Alcoholic beverage control state

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Map of Alcoholic Beverage Control States, current as of February 2006.

Alcoholic beverage control states, generally called control states, are those in the United States that have state monopoly over the wholesaling and/or retailing of some or all categories of alcoholic beverages, such as beer, wine, and distilled spirits.

Following repeal of national prohibition in the U.S. in 1933, some states decided to continue their own prohibition against the production, distribution, and sale of alcohol beverages within their borders. Other states decided to leave the issue to local jurisdictions, including counties and cities, a practice called local option.

Among those states that did not choose to maintain complete prohibition, some chose to establish government monopolies over the sale of alcohol beverages within their borders. Most of these states have an Alcoholic Beverage Control (ABC) board and run package stores called ABC stores.

Reasons for doing this vary; for example, the Utah Department of Alcoholic Beverage Control states that:

The purpose of control is to make liquor available to those adults who choose to drink responsibly - but not to promote the sale of liquor. By keeping liquor out of the private marketplace, no economic incentives are created to maximize sales, open more liquor stores or sell to underage persons. Instead, all policy incentives to promote moderation and to enforce existing liquor laws is [sic] enhanced. [1]

There are currently either 18 or 19 control and monopoly states in the U.S., depending on the definition used. (The term "control state" is popular but misleading in that all states control and regulate the sale of alcohol. In this sense, every state is a "control state," whereas only 18 are monopoly states.)

Use of the term "alcoholic beverage control" by a state does not make it a "control" (or monopoly) state. For example, Arkansas uses "Alcoholic Beverage Control" or "ABC" to refer to its state agencies that regulate alcohol sales; yet all alcohol sales (wholesale and retail) in those communities that allow it are by private firms. Though Arkansas (like most states) generally limits the number of retail outlets in an area, outlets within those limits are free to compete. Therefore, Arkansas is a local option state, but it is not a "control" (or monopoly) state.

Many "control" (or monopoly) states are members of the National Alcohol Beverage Control Association.

[edit] State listing

The 19 control or monopoly states as of 2005 are:

Alabama
Idaho (Maintains a monopoly over sales above greater than 16% ABV.)
Iowa (Does not operate retail outlets; maintains a monopoly over wholesaling of beverages greater than 6% ABV.)
Maine
Michigan (Does not operate retail outlets; maintains a monopoly over wholesaling of distilled spirits only.)
Mississippi
Montana
New Hampshire
North Carolina
Ohio
Oregon
Pennsylvania (In the process of opening retail outlets inside some supermarkets.[2]
Utah
Vermont
Virginia
Washington
West Virginia (Does not operate retail outlets; maintains a monopoly over wholesaling of distilled spirits only.)
Wyoming