Issue 152 Postal Booze August 28, 2013

As the post office is running out of money, they are looking for creative solutions to gaining revenue. This idea was brought to my attention via the Huffington post from CNBC ("U.S. Postal Service Alcohol Delivery Idea Criticized by Merchants").

The idea: The premise is simple, let the post office be able to deliver alcohol and other spirits via the mail. It is a sound idea that I endorse completely. U.S. Postmaster General Patrick Donahoe wants the post office to be able to ship cases of 2, 4, or 6 bottles of booze at a flat rate price. Upon delivery it would have to be signed for by a person over the age of 21 (as proposed in a bill by the U.S. Senate).

Benefits: Money is to be made from this idea. For one, it allows the post office to finally be able to mail alcohol which it was originally banned from doing (they asked people to cover any labels or logos that pertain to alcohol if they reuse a box of spirits). As it stands now the post office lost $740 million in the third quarter of 2013. However, this may help make up for their losses and fund the retirement and health pensions that have become so burdensome to its business.

Consumers are also helped by this as they now have the option to mail beer, wine and others to their friends and neighbors across the entire continental U.S. Let us face it, America likes its spirits and having the option (especially during holiday season) would be worth it to consumers and some sellers. Likewise brewers and wineries would gain the ability to ship their product throughout the U.S. and thus bump up sales. It gives small brewers a chance to be recognized beyond their town boarders, and wineries the chance to attract more people to their brand. Basically you can have your favorite wine shipped directly to your house from the winery rather than go to the store only to find out they do not sell that particular brand. Flexibility becomes key which allows people the freedom of choice (in their glass that is). Many craft brewers already ship through licensed distributors, but this allows them to cut out the middle man.

Problems: Even though it can be done, there is one big problem. State and local laws have to be complied with. A dry county (a district where the sale of alcohol is prohibited to patrons) may prohibit mail order booze. State laws may interfere with times of delivery, or even the type and amount of alcohol that may be mailed and delivered at a given time. Also, it may not be worth the cost to some brewers who may need to hire extra staff just to pack up the boxes and maintain order just to mail the booze in the first place. Beer is "heavy, fragile and perishable" so shipping may actually become a nightmare. Let us also not forget that local liquor stores don't like the idea of mail order booze cutting into their bottom line as it adds more competition. Of course State and local laws may try to protect those local stores from losing money as well.

Conclusion: The Colorado based Brewers Association, which represents 1,797 U.S. craft and larger beer makers has said that certain small brewers with "specialty beers would have an interests in the USPS option." So the idea does have traction and as such will generate revenue for all involved. I can imagine battles in court however over the legality of dry counties and similar laws which may infringe on "interstate commerce." All I can say is that freedom of choice is essential. As such the freedom to buy and sell goods must have no restrictions (excluding prohibited items) to help maintain that freedom. Therefore as a libertarian, I see this as a step in the right direction for the country. Yes I do understand that much of the domestic violence and spousal abuse is due to alcohol and that teens may drive while under the influence, but that is all about personal responsibility. Domestic violence would happen with alcohol regardless and teens driving while intoxicated also will not change as far as I can see. I also endorse reducing the age restrictions on the purchase of alcohol as it has been shown that the younger you are exposed to spirits in general, the less likely you are to drive intoxicated, or drink in excess. So let us loosen up the system and mail some booze.