Destination Categories, Channel Choice, and Beer Distribution Laws
AAEA members release new research in AJAE
The state of Maryland is currently considering a legislative proposal that would remove the ban on sales of beer and wine in grocery stores in 2025.
In the new article “Destination Categories, Channel Choice, and Beer Distribution Laws” published in the American Journal of Agricultural Economics (AJAE), Anna Malinovaskaya from Princeton University, Timothy Richards from Arizona State University and Bradley Rickard from Cornell University look into beer in grocery stores and how it might impact the overall grocery sales, specifically in Colorado.
The authors say, “Earlier research has studied laws that affect the retail availability of alcoholic beverages, but that work has largely focused on the economic impacts of deregulation on wine and liquor store owners. Our work instead looks to shed new light on how changes in these laws affect consumer behavior for other (food) products that will now be sold alongside alcoholic beverages in supermarkets.”
They continue, “Our results show that the introduction of beer into grocery stores in Colorado did increase total weekly sales at supermarkets in Colorado in 2019 and did lead to non-trivial increases in expenditures for some categories, notably those that are likely to be complementary to beer purchases.”
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ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes three journals, the Journal of the Agricultural and Applied Economics Association (an open access journal), the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit www.aaea.org.
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