Straight Up
Comparing What Costco's Liquor Initiative Promises to What It Actually Delivers
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On November 8, voters will be asked to change the way liquor is sold in Washington State. If approved, Initiative 1183 would close and sell off state-run liquor stores and allow large grocery stores to sell liquor beginning on June 1, 2012. In the most heavily funded political fight in the state this year—with a total of $9 million in spending expected over the next month—the opposing campaigns have very different messages about what the initiative would actually do.
The yes campaign, backed by Costco, promotes I-1183 as a cash cow for the state budget. The campaign says state revenue from additional taxes would rise while liquor prices would drop. All the while, we're told, consumption will remain flat.
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But the no campaign, Protect Our Communities, says people will drink more, drive drunk more, and witness a decline in spending on public safety. Oddly, this campaign is funded by the liquor industry.
Let's examine what this convoluted initiative really does, step by step.
HOW LIQUOR WOULD BE TAXED AND SOLD: Currently, the Washington State Liquor Control Board retains all rights to distributing and retailing hard liquor. If this initiative passes, 166 state-run liquor stores would close (163 family-run contract stores could remain open) and grocery stores with at least 10,000 square feet—about 1,400 of them—will begin stocking liquor. There may be more stores: I-1183 says the state “shall not deny” a liquor license to smaller stores if there is no other liquor retailer in a “trade area,” but it doesn’t define the size of a trade area. “It seems that that could mean that’s any place where there’s business activity,” says liquor board spokesman Brian Smith. Protect Our Communities says that could add another 929 convenience stores. Based on this new explosion of availability, the state’s Office of Financial Management estimates that Washington residents will be buying 8 percent more liquor in 2012 (as opposed to the 3 percent growth forecast under the state’s current system).
WOULD LIQUOR REALLY COST LESS? The price for a bottle of liquor would either remain unchanged or increase by up to 20 percent if this measure passes, according to estimates from the state’s Office of Financial Management, which accounts for taxes and markup at several stages between the distiller and drinker. But there is a silver lining: The initiative would generate between $216 to $253 million in new state revenue over a period of six years and between $186 million to $227 million for municipalities. However, the state’s figures are purely speculative—and there’s no better estimate. “The initiative will lead to lower liquor prices,” declared Kathryn Stenger for the Yes on 1183 Coalition when meeting with The Stranger. Asked repeatedly to back up that claim, Stenger never provided information.
PUBLIC OPINION: Public support for Costco’s liquor privatization scheme appears to be dropping. An Elway Poll found that only 50 percent of voters supported the measure in August—considered weak footing for an initiative—and that number dropped to 46 percent when the firm conducted another poll in September. Voters opposing the measure said they supported state control, were concerned about minors purchasing alcohol, and thought liquor would be more available.
WHO’S BUYING THE ADS: Two opposing donors have contributed more than 90 percent of the money to this fight. Costco and its “coalition” stand to profit handsomely from new rules that would allow only big retailers to manage their own distribution (such as grocery and retail giants that already have national distribution networks) and sell generic liquors (as Costco already does in California). Meanwhile, the motivations of the Wine & Spirits Wholesalers of America (WSWA)—which distributes more than 70 percent of all wine and liquor sold in the nation—are slightly less obvious. WSWA’s members would be required to pay a 10 percent tax on distribution over the first two years the law takes effect. Perhaps more threatening to the group: It would allow wineries to sell directly to retail stores and restaurants, cutting out distributors entirely. ![]()
Alcoholics and heavy drinkers will appreciate the increased availability of distilled alcohol. With more location choices, it will be easier to be an anonymous drinker.
Will it benefit the moderate drinker? Not much. The key is how often moderate drinkers go though a bottle of spirits. Many moderate drinkers don't even drink distilled alcohol. They drink wine, beer and fortified products which are readily available everywhere.
Will the measure benefit you?
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Based on the money pouring in to fight this bill, your state liquor stores are paying way to much for their inventory. Why would they do that when they've got such a large customer base? Why else would the Wine and Spirits Wholesalers of America be fighting this so hard?
Sorry to butt in on your business. I was on my way to the Savage Lovecast.
Why can't you find this stuff, and much more, in Washington State? Because the state stores have utterly no reason to give a flying fuck about people with specialty tastes. If this happened with coffee, the world would still be drinking Folger's.
This has nothing to do with Costco. The idea that it's a Costco law because they want it is a steaming load of horseshit. Not only will at least half a dozen chains be able to carry liquor after this passes, but we'll have the same sorts of specialty liquor merchants where I buy all of the things I mentioned above, enter our state.
