Costco Won't Sell You Alcohol In These 2 US States

Costco Wholesale Corporation, renowned for its bulk products and competitive pricing, faces unique challenges when it comes to selling alcohol in certain U.S. states. In particular, residents of Arkansas and Utah encounter restrictions when attempting to purchase alcoholic beverages at Costco locations within these states. The restrictions stem from state-specific liquor laws that impose stringent regulations on the sale and distribution of alcohol. In Arkansas, state laws mandate that alcohol can only be sold in dedicated liquor stores, prohibiting its sale within wholesale clubs like Costco. This legislative approach is designed to maintain control over alcohol distribution and ensure adherence to state regulations. As a result, Costco members in Arkansas find themselves unable to purchase alcohol from their local warehouses. Similarly, in Utah, the state's control over alcohol sales is more comprehensive. The Utah Department of Alcoholic Beverage Services regulates the sale of alcoholic beverages, necessitating that they are sold through state-operated liquor stores. This means that while Costco may provide a wide array of products, its Utah locations cannot include alcohol sales among their offerings. These state-specific regulations underscore the complexities that national retailers like Costco face as they navigate varying legal landscapes, highlighting the diverse approaches to alcohol control across the United States.
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Why PA and MD Costcos can't sell alcohol

Pennsylvania is classified as an Alcoholic Beverage Control (ABC) state, featuring some of the most stringent alcohol regulations in the United States. The distinction between open and control states dates back to the end of Prohibition in 1933, when the authority to manage alcohol sales was delegated to individual states. Open states permit private businesses to sell alcohol in accordance with state laws, while control states have local governments overseeing the sale and distribution of alcoholic beverages.

Prior to 2017, liquor and wine could only be purchased at state-owned stores in Pennsylvania, and beer was available through select distributors, but only in limited quantities. However, regulations have evolved since then; liquor remains exclusive to state-run stores, but beer and wine can now be sold in grocery stores that have obtained state-issued licenses. It appears that Costco has not yet acquired such a license.

Although Maryland is not classified as a control state, certain counties, like Montgomery County, have opted to regulate alcohol sales by permitting sales only in government-operated stores. Due to legislation enacted in 1978, grocery store chains statewide are generally prohibited from selling alcohol, with the exception of 20 stores that were grandfathered into the law. Costco is not included in this group. Residents of Maryland can purchase beer, wine, and liquor at independent private liquor stores, provided they are outside of the control counties.

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