Borun Bros. v. Department of Alcoholic Beverage Control

Since prior to 1935, Borun Bros., a corporation, has been a holder of a beer and wine wholesaler’s license and a beer and wine importer’s license. Since 1956, Thrifty Drug Stores, Inc., a corporation, has been a holder of off-sale general licenses and off-sale beer and wine licenses. In 1956, the intervener herein filed an accusation, with the Department of Alcoholic Beverage Control, against Borun Bros, and Thrifty Drug Stores charging in substance that: Borun Bros., in violation of section 25502 of the Business and Professions Code, was a wholly owned subsidiary of Thrifty Drug Stores and that the officers and directors of Borun Bros, held an ownership interest in Thrifty, the holder of an off-sale general license; and Borun Bros., in violation of section 23779 of the Business and Professions Code, had failed to actively and in good faith engage in the wholesale business under its wholesale beer and wine license and had sold to no retailer other than Thrifty Drug Stores.

After a hearing, the Department of Alcoholic Beverage *505 Control revoked Borun’s wholesale beer and wine license and its wine importer’s license. (No disciplinary action was taken regarding the Thrifty…