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Liquor Laws

The First 1183 Milestone Happens Thursday

March 1 brings big changes, but it’s too soon to say what this means for your bar tab.

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News flash: The process of privatizing our liquor is still fraught with unknowns. Photo: Skippyjon via Flickr.

March 1 marks the first significant milestone in our state’s lurch toward liquor privatization. As of Thursday, bars and restaurants can start buying their booze directly from distillers and distributors, rather than the state (the big deadline is June 1, when state-run liquor stores must close and private retailers can begin selling the hard stuff under a whole new set of fees and taxes).

The drinking public shouldn’t see too many dramatic changes just yet, but that’s mostly because the industry still isn’t quite sure how this first step will unfold, or how, exactly, it might raise the price of your negroni.

One local distributor circulated an email last week explaining the changes using the example of a bottle of Voyager gin for a wholesale price of $15.50, less than the current cost of $18.66. But once you add in the sales tax and the fees levied on wholesalers and retailers, a bar ends up paying $19.45 for that same bottle. Many products’ prices are still being finalized.

Distributors have been busy setting up accounts with bars and restaurants. “The hassle is going to be finding out who has what,” says Travis Stanley-Jones, owner of Mulleady’s Pub in Magnolia. He’s largely concerned with specialty items like Vya sweet vermouth or Chartreuse, staples in Mulleady’s cocktail program.

Some brands, like Voyager, have already disappeared from most state-run liquor store shelves, and many staple spirits have been in short supply for weeks. However Steven Stone, president of the Washington Distillers Guild and founder of Sound Spirits, says many bottles are still available at state liquor stores, and are cheaper than buying from a distributor, since liquor stores’ new privatized pricing situation doesn’t kick in until June 1.

Meanwhile, Capitol Hill Seattle blog recently wrote about Oola Distillery owner Kirby Kallas-Lewis and manager Brandon Gillespie’s plan to distribute Oola’s wares to bars and restaurants themselves. In a gesture of solidarity, Rachel Marshall, co-proprietress of nearby bar Montana says she will start using Oola’s gin and vodka in Montana’s popular carbonated kegged cocktails, “making our already amazing fizzy drinks that much more legit” to locally inclined boozers.

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Tags: Initiative 1183

Liquor Laws

I-1183 Narrowly Ahead in Washington Poll

Half of the respondents are likely to support the liquor privatization measure.

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I-1183 retains a slight edge among voters, according to the Washington Poll.

On Monday the Washington Poll, the survey wonk based out of UW, released stats from an analysis of just over 930 Evergreen voters. Among the findings: half of the respondents are leaning toward spendy liquor privatization measure 1183 (more on the Costco-backed I-1183 here). Forty-three percent are against it, and seven percent remain undecided.

Meanwhile, in recent days a slew of statewide orgs have come out voicing their opposition to the initiative, including the public health, medical, and nurses associations and International Community Health Services. Governor Gregoire has also naysaid the measure.

How do local distilleries feel about it? Read on.

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Tags: Booze News, Liquor Laws, Initiative 1183

Liquor Laws

Do Local Distilleries Support I-1183?

A sampling of answers from spirit makers around Washington.

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A test still at Sun Liquor distillery

Photo: Jessica Voelker

As part of an upcoming project, Seattle Met intern Brian Colella and I asked licensed Washington distilleries about their opinions regarding the Costco-backed liquor privatization measure I-1183, upon which Washingtonians will vote this November.

Many distilleries mentioned their concern about the initiative’s stipulation that a retailer “must have ten thousand square feet or more of fully enclosed retail space within a single structure in order to get a license to sell liquor, with limited exceptions.”

We asked the distillers: “Do you or would you support liquor privatization initiative 1183?” (Anonymity was promised).

Here is a sampling of their answers:

“The 10,000 square foot rule is the main problem with this initiative.”

“I’m ambivalent. One downside is the 10,000 square foot minimum retail license rule who prohibit any small new specialty liquor stores from being able to open. More so than grocery stores, it’s the specialty stores that will be interested in stocking our product.”

“Clearly this initiative is not to allow privatization for the sake of getting the state out of the business, but….to allow a few private big fish to take over.”

" …much of the advertising against the initiative is based on red herrings about teen access to alcohol rather than the real issues. The actual proposal is more about who controls and profits from sales, and this measure differs from last year’s in having more language about alcohol law enforcement and about ensuring state revenues. However, the 10,000 square foot requirement is odd on its face…."

“We are undecided at this time.”

“I’d rather see the current system restructured as opposed to putting the distribution into the hands of a few private entities. Tiny distilleries aren’t likely to have the same access that they currently enjoy through the WSLCB.”

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Tags: Liquor Laws, Liquor Privatization, Initiative 1183

Liquor Laws

Dollars Adding Up Fast on Both Sides of the New Booze Initiative

Publicola has the numbers.

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Here’s Britney at a liquor store with her sunglasses on. (“So, lahk, y’all can’t recognize me and stuff.”)

A month and a half ahead of Election Day, and total moneys raised on both sides of liquor privatization are already approaching last year’s numbers, Publicola reported Tuesday.

The deep-pocketed, private-liquor-initiative-loving Costco has contributed five million dollars to the cause, about 96 percent of total funds raised in favor of I-1183, the privatization initiative upon which we will vote this November.

But Protect Our Communities—that’s what the anti-privatization people are calling themselves—beat out the big-box chain, raising $6.1 million via contributions from interested parties like Hood River Distillers and Wine and Spirits Wholesalers of America.

So together, that adds up to 11.1 million bucks spent for and against privatization this year so far. The total amount raised last year to promote and defeat Costco’s I-1100 was $15 million.

Read the full article on Publicola.

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Tags: Liquor Laws, Costco, Liquor Privatization, Celebrities in Liquor Stores, Initiative 1183

Liquor Laws

Spirits and Washington State: Here Come the Ads Again

Get ready for familiar arguments for and against liquor privatization.

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As you have likely heard by now, Costco’s back with a new initiative, I-1183, aimed at kicking the state out of the booze business.

In the new privatization plan, only retailers larger than 10,000 square feet would be eligible to sell spirits. Licensed private distributors would take over the state-run system, paying the state 10 percent of their gross spirit revenues in their first two years of operation and five percent after that. Retail outlets and distribution facilities would be auctioned off to private bidders.

Like Costco’s 2010 initiative I-1100, I-1183 also proposes removing the ban on bulk discounts currently imposed on wineries and wine retailers.

And between now and November, when we vote yay or nay on I-1183, we can plan to see a lot of advertisements from both sides. The cons, who reportedly just received $3.6 million from the Wine and Spirits Wholesalers of America, are taking the public safety approach again this year. Not surprising, considering last year’s effective use of ambulances and hell-raising teenagers in the campaign against I-1100 and its frenemy privatization proposal, I-1105.

Expect extensive coverage of this sticky spirits situation here on Sauced. Meantime, enjoy the ad, one of the first in what is certain to be a barrage of misleading messages on both sides of the issue.

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Tags: Liquor Laws, Liquor Privatization, Initiative 1183

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