Pure
Fiel a Verdad
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Initiative 1100 was defeated in the state of Washington, 52% against. also called the Costco Initiative, it would have privatized liquor sales; it would have taken the state out of liquor sales (through its outlets) and control of liquor sales. Costco and other giant retailers want into the lucrative market. (see below).
a number of other states, e.g. NH, OH, PA, VT, OR control sales of 'spirits' (not beer or wine). the Province of Ontario does as well. persons must purchase liquor at state controlled outlets. it's a lucrative source of funds, possibly helping to lower other state/provincial taxes.
the churches and other conservative groups, after the repeal of Prohibition, pushed for and succeeded in enacting regulation of liquor sales, which exists still in at least 10 states.
the forces of capitalism or 'classic liberalism' [and modern 'libertarians'] break down religion- and morals- based laws and rules, preferring instead the benefits (and profits) generated by the 'free market.' examples range from Sunday closings to regulation of gambling.
a number of these measures--e.g Sunday closings--- seem to have had benefits outside of the intended promotion of religion and morals.
=================
http://online.wsj.com/article/SB10001424052748703650604575312762720688780.html
Costco Would Scotch Old Washington State Liquor Laws
[[Before the election. June 18, 2010]].
By DAVID KESMODEL
Costco Wholesale Corp., eager to sell alcohol as freely as it does toilet paper, is backing an effort to shake up liquor distribution laws in its home state of Washington.
The giant warehouse club has thrown its weight behind a proposed ballot initiative that would eliminate numerous post-Prohibition-era rules and privatize retail liquor sales in the state.
The effort is being closely watched by producers, distributors and retailers of beer, wine and liquor across the U.S. because it would mark the most sweeping overhaul of any state's alcohol trade regulations in years and could presage similar proposals in other states. Distributors, for their part, object to the proposed changes, because it would threaten their protected position as middlemen.
Washington is one of about 20 states that maintain some form of a liquor monopoly. Costco wants that to change, and wants businesses to have more freedom in the way they buy and sell wine and beer. The discount-retail giant, based in Issaquah, Wash., went so far as to have its own employees collect signatures from customers in its warehouse stores to get an initiative put on the November ballot. Consumers would benefit by paying lower prices, Costco says.
Costco essentially wants to be able to do with alcoholic beverages what it and other big-box retailers do with other consumer products. It wants, for instance, to be able to buy alcohol in large volumes at a discount and take delivery of these orders at a central warehouse. For now, it must make separate purchases of wine and beer for each of its stores, and pay distributors the same price that a corner grocery store pays.
The part of the initiative that most concerns distributors is that it would allow Costco and other retailers to buy directly from manufacturers and remove "tied house" rules that generally restrict cross-ownership among alcohol producers, retailers and distributors. These kinds of complex three-tiered systems have governed sales in most states since the 1933 repeal of Prohibition.
In Prohibition's wake, states created rules requiring the separation of the production, distribution and retail tiers to limit the potential for anticompetitive practices and to discourage the overconsumption of alcohol.
Costco has contributed about $535,000 to an effort by Modernize Washington, a group of private citizens, to have Initiative 1100 placed on the November ballot. The group also says it has received a commitment of financial support from Kroger Co.'s Fred Meyer grocery chain. Proponents need about 242,000 signatures by July 2. Costco and other backers express confidence they'll have enough.
Costco backs the proposal because the regulatory system is "very antiquated" and results in higher prices for consumers, says John McKay, an executive vice president for Costco.
.The company previously sought to eliminate many of the restrictions in its home state through lobbying in the legislature, and through an antitrust lawsuit it brought against the state in 2004. But those efforts largely failed.
A poll sponsored by the University of Washington last month showed that about 50% of voters support permitting liquor to be sold at grocery and other stores where beer and wine already are sold, compared with 36% who are against it. (Many were undecided.) Many residents don't like having to make a separate trip to a state-run store to buy a bottle of vodka or rum.
