New Mexico

New Mexico: Restaurants Are Discounting Drinks TOO MUCH

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In a feature piece on Applebee’s “Dollarita” (the chain restaurant’s famed $1 margarita), PUNCH notes that New Mexico actually forbids the restaurant from selling these cocktails for $1:

Consisting of an ounce and a quarter of tequila and nearly four ounces of Applebee’s house Margarita mix (the company uses an undisclosed proprietary formula), there’s nothing terribly unusual about the Dollarita—other than its price tag…

The patchwork of liquor laws in the U.S. does throw a bit of a wrench into the Applebee’s plan for Dollarita domination, though not as much as you might think. “It’s a big country with lots of laws, and we want to make sure we’re compliant,” says Kirk. “We work with many of the state liquor authorities to make sure this is the right thing to do.” In New York, for example, customers are limited to three drinks, and in New Mexico, Applebee’s cannot sell $1 drinks (though it can sell $2 ones). Despite this, Kirk says, “nearly 100 percent” of the locations do offer Dollaritas…

Read the whole piece here.

This is likely the result of a provision in the state code that forbids “the sale or delivery of alcoholic beverages by the drink for less than half the usual, customary, or established price for a drink of that type on the licensed premises.” The result? Sadness for New Mexicans.


Alcohol Producers Benefit From Being Able to Sell Each Other's Products

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Many states restrict the ability of craft alcohol producers to sell products from their competitors. While this may seem counterintuitive, many producers benefit from reciprocity laws, as the Seven Fifty Daily explains:

A few years after New Mexico’s reciprocity law was enacted, winegrowers and small brewers have enthusiastically embraced the legislation. Today, at more than 50 winery tasting rooms and brewery taprooms, producers are selling each other’s wares. So you can drink a frothy brew in a winery tasting room, or a glass of wine in a taproom. This liberalization of the sale of alcohol is giving small producers a leg up, with increased sales and revenue streams that extend beyond the tasting room.

New York led the charge for this type of legislation in 2012 with its farm producer license, which allows farm-based producers of all alcoholic beverages to sell beer, wine, cider, and spirits with a single license. The move was championed by New York governor Andrew Cuomo, and the economic impact for craft beverage producers in New York has been substantial, with more than 500 new craft businesses having opened since 2012. “New York has great agriculture,” says Jennifer Smith, who represents the New York Cider Association and the New York State Distillers Guild. “There’s incredible growth in job creation and crop utilization as a result of this legislation. This ties together expressions of place, jobs, and good old-fashioned economic gains.”

New Mexico’s reciprocity law, passed in 2015, allows all New Mexico producers of beer, as well as wine and cider producers who use at least 50 percent New Mexico–grown ingredients, may self-distribute and sell any other New Mexico–made beers, wines, and ciders from their tasting rooms. Chris Goblet, the executive director of New Mexico Wines, who chaired the economic development committee responsible for developing the legislation, says, “I just thought, Wouldn’t it be easy if a local manufacturer could sell to another local manufacturer? We could have true reciprocity.”...

Read the rest here.