow package stores to open on Thanksgiving.
He said retailers have discretion over price adjustments on alcohol above the wholesale cost and that both wholesaler- and producer-backed product-specific coupons and rebates are allowed. Retailers in Massachusetts cannot issue their own coupons or rebates, but Cooper said H 379 filed by Rep. Ken Gordon would allow for coupons while maintaining the state’s prohibition on selling alcohol below cost.
“You may hear today that there are some alcohol and beverage retailers that stand opposed to providing customers with coupons and loyalty programs, and that’s certainly their prerogative. We hope as a matter of policy that the committee would support giving retailers that option to provide these benefits to consumers,” he told the committee. “Massachusetts consumers will be overwhelming winners on retailer-backed coupons. It allows retailers to differentiate on price and compete for customer loyalty. When retailers…
Read More: Flow of alcohol bills creating pool of industry tension