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By Jeff E. Schapiro
Richmond Times-Dispatch | MCT Regional News
Moving to get Virginia out of the booze business, Gov. Bob McDonnell is looking to more liquor stores and tiered prices on licenses to generate for taxpayers greater profits than those produced by the state's 76-year-old liquor monopoly.
''The bottom line is the bottom line," Eric Finkbeiner, McDonnell policy chief, said after a closed two-hour session yesterday with distributors, brewers, retailers and others with a stake in the Republican's proposed privatization of the state-owned network of liquor stores.
''The governor is not only philosophically opposed to Virginia being in the liquor retail and distribution business, but is also hoping the privatization effort allows wholesalers, retailers and restaurants to grow their businesses."
It was the second time in as many months that Finkbeiner and other senior administration officials have conferred with industry representatives on ways to end state control of the retail sale and wholesale distribution of distilled spirits.
McDonnell envisions privatization of the Virginia Department of Alcoholic Beverage Control as a potential windfall for the cash-thirsty transportation system. The proposal may have greater urgency, given that offshore exploration for oil and gas -- also touted by McDonnell as a source of road funds -- has been delayed, apparently indefinitely, because of the BP disaster on the Gulf Coast.
During yesterday's meeting -- attended by about 20 executives, lobbyists, lawyers and ABC officials -- discussions touched on how many stores would be allowed to sell liquor; that sales volume, location and market conditions might drive the cost of retail licenses; and whether workers at state-owned stores could be hired by private retailers.
Currently, Virginia operates nearly 360 stores. Legislation killed in the 2010 General Assembly would have allowed 800 private stores. In yesterday's talks, state and industry officials said, there was agreement that the initial number of private stores would be somewhere in between, with the potential for more.
David Trone, a founder of Total Wine & More, a retailer that operates 65 stores in 12 states, including Virginia, was among those participating in the sessions in McDonnell's office. Trone said in an interview before yesterday's meeting that privatization ultimately benefits consumers.
Because of the state's monopoly, there is "very poor selection, and limited service, and the prices, of course, are high," Trone said.
However, resistance to privatization is largely rooted in concerns among legislators, particularly those on the budget-writing committees, that Virginia risks losing a reliable trove of cash. The ABC system generates about $250 million a year, including $111 million in profits -- money that lawmakers can steer to their pet programs.
The McDonnell push to privatization -- legislation is expected in early August -- is likely to be closely watched. Virginia is among 18 states and one county, Montgomery County, Md., that directly control sales of alcoholic beverages. Several closed jurisdictions considered switching to a free-market system but only slightly modified their programs.
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Does Virginia Really Need More Booze??
Does Virginia really more booze??
Do we really want our young people to be raised in an environment where liquor stores are as prevalent as fast food joints??
Do we really want small business owners to be the "gate keepers" for access to hard liquor by our children?? At least at state stores, employees don't have the personal incentive to sell vodka to a kid with a fake id that a small store owner would.
Booze is the last legal drug, and is responsible for death and destruction in untold quantities. A British couple killed on Princess Ann Road. A twenty-year old only child run down at Towne Center. A school teacher run down crossing Shore Drive.
Do we really want to make this drug cheaper, easier to obtain and more accesible to our children??
Is this just another example of our Govenor being a lacky to big business or is he just an idiot.
Yes
Trying to hide it just makes it taboo and then you end up with uneducated binge drinking. Alcohol is healthy in many ways as long as it's not abused.
ABC by the State
Well, folks, all the comments I've read miss one important point. NO state or federal agency can do anything as well as private enterprise!!! So why not get it out of state hands?
I noticed that a founder of Total Wine was at the meeting. He really is an expert at marketing. If you ever get to Naples, FL, go by their store on Airport Rd. and you will see first hand why Virginia should be out of the business. It's as big as a grocery store with excellent selection and low prices. Their employees are friendly and knowledgeable. No, I don't own stock in Total Wine.
Private Industry is Doing A Great Job
Private industry is doing a great job down in the Gulf.
Nice oil spill Mr. Private Industry.
State stores were created so there would NOT be a liquor store on every corner. Go to DC, Jersey, Phila and ask yourself is we want to end up like that.
Actually,
I think that state stores were created so that the state could control the sales of liquor. Particularly in states that were themselves controlled by whatever church was the most powerful. By going to private ownership, selection will improve due to the ability of the owner to stock whatever sells in a particular area, and costs to the state will decrease because of removal of the state employees with their associated retirement / health programs and salaries, not to mention the physical upkeep of the stores.
Dumb
Well, that was about the dumbest red herring I've seen in a while.
THINK PEOPLE
Think People! You will have a liquor store on EVERY CORNER! Just like Chicago ...Just like D.C. Dont fall for this!.... This will not benifit VA.
selling a cash cow
So far selling a cash cow doesn't make any sense to me.....it must be a GOP thing!
Ethics thing
It's based on the ethics that the state should not be creating a monopoly when a competitive market is completely practical. This is left over from the great mistake of prohibition.
selling a cash cow
Gertz Point said "...So far selling a cash cow doesn't make any sense to me.....it must be a GOP thing..."
No, it's a religious thing. He does not believe that the state should be involved in selling of alcohol. So, in pursuit of that personal religious belief, we will have liquor stores on every corner and 10 foot high signs advertising the latest vodka sale and the revenue from the initial sale will be a onetime shot in the arm. We (the state) will lose a continuous revenue stream to satisfy our Governor's private beliefs. So between Cuchi Cuchi and his litigations and Reverend McDonnell, we are hemorrhaging cash. Yes, Repubtillians are much more financially responsible than Democrats.