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North Carolina’s Alcoholic Beverage Control System: Part 1

February 15, 2019 · Jon Sanders, John Locke Foundation

Did you know that North Carolina used to be the nation’s leader in locally owned and operated distilleries? It’s true. In 1904 the state had 745 registered distilleries, 540 of which were operating. And they were all outlawed, an entire industry destroyed, by a series of laws culminating in voters passing the first statewide prohibition in the South in 1908.

Here’s a signature state industry that has only just started coming back. They were legalized again in 1979, but the first one didn’t open until 2005.3 Now there are 57 distilleries in production in North Carolina.

In 1933, federal Prohibition came to an end when the 21st Amendment was ratified (without North Carolina’s help). North Carolina wanted to maintain tight control over liquor sales. A legislative study commission recommended government control over the liquor market out of distrust of private retailers, which led to the Alcohol Beverage Control Act of 1937. Its passage officially ended Prohibition in North Carolina and established North Carolina as a control state.

What that means for North Carolina is, the state determines which liquor products from which distilleries may be sold at which prices, owns the central liquor warehouse, and contracts out the management of the warehouse. North Carolina is one of 17 states with government control over the wholesale distribution of liquor, and one of only 13 states with government control over retail distribution.

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ncrma NC Retail Merchants @ncrma ·
7 Feb 2022

.@Andye123 joined @TimMoffitt, @stillnbarrel and @jonpsanders on a virtual panel hosted by @JohnLockeNC to discuss the modernization of NC's ABC system and whether NC should privatize the sale and distribution of liquor. https://bit.ly/3Jc0mNW #ncga #ncpol #freethespirits

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ncrma NC Retail Merchants @ncrma ·
23 Nov 2021

An excellent analysis by ⁦@CarolinaJournal⁩ of the NC ABC System, how NC got here & why the system needs to be fixed. Arcane N.C. ABC caters to college kids, problems drinkers, and the poor - #ncga #ncpol #freethespirits https://www.carolinajournal.com/opinion-article/arcane-n-c-abc-caters-to-college-kids-problems-drinkers-and-the-poor/

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sgteliv K9Star🐾 & Sarge🇺🇸 @sgteliv ·
3 Oct 2021

This place is built on Indian Burial Grounds.
#FreeTheSpirits

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julierobinsonnc Julie Robinson @julierobinsonnc ·
21 Sep 2021

After today’s surprise resignation…
Next step: WHO is interested in this **VERY important** NC ABC Commission appointment???🙏 @ChuckMcGrady @BrianTurnerNC @TimMoffitt @Andye123 @IsaVillaGarcia @DavidMeeker @stillnbarrel @HouserLobbyNC Dan Gurley, others?🤷‍♀️😃🥃 #freethespirits

Julie Robinson @JulieRobinsonNC

This👇is BIG #NCPOL news…NC’s ABC Chairman resigned today amid on-going warehouse & supply issues for customers at NC’s ABC stores.
Will this “change in leadership” be another important step to FINALLY modernize NC’s (woefully outdated) #liquor laws & regulatory structure??🙏🙏 https://twitter.com/stillnbarrel/status/1440029200690339842

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