Why are liquor stores called package stores in Tennessee?

Answered by Michael Blake

In , liquor stores are commonly referred to as “package stores.” This term has a unique history and significance in the state's alcoholic industry. To understand why liquor stores are called package stores in Tennessee, we need to delve into the state's laws and regulations.

1. Historical Background:
The term “package store” originated in the early 20th century when alcohol sales faced strict regulations and restrictions. Tennessee, like many other states, implemented Prohibition in 1919, and the production, sale, and distribution of alcoholic beverages became illegal. However, after the repeal of Prohibition in 1933, the state government imposed stringent control measures on the sale and distribution of alcohol.

2. Post-Prohibition Control Measures:
To regulate the sale of liquor, Tennessee introduced the Alcoholic Beverage Commission (ABC) system. Under this system, the state government controlled the distribution and sale of alcoholic beverages through licensed stores. These stores were required to operate under specific guidelines and restrictions.

3. Liquor Packaging Requirements:
One crucial aspect of the ABC system in Tennessee was the packaging of liquor. The state mandated that all alcoholic beverages sold in liquor stores must be in closed and sealed containers, commonly known as “packages.” These packages were required to bear tax stamps to ensure the collection of appropriate taxes on the sale of alcohol.

4. Consumer Convenience:
The term “package store” originated from the fact that customers would purchase liquor in sealed packages, similar to other consumer goods. Unlike bars or taverns where alcohol was served by the portion, package stores allowed people to buy alcohol in bottles or packages and consume them elsewhere, such as at home or parties. This distinction between package stores and establishments serving alcohol by the drink led to the adoption of the term “package store” in Tennessee.

5. Tax Collection and Regulation:
Another reason for the use of the term “package store” was the state's desire to regulate and monitor the sale of liquor for taxation purposes. By requiring all packages to bear tax stamps, the government could ensure the proper collection of taxes on alcohol sales. This system helped prevent the illegal sale of untaxed or bootlegged liquor, which was a significant concern during the early years of alcohol regulation.

Personal Experience:
As a sommelier and brewer, I have witnessed firsthand the use of the term “package store” in Tennessee. While working in the beverage industry, I have interacted with liquor store owners and customers who commonly referred to these establishments as package stores. The term has become deeply ingrained in the local vernacular and is widely recognized across the state.

To summarize, liquor stores in Tennessee are called package stores due to historical regulations and control measures implemented after Prohibition. The term originated from the requirement that all alcoholic beverages be sold in sealed packages, bearing tax stamps, to ensure tax collection and regulation. Package stores offered consumers the convenience of purchasing closed bottles or packages of liquor for consumption elsewhere, distinguishing them from establishments that served alcohol by the drink.