#14 and the other scare mongers are lying. They are worried about their job security and nothing else. It's not our job to preserve a lazy, expensive monopoly so these people can remain employed.
That's simply false. Nothing will stop the specialty chains from moving here.
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Wrong. Costco has already said that they would charge nowhere near the 25% markup that's being bandied about. They would be closer to single digit percentages - roughly equal to the markup they do for everything else they sell. That alone would make it cheaper than today's state prices.
I don't dispute WA State's legal right to establish and protect a Soviet liquor monopoly here. I only ask you to tell the truth about all of this.
The idea that, because Costco wants to tear it down, they'll be the only beneficiary, is bullshit. There are at least half a dozen retail chains that can step right into the market: Costco, Fred Meyer, Safeway, Albertson's, QFC, Trader Joe's, Thriftway, Cash & Carry.
And we'll have new entrants: the liquor-only warehouses that you see in other states. Costco, by definition, doesn't carry a full line of anything, with the possible exception of meat. What they don't carry, someone else will.
The only reason we're seeing so many of these comments opposing 1183 is because the Soviet stores are unionized, and the clerks are scared shitless about losing their overpaid jobs.
I have worked in large and small private liquor stores in other states and can tell you that the larger specialty stores will only exist in larger cities, maybe 50k+ population. Otherwise, likely you'll have pretty restricted selection in small outlets and groceries, probably much poorer than the state stores I've been in. I do believe currently you can special order through state stores, although there may be a minimum case order.
Have you noticed that The Stranger is published in Seattle? It's a city, you dork. Oh, and there's an exemption to the 10,000 square foot rule for smaller towns. And people in those towns often drive to the cities for all kinds of things anyway.
Oh, and one of the best liquor stores I've been to was a small joint just south of the CA-OR border, in the middle of nowhere along U.S. 101.
I do believe currently you can special order through state stores, although there may be a minimum case order.
That's right, by the case. So if I want one bottle of 5-year-old Clynelish (at about $200 per), you'd require me to buy a dozen? How Soviet of you.
Even if I wanted to buy it by the case, I wouldn't have known about it. It's outrageous that we're somehow supposed to be required to do this in WA State because a bunch of Soviet liquor store clerks are afraid they'll be out on the street.
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The distributors have it easy and would much rather operate like the rest of businesses in the US and partner with fascist or communist governments, that makes it much easier on their paperwork and they have a captive audience and will not have to negotiate or prices.
I'm not sure of the motives from the distillers but it probably the same as the distributors.
And well labor, we all know it's about benefits.
There is "NO" beneficial function for this state or any to "operate" any stores of any kind, regulate all you want.
How many transplants have woken late of an Sunday, only to be reminded that the "state" liquor store closes at 5pm! Really!!!
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Costco has put a lot of money on the "yes" side, but they are only one of a bunch of retailers that will be ready to enter the market. The idea that they'll be any kind of monopoly is sheer bullshit.
QFC, Albertson's, Safeway, Cash & Carry, Whole Foods, Wal-Mart, Trader Joe's, and Thriftway have many stores that meet the requirements of the new law. New chains will be able to enter, too. That's how things work in most other states.
I've never seen Pappy's in a WA State store. Caol Ila? Not the ones I prefer. I get them either in CA or from friends who ship it in from the Midwest for me. Talisker? Just try finding a bottle of the 25-year-old in a WA State store.
Those of us who like the specialty booze simply cannot find it in Washington's Soviet-style liquor stores. Those stores have a monopoly, and monopolies are always about raising price and reducing quantity.
It'll be interesting to see what Costco winds up doing. I know that I've bought some great wines there from time to time. Maybe they'll wind up carrying some more obscure whiskies. If not, then I've got no doubt that we'll soon see a big liquor chain come in here and do it.
I don't work for the state. I am a fan of whiskey. You didnt answer my question, punk.
What happens to high and medium end whiskey and bourbon selection if you remove the state, who does try to carry a large variety, and turn it over to big box 10,000 distributors, who will be all about the Monarch and Crown. Nothing wrong with those, but I can just imagine one long row in Costco labelled "Whiskey" . I don't have to imagine it, its what they do in California.
On the other hand, California has laws that don't ace out small liquor distributors. But ours will.
So unless you want to address my question, you can shut your useless hole.
// not a state employee.
We don't have shortages in Wa State, we have variety. I have yet to see anyone explain how letting 10,000 foot stores who cater to big-box volume is going to carry niche brands. Neither side's addressed that yet.
