Beverages

C-Stores Lose Cold-Beer Challenge in Indiana

Liquor stores’ stricter rules make varying treatment of retail channels legal, judge contends

INDIANAPOLIS -- Cold beer will continue to be sold only in licensed liquor stores in Indiana.

cold beer

The 7th Circuit Court of Appeals this week ruled against the Indiana Petroleum Marketers and Convenience Store Association in an appeal of state laws that limit convenience stores, gas stations and other retailers to selling warm beer only.

In a lawsuit that dates back to 2013, the association challenged the constitutionality of the laws based on "equal protection" and the state's permitting rules, which allow only liquor stores to sell cold beer, while other channels of retail cannot. The association argued, among other things, that the rules were not consistent and that "grocery and convenience stores have a better record of compliance with state alcohol laws than liquor stores."

Circuit Judge Diane Sykes, however, ruled that more restrictive regulations placed on liquor stores make the differing treatments legal.

"Package liquor stores are subject to stricter regulations designed to enhance the state’s ability to limit and control the distribution of alcohol," Sykes wrote. "For instance, no one under the age of 21 is  permitted on the premises of a package liquor store. Sales clerks must be at least 21 years old. Hours and days of operation are restricted."

While the ruling shut the door on the strategy of overturning the law based on constitutionality, Sykes did leave the door open for another avenue.

"The association’s policy arguments for allowing cold-beer sales by grocery and convenience stores are matters for the Indiana legislature, not the federal judiciary,” Sykes wrote.

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