State's largest liquor distributor slapped with $3 million fine for last year's delays

LANSING, Mich. - The attorney general has fined one of the state's liquor distributors a 'historic' fine for almost 100 violations committed by the company.

Attorney General Dana Nessel slapped a $3 million penalty on NWS Michigan LLC, which goes by Republic National Distributing Co. for 88 violations that contributed to a supply shortage of liquor and spirits in 2019.

The AG's office says the settlement is 'believed to be unprecedented in the liquor regulatory industry.'

“I appreciate the work of my assistant attorneys general and the Michigan Liquor Control Commission in reaching this significant settlement, which should serve as a strong reminder of accountability in the state’s liquor inventory and delivery system,” said Nessel in a statement. 

The violations stem from a multitude of issues cited by the Michigan Liquor Control Code, including failure to deliver liquor orders, failure to maintain an adequate physical plant, and provide records requested by the liquor control commission. The company is also placed on probation for a year and must submit monthly compliance reports.

Michigan's residents might recall grocery and liquor stores last Thanksgiving struggling to stock their shelves due to the shortage. The delay in orders financially hurt both businesses and the state.

Despite the acknowledgment of the problem from Michigan's largest liquor distributor, issues would bleed into the rest of the holiday season. 

"Distributors must abide by the rules or be subject to a fine,” said Michigan Liquor Control Commission Chair Pat Gagliardi, who looks forward to a stronger liquor distribution system, and to a better and more productive relationship with RNDC. “I am deeply appreciative of the assistance from the Attorney General’s office and all of the hard work of the MLCC staff in negotiating this agreement.”

Last year, the state recorded spirit sales topped $1.5 billion.