Indiana court rules against alcohol distributor’s affiliate

The Indiana Supreme Court has denied an affiliate company of the state’s largest beer and wine distributor the ability to distribute liquor.

The Indianapolis Business Journal and The Indianapolis Star report the court on Friday ruled against Monarch Beverage Co.’s affiliate Spirited Sales LLC.

Indiana is the only state in the U.S. that doesn’t allow wholesalers to distribute both beer and liquor. Spirited is a separate company, but the high court found that Monarch and E.F. Transit Inc., which owns Spirited, share the same five shareholders and aren’t separate enough.

Monarch previously went to court arguing that the state’s policy of separating beer and liquor wholesaling violates the Constitution’s Equal Protection Clause. The 7th U.S. Circuit Court of Appeals disagreed and ruled against Monarch on June 30.