Costco Won't Sell You Alcohol In These 2 US States

Costco's alcohol department has grown an esteemed reputation for offering high-quality liquors. Its top-shelf brands include the rare Blanton's Single Barrel Bourbon and fan-favorite Japanese whisky. There is also its private label, Kirkland Signature, of which many liquors are made by surprisingly renowned distillers (take the Kirkland XO Cognac, for instance). The bulk retailer has seen steady growth in their alcohol sales over recent years, from $2.3 billion in 2010 to over $5 billion in 2020, proving that Costco shoppers (and even those without memberships) appreciate the wide selection and regularly rotated offerings. 

However, not every consumer can take part in purchasing quality bargain wines and Kirkland craft beer because restrictions on selling alcohol in grocery stores vary depending on your state. While most states currently sell beer, wine, and liquor in their Costcos, others are only allowed to sell beer and wine. The most specific restriction is in Utah and Kansas where the big box retailer is only allowed to sell beer that's less than six percent alcohol by volume. But that's still less restrictive than Pennsylvania and Maryland, the only two states where Costco stores are not permitted to sell any alcohol at all.

Pennsylvania is known as an Alcoholic Beverage Control (ABC) state and has among the strictest alcohol restriction laws in the U.S. The existence of open vs. control states stems back to the abolishment of Prohibition in 1933 when the ability to control alcohol was handed to the states. While open states allow private businesses to sell alcohol in abidance with state laws, in control states, the local government regulates the sale and distribution of alcohol. 

Before 2017, liquor and wine were only sold in state-owned stores in Pennsylvania, and beer was sold by specific distributors, but only in limited amounts. However, laws have changed since then; liquor is still only sold in state-run stores, but beer and wine can now be in grocery stores provided they have received state-issued licenses. Presumably, Costco has yet to receive one. 

While Maryland is not considered a control state, some counties, such as Montgomery County, have elected to regulate the sale of alcohol by allowing it only to be sold in government-run stores. Statewide, due to legislation passed in 1978, grocery store chains are not allowed to sell alcohol, except for 20 stores that were grandfathered into the state law. Costco is not among them. Marylanders can buy beer, wine, and liquor at freestanding private liquor stores as long as they are not in one of the control counties.