Much of President Trump’s appeal with the populous is based on his America first vision. He invokes this vision when discussing tariffs on foreign products and exercising a non-interventionist foreign policy.

Unfortunately, when it comes to the liquor industry and opening up markets and enhancing competition, the President has abandoned an America first policy.

Last week the President revoked the Biden Administration’s Executive Order on Promoting Competition in the American Economy and specifically its report on “Competition in the Markets for Beer, Wine, and Spirits.”

The report focused on the present state of the liquor system, and the domination of large distributors and suppliers in the marketplace. The report identified many but not all the problems with the current liquor system. But mainly focused on the small amount of distributors that control a substantial share of the market.

Although each individual state controls their own liquor regulatory marketplace, the report correctly identified market problems.

As a President that has persuaded universities to change DEI policies, and persuaded countries to change trade deals, he has the power to persuade states to fix a system that hurts small American wineries, breweries, and distillers.

Unfortunately, by allowing the status quo to exist, President Trump is putting American producers last. According to a study done by the Craft Winery Association, the present three-tier model serves mainly foreign interests, and without market reforms the domestic producers will fall further behind. To illustrate how staggering the numbers are:

  • Wine.com, the largest online wine retailer in the United States, 70% of their wines are from outside the US.
  • Proof, by Southern Glazers, 60% of their online SKUs are from outside the US.
  • Total Wine & More, America’s Wine Superstore®, 56.5% of their online SKUs are from outside the US.[1]

These numbers reflect a wholesaler preference for favoring foreign goods over domestic goods. French and Italian wines are dominant in the marketplace and a closed system favors them. It is very difficult for a U.S. producer to find distribution for their products when they are fighting the wholesalers’ preference for foreign goods.

In the end, President Trump missed an opportunity to raise this issue and help reform a broken system, instead his actions put American liquor producers last instead of first.

[1] https://craftwine.org/imported-wines-are-taking-over-the-american-market/?utm_source=substack&utm_medium=email