Theories of resale price maintenance (RPM) differ strongly on the pro-and anticompetitive effects of RPM. There are few tests of the welfare gains or losses from RPM in industry case studies. This paper tests RPM's welfare effects in the retail sale of distilled spirits in the US. Using regression analysis to estimate demand, comparing liquor store license values over time, and analyzing political contributions, the study finds that efficiency arguments for RPM are unsupported, with RPM leading to a reduction in distilled spirits consumption. Evidence shows substantial wealth transfers from consumers to retail liquor store owners due to RPM.