On June 26, 2019, the U.S. Supreme Court issued its opinion in Tennessee Wine & Spirits Retailers Association v. Thomas, 139 S.Ct. 2449 (2019) (Tennessee Retailers), a case that was much anticipated in the alcohol industry. Simply stated, this case addressed the constitutionality of a Tennessee state law that required applicants for state-issued retail package store liquor licenses to be two-year residents in the state before issuance of licenses and 10-year residents before renewal of licenses. (The residency requirements apply to shareholders, etc., of entities that apply for licenses. The state technically dropped the argument in favor of the 10-year residency requirement for renewals.)

Many questions were raised and discussed within the alcohol industry while this decision was pending, and in its wake: Will the Supreme Court firmly establish the constitutionality of state residency requirements for liquor license ownership? Will the court gut all state residency requirements? How far will the court go—will its opinion support the interstate shipping of alcohol by retailers? Will state physical presence requirements for retail package store licensees fall, as well, if state residency requirements fall? And, of course, will the much vaunted and much maligned three-tiered system of alcohol distribution in the United States survive the decision? The answers to these questions could have very real impacts on businesses selling alcohol, as well as on how consumers buy alcohol.