Detroit Free Press investigates Michigan wholesalers

Modern Brewery Age, Feb 14, 2005

The Detroit Free Press is publishing a series of investigative articles on Michigan beer wholesalers that have been raising some hackles in the beer industry.

A lead paragraph of the most recent article began: "Michigan wholesalers control the distribution of nearly every drop of beer and wine in the state. They're protected by law from competition, which helps them keep prices higher than neighboring states. And they're spending a lot of money to keep it that way."

The story said that the Michigan Beer and Wine Wholesalers Association spends hundreds of thousands of dollars a year on trips, meals and other perks for lawmakers. In addition, the wholesalers' political action committee has donated more than $2 million to state politicians since 1997, making it one of the top 10 PACs in Michigan state.

Of the 148 people elected to the state House and Senate in 2002, the Free Press said all but nine received money from the wholesalers.

Mike Lashbrook, president of the Beer & Wine Wholesalers Association, responded in the article, saying that the association does nothing illegal to protect its interests. "Everything we do, we do above board, with the required disclosure--by the rules," Lashbrook said.

The Free Press reported that since 2001, the Michigan Beer & Wine wholesalers' association has spent at least $27,000 taking lawmakers to its annual winter convention in the Caribbean and other locations. The article noted that this practice is legal as long as the lawmaker provides something of value, such as giving a speech.