When technology advances quickly it can overwhelm outdated laws and regulations. In turn, lawmakers often feel pressure to reform these laws to keep pace. Amazon's purchase of Whole Foods may just be an example of such a technological event for alcohol. Mark Fritz of Byzinga writes about what the Amazon-Whole Foods deal could mean for booze:
"What does a $4,944 bottle of Hennessy cognac have in common with a $7.49 bottle of Mogen David “Mad Dog 20/20” red, rotgut wine? Both can be delivered to your doorstep these days, and it’s dooming the local liquor store.
It’s a familiar story of online sales creating a brick-and-mortar disruption, albeit with a kick. A much bigger kick.
Jeff Bezos is angling to be your main source of booze.
The $13.7 billion purchase of Whole Foods Market by Amazon.com, Inc. AMZN 0.63% will only increase pressure on states that currently limit household purchases of online wine, beer and spirits, which nevertheless reached more than $600 million in sales last year.
Amazon’s move into groceries isn't just about groceries. It represents an attempt to break into an alcoholic beverage industry that's conservatively estimated at $350 billion in the United States alone..."
Read the whole article here.