Comments

1
I don't understand your theory - unless it is just a rehashing of OLCC threats to sabotage micros with more regulation.

It seems real market effects of such reform would be a boon to micros - and fatal for the OLCC.
2
Without saying too much or establishing my credentials, Nathan is right on here.
3
Please get a new graphic.
4
Even if this were true, it would just mean taking money from bars, restaurants, and individuals to subsidize the local liquor industry. I don't know why one industry should be getting support at the expense of another. Does the local liquor industry give some sort of special benefit to the community or culture that it deserves such special treatment?

But that said, this seems simplistic. I'd want to know how the liquor industry's treatment by the OLCC differs from the very successful wine and beer industries in Oregon. I'd also want to know how distilleries in other states have done with more liberal liquor policies.

I tend to believe that Portland/Oregon distilleries have an advantage and don't truly need to compete on price because Oregonians are very committed to supporting local products, especially when they are good. Rogue Creamery's blue cheese is about the most expensive stuff you can buy, but they sell out like crazy. It's three times more expensive than a quality stilton. The farmers markets are slammed despite their products being much more expensive than what you can get at Safeway or Fred Meyer.

The OLCC is an anachronism that's time has come. It should be limited to enforcement and licensing. Maybe the pressure of rum runners between Vancouver and Portland will bring this to a head and bring Oregon into the 20th century -- 50 years late.
5
the theory is that if you can buy cheap liquor at costco they will have a very limited selection and no one will be able to find the local stuff. It is all complete bs in my opinion because we can have all the exact same taxes we do now, and allow sales in more places, in fact they might do better because you wouldn't have to go out of your way to buy their products. When I walk into a place like the liquor barn in California a lack of selection isn't my main concern.
6
Does the local liquor industry give some special benefit to the community? Clear Creek Distillery buys 80,000 lbs annually of Hood River pears. So, yes.

If this info checks out, count me as opposed to privatization.
7
Ultimately, privatization is going to be mean more money is going to be taken out of state. People bitch about all these "evil" state liquor stores taking their money, but in reality it is going to mean out of state corporations are going to be selling the same liquor for almost the same price (once they drive out competition) but instead of those profits staying in Oregon or going directly to fund state programs...they are going to fuel executive bonuses in Delaware (or some other tax haven).

In addition, Oregon's distilling industry is still in its relative infancy. It is true that having access to state stores is a subsidy to it, but it is a subsidy to help people in our own state to develop a local industry that is going to pay taxes and provide jobs. In addition, as much as people hate people moving to Oregon, the buzz that is created about locally produced products is a great thing for exports.

Oh yeah and Costco liquor is to be taxed at the same rate or maybe even higher, so don't expect much savings at all.
8
I never took no fancy pants journalism class or worked for a newspaper other than delivering papers as a young'un, but ain't you reporter-types supposed to maybe call up some of them there distillers and see what they have to say? I can lend you a phone. They can probably sort this out right quick for you. (Though I can see how a moonshiner might not want to rile up the revenoovers with uncharitable comments. )
9
Nathan is correct. With sales in supermarkets, large liquor companies pay for shelf space and crowd out specialty spirits. It's already done today in supermarkets for alcoholic, nonalcoholic beverages and other products. Large stores like Walmart, Target, Kroger, Safeway and Costco forcefully negotiate deals with suppliers putting downward pressures on wages. No need to do that with Oregon microdistillers. It's a 1% power play.

The Merc should do an in depth story on how our beers, wine and distillates compete out of state.
10
Most of the local distilleries in fact do OPPOSE privatization. The level-playing field that the OLCC offers can not be understated. This goes beyond merely wondering if prices will rise or fall or whether consumer selection options can be maintained. As always, look to who is funding state measures and you easily see who benefits from them. In Washington, the new law was written by large big box stores and gives them all the rewards. They go so far as to write into the law that there can be no new liquor stores smaller than 10,000 sq. ft. They write this as a supposed "deterent" to people's fears that liquor stores will pop up on every corner when in fact it's real meaning is to crush any mom and pop competition they might encounter. So all that might exist in your neighborhood is Costgo and Walmart and they will be selling only top brands. Furthermore, they wrote into legistation that they can now deal directly with the manufacturer (distilleries). Sounds great but they also made it so that volume discounts can be made (unlawful everywhere else concerning spirits). Thus they will only accept clients that they can strongarm volume discounts. The local distilleries can not offer volume discounts...their margins are already slim and their production smaller. These are just a few of the larger issues. It's not that privatization itself is evil (free markets should work) but it depends on who pushes through the laws. At the very least Oregon should take a wait-and-see approach to observe Washington before they fix what ain't (entirely) broken. The OLCC is antiquated in many regards; the very fact they are in charge of enforcement and promotion is screwed up. There are many reasons to want the institution to fold, but be careful how you do it. And be aware there are consequences...ask any local distillery (except Clear Creek who is big enough now to want a private distributor) whether they want the OLCC to stay in distribution and you'll hear near unanimous support. Love it or hate it, the OLCC is one of the reasons we HAVE a blossoming micro-distillery industry.
11
I'm not an Oregonian; I'm in Pennsylvania, where we're working on a privatization push of our own, and this same concern has been floated there. With respect, you can see that this is probably a misplaced concern by looking at the beer selection in supermarkets. The whole "large stores will only sell the major brewers' beers" scare was floated there, too, but the craft brewers are well-represented. Why? Because the stores make a very good profit on them.
The thing you want to watch out for is a piece like Washington's privatization law has: the curious size restriction, limiting liquor sales to LARGE stores. That's something you want to stay away from; it's clearly slanted toward the big stores...and why? So convenience stores won't sell liquor? That's a pressing problem? Watch your legislature very carefully when it comes to writing a privatization bill. The ones offered so far in Pennsylvania have been badly warped by business interests; we're hoping for better ones.

Please wait...

Comments are closed.

Commenting on this item is available only to members of the site. You can sign in here or create an account here.


Add a comment
Preview

By posting this comment, you are agreeing to our Terms of Use.