Recently, the license of a liquor company whose stock had made a comeback after many years, was suspended due to alleged violation of child labour laws. The company went to court and got a stay and normal operations were resumed. The reason why this is important is because this throws a light on many risks which small players in the liquor industry face. Also, this has to be seen in light of the fact that success of one single brand has made few small cap liquor stocks do very well in the last one year. In a business which is controlled and taxed heavily and is exposed to political whims and fancy, it is probably better to own a set of stock than having exposure to one. Some of the large players who have multi-state operations are better placed than just a company which has exposure to just one state.
