How to quickly destroy your competition before it opens its doors
This lawsuit is lesson in how to defeat your competition before it opens its doors.
The law in Pennsylvania is that grocery stores cannot sell liquor, unless it is sold on the premises. In short, grocery stores cannot sell "take out beer". However, Wegman's successfully petitioned the State Liquor Control Board to grant it permission to sell liquor from its stores. Wegman’s argued that it would sell bear from the restaurants that are located within the store, thus complying with the liquor law.
Wegman’s is a growing, successful grocery store chain. Based on 2005 revenue, Wegman's is the 70th largest retailer in the United States, according to Forbes Magazine. Selling alcohol will probably increase its customer base dramatically. So, this recent liquor license is problem for area grocery stores.
Instead of dealing with Wegman’s individually, the group banned together and encouraged it trade association, Malt Beverage Distributors Association of Pennsylvania, to file a lawsuit, claiming the Liquor Board violated the law when it granted Wegman's license. If the association wins, Wegman’s is no longer competition for the distributors.
It's a good strategy that you, as a business owner, may want to employ later when a big chain enters your market.
McKee Law Office