In August of 2016, the Iowa Governor and State Legislature began a comprehensive review of the public health code pertaining to alcohol and beverage consumption (hereafter referred to as Chapter 123) as a means to, in tandem, support business development and generate more tax revenue.

Governor Terry Branstad, with the Iowa Alcoholic Beverages Division and the Iowa Economic Development Authority, lead a review of Iowa's alcohol laws with the goal to stimulate business development and create regulatory clarity. The previous health codes surrounding Chapter 123 were, as the Quad-City Times editorial board put it, “direct responses to the end of Prohibition”. Iowa had long hindered the efforts of microbreweries and distilleries to build roots in the state, while reflexively supporting tax breaks and benefits for larger beverage distributors (such as AB-InBev).

The board continues “Wine and beer tastings are big business now. Customers are right to be confused by Burchett's inability to offer something similar… But the legislation would neuter "the legitimacy of the system that regulates alcohol in Iowa," Iowa Wholesale Beer Distributors griped last week to Iowa Public Radio…. The "legitimacy" argument is bunk. This is about maintaining a market advantage, plain and simple. The state's three-tier liquor laws, segregating on-site consumption from wholesale distribution, are products of a bygone age filled with bygone fear mongering.”

The crux of this policy review was to assess the old system (state sponsored corpocracy) and see if the policy can be revamped to fit with more modern trends. This was to the chagrin of numerous involved parties, who feared uncertainty from a shifting market.

The health code was revised, thus welcoming an environment that was more cohesive with the needs of smaller liquor distributors, producers, and sellers. This had a definite impact on the retail side, shifting buying patterns and demographics from what was previously understood. With the liquor and alcohol marketing being as volatile as such a toxic commodity can be, it’ s important to remember that correlation doe not equal causation. In the Iowa Alcoholic Beverages Division 2016 year in review, administrator Steve Larson is quoted simply, “The alcoholic beverages industry is anything but static.”— ultimately, the data shown below will not provide a comprehensive review of a policy change, but instead reflect a reality around retail sales and the different material and geographical changes it has been subjected to.

Starting in September of 2016, the sharp drop off for all three liquor categories is the most apparent, with volume, dollar, and bottle sales all not recovering to previous levels throughout the remainder of that year.

The pre- and post- September 2016 sales breakouts show differing results, especially looking at liquor category.