Oregon Appeals Court Rules Against Central Warehousing

Dear Client:The Oregon court of appeals has sided with the state's liquor control board and Oregon Beer and Wine Distributors Association (OBWDA) in a lawsuit originally filed by Grocery Outlet. The issue at hand is central warehousing. For the past 20 years the discount retailer has stored its beer and wine at a central warehouse. In 1986 the OLCC acknowledged in a letter that Grocery Outlet's business model was permissible, noting, "Our understanding is that the [GOI] warehouse merely consigns,