Jolt
State Liquor Stores Expanding
Today's Loser: Costco
As we noted earlier today the house ways and means 2011-2013 budget proposal included a little surprise: $300 million in revenue from privatizing the state's liquor distribution system. (This is has nothing to do with liquor business privatization plan that Costco proposed earlier this session ; the plan does not privatize the retail side as Costco's pitch did.)
Digging into the budget fine print, there's a bit more revenue for the state from booze sales. Indeed, not only is the state shying from privatizing its stores, it's expanding.
As part of the Liquor Control Board's "customer service initiatives" authorized in the budget, the state will set up six contract stores, two new state stores, and two "high-volume specialty stores." The budget also includes plans for a pilot program to set up five new state liquor stores in conjunction with grocery stores. The state expects to take in $6 million.
That's fifteen new stores. None at Costco.
To improve convenience, the Liquor Control Board will also standardize store hours, offer gift cards, and begin offering delivery to private restaurants.
Costco VP John Sullivan belittles the states new initiatives asking why "it took the state 70 years to figure out offering delivery to bars and restaurants was a good ideas. It just goes to show why a public monopoly is not consistent with optimizing service and convenience."
As for the $300 million from the distribution privatization plan, Sullivan asks how much money the state is counting on to make it worth their while—"and do they know if they'll get it?" (The proposal that supporters are pushing in Olympia says the state would still collect all the taxes an split distribution profits 50/50).
Sullivan also questions the wisdom of "giving a monopoly to a private party instead of promoting competition for the best prices and services."
As for the Costco bill for full privatization, he says he's "waiting to ascertain how they're evaluating things down there."
As we noted earlier today the house ways and means 2011-2013 budget proposal included a little surprise: $300 million in revenue from privatizing the state's liquor distribution system. (This is has nothing to do with liquor business privatization plan that Costco proposed earlier this session ; the plan does not privatize the retail side as Costco's pitch did.)
Digging into the budget fine print, there's a bit more revenue for the state from booze sales. Indeed, not only is the state shying from privatizing its stores, it's expanding.
As part of the Liquor Control Board's "customer service initiatives" authorized in the budget, the state will set up six contract stores, two new state stores, and two "high-volume specialty stores." The budget also includes plans for a pilot program to set up five new state liquor stores in conjunction with grocery stores. The state expects to take in $6 million.
That's fifteen new stores. None at Costco.
To improve convenience, the Liquor Control Board will also standardize store hours, offer gift cards, and begin offering delivery to private restaurants.
Costco VP John Sullivan belittles the states new initiatives asking why "it took the state 70 years to figure out offering delivery to bars and restaurants was a good ideas. It just goes to show why a public monopoly is not consistent with optimizing service and convenience."
As for the $300 million from the distribution privatization plan, Sullivan asks how much money the state is counting on to make it worth their while—"and do they know if they'll get it?" (The proposal that supporters are pushing in Olympia says the state would still collect all the taxes an split distribution profits 50/50).
Sullivan also questions the wisdom of "giving a monopoly to a private party instead of promoting competition for the best prices and services."
As for the Costco bill for full privatization, he says he's "waiting to ascertain how they're evaluating things down there."
