Liquor Booze
Privatizing liquor sales in Washington state hasn't brought prices down, as some had hoped. Instead, average liquor prices are up 10 percent since a year ago. (AP Photo/file)

Privatizing liquor sales hasn't brought price down

December 31, 2012 @ 11:05 am (Updated: 11:09 am - 12/31/12 )

EVERETT, Wash. (AP) - Privatizing liquor sales in Washington state hasn't brought prices down, as some had hoped. Instead, average liquor prices are up 10 percent since a year ago.

The cost of liquor in Washington went up six months ago, right after the changeover, and has mostly stayed that way, The Daily Herald reported Monday.

The average statewide price per liter of hard liquor after taxes was $24.06 in October, according to the state Department of Revenue.

That's slightly less than the average price in June, right after privatization. But it's still 10 percent higher than the average of $21.59 at state liquor stores in October 2011.

Backers of Initiative-1183 had steered clear of claiming the plan would lower prices. But they did mention reductions as a potential benefit because of increased competition.

"It's gone up quite a bit," said Trudy Brodie, of Edmonds, who manages the bar at the North City Eagles Club in Shoreline. "We had to raise prices."

The ballot measure was designed to keep state and local governments from losing money in the transition.

The state's previous spirits sales tax and liter taxes stayed in place. The state's 51.9 percent mark-up went away but was replaced by fees of 10 percent on distributors and 17 percent on retailers.

"The private sector is adding its own markup as well," said Brian Smith, a spokesman for the state Liquor Control Board.

The fee charged to distributors is scheduled to be cut in half in 2014, to 5 percent, which could help bring prices down, Smith said.

Some prices at smaller stores are higher than those at large chain stores because small retailers can't get bulk discounts from distributors, said Leonard Daniel, who owns and operates Mountlake Terrace Liquor & Wine with his wife, Lori Daniel.

Also, each brand is often available from only one distributor, Leonard Daniel said. The right to distribute a brand is bought by the highest bidder.

"There's no competition until you get down to this level and we're just fighting for the crumbs," he said.

Leonard and Lori Daniel say they make up for their disadvantages with customer service and product knowledge, and by carrying a wider variety of brands and sizes than many of the bigger stores.

Brodie said she buys directly from distributors as well but goes to the Mountlake Terrace store to get items that aren't available from distributors.

"They're pretty good to me and they're local," she said of the Daniels.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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Comments (27)


  • Add A Comment

  • cw1997 wrote...
    Price Of Good Products In WA
    December 31, 2012 11:19 am
    The problem is the TAX, go figure. Go to TX or OR or CA and see what you are paying for liquor. The problem is the STATE's need for ever more funds... surprise? NOT!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • dori monson fan wrote...
    johnqe, ch
    December 31, 2012 12:07 pm
    do a blind taste test. kirkland signature vs. grey goose, tito's, chopan, or belvadere. most people rate them about the same. martini conesures will rate chopan ot titos higher, but 90% of people would pick the best of those as often as the others. kirkland signature is pretty high quality, especially the $46 1.5 L k.s. bottle.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • WaGig wrote...
    Not a Vodka Drinker...
    December 31, 2012 12:20 pm
    But I have heard from those that are and i hear nothing but good about kirkland signature! Also, i am confused...Are the liberals upset that the price of alcohol went up therefore making it more difficult for our society to access alcohol? I mean, with higher prices parents are probably scaling back on keeping alcohol in their homes which decreases access to kids right? So liberals are mad about this? And the state is saving millions of dollars while making millions! Who is against that???
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • CH wrote...
    kirkland signature vs. grey goose or MD 20 20 . . . .
    December 31, 2012 12:44 pm
    most drunks rate them about the same. Thank you for you input. I'm not a drunk so I take you at your word.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Cameron wrote...
    Who wrote this tripe?
    December 31, 2012 1:17 pm
    Take a stroll through Total Wine and More and then try and continue the whine with a straight face. Should the State consider not being so punative in it's taxation practices? Sure. Will they? No, they simply are not that smart. Remember the same folks running this transition are going to be in charge of MJ in this State. They will waste the competitive advantage they could exploit by being first to legalize. They lack the marketing imagination that it will take to actually make Washington State successful in the MJ distribution and sales business.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • rational wrote...
    Faulty claim...
    December 31, 2012 3:25 pm
    How can you tell the price hasn't gone down? Have you adjusted for the Obama inflation? The progressives have been devaluing our dollar for nearly a century now, and are doing it on a monthly basis now. Or has it escaped your notice that the cost of everything is going up?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Mike in Pioneer Square wrote...
    Ha ha
    December 31, 2012 4:03 pm
    Everyone wants something for nothing. Not gonna get it.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Forrest wrote...
    Vodka, the choice of lushes everywhere.
    December 31, 2012 4:19 pm
    It's just alcohol and water, there is no taste.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Ms Michael wrote...
    Tricked by the state
    December 31, 2012 7:30 pm
    The state is making a lot more on liquor sales than they were... They no longer have to pay for their store rents or employee pay and and benefits and there are no longer new employees retiring from the liquor stores to colloect retirement. AND their profits on the taxes have gone up as well! I think we were played!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • tlmbrt wrote...
    What do you think
    January 1, 2013 12:07 am
    will happen when the state starts selling pot? HIGH TAXES and HIGH PRICES. Be careful what you wish for!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Lake Tapps Chris wrote...
    Yes the state IS a problem But...
    January 1, 2013 8:08 am
    If you shop for around for the best price for your Booze, like you should for everything else, Your gas, food, lumber, etc, it will help. It's not worth stocking a product if your price isn't low enough to make a sale. A bottle of booze at Costco can be $12 while at one of the local QFC's or Safeway's it might be $16. That's a huge difference that just goes into their pocket. Do your homework and things will chang, no matter what the product is. It's commom sense for a smart consumer that common consumers lack.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }