Wal-Mart Fights To Sell Hard Liquor In Texas, U.S. Judge Agrees

HOUSTON, TX — Spirits are high at Wal-Mart after the giant retailer scored a huge win in a Texas court battle this week. A United States district judge ruled the state's package liquor license restrictions, some dating to the end of Prohibition, as discriminatory. Now, the Texas Package Stores Association, which has 2,500 members, said it will appeal.

Wal-Mart claims the state's law more than 80-years-old is unconstitutional, and U.S. District Judge Robert Pitman backed that claim in court on Tuesday. Wal-Mart, which already sells beer and wine in its Texas stores, cheered the ruling. Wal-Mart spokeswoman Anne Hatfield said the restrictions currently in place on liquor sales in Texas "prevented us from fully serving our customers."

"Texas is the only state in the nation that issues package store permits to privately owned corporations, but refuses to let publicly owned corporations participate in the retail liquor market," Hatfield said. "Texas is also the only state that gives certain favored businesses unlimited numbers of package store permits, but limits everyone else to just five permits.

"Walmart filed suit because these laws are unfair and hurt our customers."

Lance Lively, who leads the 2,500-member Texas Package Stores Association, called the ruling that would unravel the antiquated law "disappointing."

"The Texas Legislature put a system in place to ensure safe access to alcoholic beverages in Texas, and that system has worked for over 80 years," Lively said. "We will appeal the trial court's decision and continue to fight for family-owned liquor store owners against the world's largest corporate entities that seek to inflate their profits by upending sensible state laws that protect both consumers and small businesses."

Wal-Mart and other big box stores like Costco won't have the luxury of including liquor among other retail items in the box store as it'll be required to build separate buildings with their own entrances next to its existing stores.

However, Wal-Mart could build a large enough store to sell other retail items it carries in its big box store — think of snack foods, red plastic cups and other party items.

Chris Porter, the spokesman for the Texas Alcoholic Beverage Commission, said TABC will review the outcome with the state's attorney general's office.

Image: A bottle of Southern Comfort whiskey is displayed on a shelf at a liquor store on January 14, 2016 in San Anselmo, California. Brown-Forman Corp. announced plans to sell its iconic brand Southern Comfort whiskey to Louisiana-based Sazerac for $543.5 million. (Photo by Justin Sullivan/Getty Images)