To some people it sounds downright un-American, but a bill in the Nebraska Legislature would outlaw cheap beer.
State Sen. Russ Karpisek of Wilber testified Monday in favor of his proposal to prohibit grocery and liquor stores from selling beer and other liquor for less than its wholesale cost.
Karpisek said he fielded plenty of complaints from small grocers and liquor outlets last year after they noticed that some large supermarkets were selling cases of beer below cost.
The retail strategy is known as a "loss leader," in which a store will sell a product at less than its market value so that customers will be drawn into their business and buy other stuff — stuff that has a profit margin built in.
Karpisek and Hobe Rupe of the Nebraska Liquor Control Commission said selling alcohol at less than cost is a health issue because it can lead to overconsumption.
Karpisek said he also wanted to level the playing field for smaller retailers, who can't sell at a loss as easily as big corporations.
Representatives of Nebraska retailers and grocery stores testified against Legislative Bill 978, saying the "free market" ought to govern the price of beer.
"Government shouldn't dictate what our loss leaders are," said Kathy Siefken of the Nebraska Grocery Industry Association.
Siefken said the lowest beer price she could find was $1.50 a case below cost. She said she doubted if that was enough to prompt overconsumption.
Karpisek, who chairs the committee, said he knew he was treading on a "touchy" issue. The Legislature's General Affairs Committee took no action on the cheap beer bill after a public hearing, but the senator anticipated his bill wouldn't pass.
"I'm always happy to see the cheapest beer also," Karpisek said.
http://www.omaha.com/article/20120206/NEWS01/702079963
