The voters of Washington state approved Initiative 1183 yesterday by a wide margin. I-1183 will further privatize Washington\’s liquor distribution system and was backed primarily by Costco. The major changes will be that: a) the state\’s existing government liquor stores (which had a monopoly on the sale of spirits) will be closed or sold, b) the state\’s distribution warehouse will be closed, c) the state will license larger retailers to sell spirits (the sale of beer and wine is already mostly privatized in WA), d) state and local government revenue from liquor will rise due to the imposition of liquor taxes, e) the 3 tier system will be modified for wine and spirits such that retailers can buy direct from suppliers, and f) retail prices will likely decline for some products. The full stories are here: Voters Kick State Out of Liquor Business and Initiative 1183 – Thar She Blows, Captain Sinegal. This analysis also explains things in more detail: Citizens Guide to Initiative 1183.
Month: November 2011
In a move that was being fairly widely applauded by industry groups in California, the California Dept. of Alcoholic Beverage Control (ABC) has issued an advisory today that sets out plain language rules for wineries and retailers who wish to use third party marketing companies to help them sell their wine, particularly on the internet. This issue had become contentious and had caused a great deal of confusion after the ABC issued an earlier advisory that cast doubt on the legality of such marketing without providing firm guidelines. The new advisory confirms that this type of marketing is legal so long as it is properly structured with the major requirement being that the licensee must maintain control over the selection, pricing and sales transactions. The story is here: New Advisory Explains How Internet Businesses Can Properly Promote Alcoholic Beverage Sales. There is also a short legal commentary from Napa law firm, Dickenson Peatman & Fogarty here: California ABC Reverses Position on Third-Party Providers Following Industry Input. The actual advisory is here: Industry Advisory – Third Party Providers. This issue is directly relevant to wineries in British Columbia where the legal issues are very similar.