Clackamas Grocery Outlet Warehouse v. OLCC

A retail location which sells alcoholic beverages for off-premises consumption may only store those items that it intends to sell at the same location.

Grocery Outlet (Grocery) petitioned for review of an order of the OLCC which 1) prohibited Grocery from storing and later delivering products to its 31 retail locations, and 2) did not allow the same location to hold licenses to act as a warehouse and retail location simultaneously. Grocery argued that OLCC erred in determining that its distribution system was not authorized. OLCC contended that under ORS 471.305, a single location cannot be licensed to store alcoholic beverages for retail sale elsewhere and at the same time conduct retail sales. The Court of Appeals held that Grocery could not store wine at its warehouse and subsequently deliver it for sale at its retail locations. Thus, OLCC did not err in determining that Grocery's business practice was unauthorized and then subsequently restricting its license to only be able to store wine that it intends to sell at that location. Affirmed.