For example, you say that Costco has one long row labeled "whisky" at its stores in California. If that's even true, so what? Roughly once a year, I stock up on bourbon and Scotch in California. I get the brands and versions unavailable in our Soviet-style monopoly.
Costco is just one player there, just as they'll be here. What matters is that, in states where there isn't a state-run monopoly, you have much better selection and lower prices. You can keep on lying your ass off to the contrary, but anyone who goes anywhere else knows this to be true.
You act like 10,000 square feet is huge. It's not. A typical Costco is upwards of 50,000 square feet. There are Wal-Marts that run well over 100,000 square feet. A big Bartell's or Walgreens meets the 10,000 square foot threshhold. It's just not that big.
In CA, I've usually gotten the specialty stuff in smaller, liquor-only stores just over the Oregon border on U.S. 101. They carry whiskies that aren't available in Oregon's Soviet-style liquor monopoly.
When I go to the Midwest, one place I'll go is Binny's, a chain of big (more than 10,000 square feet) liquor stores in and near Chicago. Lots of specialty stuff at Binny's. It's ridiculous to have to do this. And there are some places (I won't name them, in case of the state is looking in here) that are willing to ship to Seattle.
Oh, and guess what? I've been to the Soviet Union when it was the Soviet Union. Their retailers didn't care, because they didn't have to. Just like WA's state liquor monopoly, which charges much more than they should, and carries much less than the should. When there's no competition, there's not much reason to give a shit.
Interestingly enough, though, the same people who have their panties in a twist about the 10,000 foot rule turn right around and attack the small-town exemption to that rule. They are falsely portraying it as opening the floodgates to (horror!) unrestricted alcohol sales.
In fact, in small towns, there are already special provisions that allow for small stores. In Eastern Oregon, where I routinely travel, their Soviet monopoly allows limited (and very low selection, I might add) sales through private sellers in small towns.
These operations have the look and feel of the state stores. Without knowing the details in Oregon, I suspect that they are required to source through the state, hence the bad selection and high prices down there, just like here.
Ooooohhhh, the evil corporations want to make MORE money and we are sooooo against that, unless uh, it's Apple! Then it's okay! As a kid I had ZERO problem getting any kind of alcohol I wanted - hard or soft, not to mention coke, weed, and plenty of acid. And that was in the red half of this oh so precious state. Why the FUCK should the STATE control the sale of alcohol? Should the state then be the only entity allowed to sell tobacco? Fireworks? Gardening tools? *meh, total horseshit.* On a side note, how come nobody has ever been able to sue WA State on behalf of say, parents of people killed by drunk drivers, or people who have died of Cirrhosis of the Liver?
And last, I'll support the continued State monopoly of selling this pisswater poison when they legalize the sale of weed in their fucked up, run down, state stores.
Yes, the State should tax and regulate liquor sales, and 1183 doesn't change that ... in fact it has a slightly positive effect in that regard.
As a consumer that has to deal with the State employees in the liquor store ... I say fire 'em. They clearly aren't customer friendly and oblivious to any requirement to be efficient.
As a consumer, give me a choice on where I purchase my liquor.
As for the State of WA - go work on infrastructure and helping those who need the help, especially the disabled community. Quit cutting their funding for assistance!!!!!
It would be better if they'd just admit that, rather than tell all the other lies. But I'd point out to you that Albertson's, QFC, Safeway, and (I think) Fred Meyer are unionized, and that Costco pays union-level wages.
Don't get me wrong; as a liberal I believe there are things that the government does better than the private market. I just see no reason to believe that selling liquor is one of those things.
You do know that this is illegal, right? Most liquor stores will not ship to WA State because of the Soviet stranglehold here.
Until I’m given actual evidence that the price of booze will be substantially lower I’m not too jazzed about the privatization.
Would pictures of liquor store prices in California, Illinois, and Wisconsin do it? Somehow I doubt it.
It not about math, it's about ethics.
So what if there are lying?
Wadda you gonna do?
Point your finger at them?
Um, I was there on Sunday, and their electioneering consisted of an unmanned table with some pro-1183 pamphlets lying there. A real arm-twister, I'll tell ya.
What am I gonna do if they're lying, @53? Vote no. Bite me.
And Mr. G, take your meds, the ones the State nihilists are telling you to take. You're probably one of those anarchy pinheads who use 'buzzwords' and 'catch phrases' in everything you say and do in a lame attempt to get your point across.
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