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 state, Iowa, has eliminated its state retail monopoly of distilled spirits sales for off-premise consumption. In March 1987 all state 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.