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  1. #1
    Apprentice
    Join Date
    Mar 2013
    Location
    Louisville, Kentuckiana
    Posts
    47

    The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    So I've had it in my mind for a while now to start an online e-commerce business selling bourbon. I'm located here in Louisville and I know I'd be able to have first pick of the bourbons as the became available. While there are many existing online sources for bourbon, there is not yet a site that specializes it in (or if there is, they aren't on the first page of Google results and that's all that matters).

    I figured this would be straightforward, as I already know that The Party Source (https://www.thepartysource.com/) is based in Kentucky and ships liquor to all states that allow it. So I contacted the KY ABC board and inquired as to what license I would need to have in order to do that. They responded that it's not legal whatsoever for a public retail store to advertise or ship liquor from Kentucky no matter where it was going. This is according to state law KRS 244.350.

    What? So Party Source can do it and they just look the other way? I'm trying to do a business very similar to theirs but just focusing on a particular niche. Given that the law says it's not possible, yet it is, means something's not right here...
    Last edited by LiveFromLou; 04-24-2013 at 12:55.

  2. #2

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    Quote Originally Posted by LiveFromLou View Post
    So I've had it in my mind for a while now to start an online e-commerce business selling bourbon. I'm located here in Louisville and I know I'd be able to have first pick of the bourbons as the became available. While there are many existing online sources for bourbon, there is not yet a site that specializes it in (or if there is, they aren't on the first page of Google results and that's all that matters).

    I figured this would be straightforward, as I already know that The Party Source (https://www.thepartysource.com/) is based in Kentucky and ships liquor to all states that allow it. So I contacted the KY ABC board and inquired as to what license I would need to have in order to do that. They responded that it's not legal whatsoever for a public retail store to advertise or ship liquor from Kentucky no matter where it was going. This is according to state law KRS 244.350.

    What? So Party Source can do it and they just look the other way? I'm trying to do a business very similar to theirs but just focusing on a particular niche. Given that the law says it's not possible, yet it is, means something's not right here...
    The guy that owns TPS has always been known to push the boundaries of the laws here in Kentucky. They started online sales under a different ABC administrator. You might be getting info based on the new administrators opinion.

  3. #3
    Guru
    Join Date
    Sep 2004
    Location
    Jackson, MS
    Posts
    10,608

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    Get the name of their lawyer and hire him.

  4. #4
    Virtuoso
    Join Date
    Apr 2007
    Location
    Los Angeles, CA
    Posts
    1,135

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    According to the Party Source, they don't ship. They transact sales in KY. If you wish to have someone, say FedEx, pick up the booze for you, that person is your agent.

    See the first paragraph of this link: https://www.thepartysource.com/express/shopShipInfo.php

  5. #5
    Connoisseur
    Join Date
    Mar 2013
    Location
    Central Florida
    Posts
    562

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    I'm not a lawyer, just an English professor, but the language there is pretty clear.

    you authorize us to have your alcohol beverages or other purchases shipped on your behalf by a common carrier for delivery as requested by you. You understand that this carrier is acting as your agent as the owner of the alcohol beverages or other products.
    He made himself another drink and thought how much better the Perrier was than anything else you could put in whisky... Hemingway

  6. #6
    Apprentice
    Join Date
    Mar 2013
    Location
    Louisville, Kentuckiana
    Posts
    47

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    So, it sounds legally dubious at best. If their legal disclaimer actually does hold water, then they are shifting the blame from themselves to either FedEx or the recipient. I imagine FedEx is ignorant of the fact that they are party to breaking KY law.

  7. #7
    Virtuoso
    Join Date
    Apr 2011
    Location
    Chicago 'burbs
    Posts
    1,016

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    Quote Originally Posted by LiveFromLou View Post
    So I've had it in my mind for a while now to start an online e-commerce business selling bourbon. I'm located here in Louisville and I know I'd be able to have first pick of the bourbons as the became available.
    First pick of bourbons available where? Available to retail from the distributor or available at retail?
    "A man comes from the dust and in the dust he will end-- In the meantime it is good to drink whiskey."
    -->WhiskeyWonka<--

  8. #8
    Advanced Taster
    Join Date
    Feb 2013
    Location
    Capital City of the South
    Posts
    195

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    TPS... wow thats some insane shipping charges. Have never bought from there but was about to jump on the AAA 10yr to try it out since that seems nonexistent outside of KY, but shipping was more than the bottle. I'd have to be making a massive purchase for that to ever work out.

    As for the legality though, Im no lawyer but it makes sense. They sell it to you, then you can have someone pick it up for you, in this case Fedex. Skirting the spirit of the law a bit, but the law is terrible anyway, so cheers to them.

  9. #9
    Connoisseur
    Join Date
    Mar 2013
    Location
    Central Florida
    Posts
    562

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    Quote Originally Posted by LiveFromLou View Post
    So, it sounds legally dubious at best. If their legal disclaimer actually does hold water, then they are shifting the blame from themselves to either FedEx or the recipient. I imagine FedEx is ignorant of the fact that they are party to breaking KY law.
    According to the language on their site, they do not ship, they "transfer ownership" to someone else who ships.
    He made himself another drink and thought how much better the Perrier was than anything else you could put in whisky... Hemingway

  10. #10
    Disciple
    Join Date
    Apr 2010
    Location
    Wisconsin
    Posts
    1,523

    Re: The Woes of a Liquor Entrepreneur: Or why liquor laws suck hard.

    I was wondering about that statement. Producers and wholesalers don't allow cherry picking, so you'd be at the back of the line for allocated products.

 

 

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