Effects of the elimination of a state monopoly on distilled spirits' retail sales: a time-series analysis of Iowa

Since the end of prohibition in the USA, only one slate, Iowa, has eliminated its state retail monopoly of distilled spirits sales for off‐premise consumption. In March 1987 all slate retail stores were closed, and private establishments were licensed to sell distilled spirits. Interrupted time‐series analyses of apparent spirits consumption in Iowa, controlling for nationwide sales trends over the past two decades, identified a statistically significant 9.5% increase in spirits sales following the policy change. While there was a corresponding 13.7% decline in wine sales, and no change in beer sales, privatization of spirits retail sales yielded a net increase in total alcohol consumption in Iowa. No changes were found in spirits sales in states bordering Iowa.