Prohibition and Repeal: A Short History of the Wine Industry's Regulation in the United States*

Barbara C. Beliveau and M. Elizabeth Rouse

Journal of Wine Economics, 2010, vol. 5, issue 1, 53-68

Abstract: The United States wine industry has experienced tremendous growth in the past twenty-five years. The number of wineries in the United States has grown to almost 5000, located in all fifty states, and creating over a million full time jobs. Alcohol distribution laws that hinge on the Supreme Court's reconciliation of the Twenty-first Amendment and the Commerce Clause have significantly hindered the industry's ability to expand. Current interpretations of the 21st Amendment give states unprecedented freedom to regulate interstate commerce in alcoholic beverages. The resulting regulatory diversity presents problems both domestically and internationally. (JEL Classification: K2, L5, N4)

Date: 2010
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