The Initiative also has its critics. The Costco-backed campaign "would basically deregulate the industry," says Craig Wolf, president of Wine & Spirits Wholesalers of America, a national lobbying group. Mr. Wolf said his group would fight the initiative. "What they're trying to do is take it back to pre-Prohibition days, when there's no regulation between the tiers and there really are no tiers," Mr. Wolf says.
a number of other states, e.g. NH, OH, PA, VT, OR control sales of 'spirits' (not beer or wine). the Province of Ontario does as well. persons must purchase liquor at state controlled outlets. it's a lucrative source of funds, possibly helping to lower other state/provincial taxes.
the churches and other conservative groups, after the repeal of Prohibition, pushed for and succeeded in enacting regulation of liquor sales, which exists still in at least 10 states.
the forces of capitalism or 'classic liberalism' [and modern 'libertarians'] break down religion- and morals- based laws and rules, preferring instead the benefits (and profits) generated by the 'free market.' examples range from Sunday closings to regulation of gambling.
a number of these measures--e.g Sunday closings--- seem to have had benefits outside of the intended promotion of religion and morals.
=================
http://online.wsj.com/article/SB10001424052748703650604575312762720688780.html
Costco Would Scotch Old Washington State Liquor Laws
[[Before the election. June 18, 2010]].
By DAVID KESMODEL
Costco Wholesale Corp., eager to sell alcohol as freely as it does toilet paper, is backing an effort to shake up liquor distribution laws in its home state of Washington.
The giant warehouse club has thrown its weight behind a proposed ballot initiative that would eliminate numerous post-Prohibition-era rules and privatize retail liquor sales in the state.
The effort is being closely watched by producers, distributors and retailers of beer, wine and liquor across the U.S. because it would mark the most sweeping overhaul of any state's alcohol trade regulations in years and could presage similar proposals in other states. Distributors, for their part, object to the proposed changes, because it would threaten their protected position as middlemen.
Washington is one of about 20 states that maintain some form of a liquor monopoly. Costco wants that to change, and wants businesses to have more freedom in the way they buy and sell wine and beer. The discount-retail giant, based in Issaquah, Wash., went so far as to have its own employees collect signatures from customers in its warehouse stores to get an initiative put on the November ballot. Consumers would benefit by paying lower prices, Costco says.
Costco essentially wants to be able to do with alcoholic beverages what it and other big-box retailers do with other consumer products. It wants, for instance, to be able to buy alcohol in large volumes at a discount and take delivery of these orders at a central warehouse. For now, it must make separate purchases of wine and beer for each of its stores, and pay distributors the same price that a corner grocery store pays.
The part of the initiative that most concerns distributors is that it would allow Costco and other retailers to buy directly from manufacturers and remove "tied house" rules that generally restrict cross-ownership among alcohol producers, retailers and distributors. These kinds of complex three-tiered systems have governed sales in most states since the 1933 repeal of Prohibition.
In Prohibition's wake, states created rules requiring the separation of the production, distribution and retail tiers to limit the potential for anticompetitive practices and to discourage the overconsumption of alcohol.
Costco has contributed about $535,000 to an effort by Modernize Washington, a group of private citizens, to have Initiative 1100 placed on the November ballot. The group also says it has received a commitment of financial support from Kroger Co.'s Fred Meyer grocery chain. Proponents need about 242,000 signatures by July 2. Costco and other backers express confidence they'll have enough.
Costco backs the proposal because the regulatory system is "very antiquated" and results in higher prices for consumers, says John McKay, an executive vice president for Costco.
.The company previously sought to eliminate many of the restrictions in its home state through lobbying in the legislature, and through an antitrust lawsuit it brought against the state in 2004. But those efforts largely failed.
A poll sponsored by the University of Washington last month showed that about 50% of voters support permitting liquor to be sold at grocery and other stores where beer and wine already are sold, compared with 36% who are against it. (Many were undecided.) Many residents don't like having to make a separate trip to a state-run store to buy a bottle of vodka or rum.
The Initiative also has its critics. The Costco-backed campaign "would basically deregulate the industry," says Craig Wolf, president of Wine & Spirits Wholesalers of America, a national lobbying group. Mr. Wolf said his group would fight the initiative. "What they're trying to do is take it back to pre-Prohibition days, when there's no regulation between the tiers and there really are no tiers," Mr. Wolf says.