Wal-Mart sues Texas for rights to sell spirits

Wal-Mart is suing the State of Texas for the right to sell hard liquor at “package goods stores” adjacent to its supermarkets within the state.

Supermarket giant Wal-Mart is suing the State of Texas over “unconstitutional” laws that prohibit it from selling spirits

The US supermarket giant has filed a lawsuit in a federal court in Austin, which claims the Texas Alcoholic Beverage Code, which prohibits publicly traded companies like Wal-Mart from owning or operating package goods stores in Texas, are “unconstitutional” and limit consumer choice.

Wal-Mart currently sells beer and wine for off-premise consumption through its Walmart and Sam’s Club stores throughout the state, but its legal inability to obtain a package store permit forbids the group from selling spirits as well.

In addition, Wal-Mart is also contesting the rule that forbids companies from operating more than five package goods stores.

In the lawsuit filed with the federal court, Wal-Mart said: “Texas law irrationally prohibits companies and persons from owning or holding more than five package store permits. Texas law then unfairly grants an exception to the five-store limit to certain close family members.

“The exception available to close family members is known as ‘consolidation’ and is restricted to persons related within the first degree of consanguinity. Close family members are thus allowed to pool their package store permits into a single entity and collectively obtain an unlimited number of package store permits.”

As it stands, even if Wal-Mart were to be given a pass to sell spirits to consumers within Texas, state law requires it to “abandon” all 543 permits for selling beer and wine to do so.