What it took to introduce competition in alcohol retailing

Bethesda Magazine profiles David Trone, whose Total Wine and More chain has helped introduce or reintroduce price-cutting, the negotiating of quantity discounts from vendors, and other advances in the business model for alcohol sales. Along the way, after infuriating competitors who were protected by existing state regulatory arrangements, Trone has been arrested three times, targeted by a Pennsylvania attorney general who was himself later sentenced to prison, subjected to grand jury proceedings at which allied merchants were urged to sever ties with him, and much more, which culminated in getting most of the charges thrown out and paying money to settle others. He spent millions on legal fees. After bad regulatory and legal experiences in Pennsylvania and New Jersey, Trone shifted to a new strategy, part of which has involved generous campaign contributions: “So generally what we do now when we enter a new state is hire a lobbyist, hire a great legal team, and go meet the regulators. It’s preemptive, 100 percent.” Now he’s running for Congress.

One Comment

  • We have a Total Wine a few miles from my house. I love it. It’s like a Toys-R-Us for adults.