With liquor privatization, some drinkers feeling buyer's remorse
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SEATTLE -- It hasn't even been a week since Washington liquor sales shifted from state to private control, but some drinkers are already feeling buyer's remorse.
There's some sticker shock happening at grocery stores around the state, and at least one lawmaker is already looking for ways to fix it.
Washington voters approved Initiative 1183 last fall, taking the state out of the liquor business for the first time since Prohibition. The measure allows stores larger than 10,000 square feet and smaller stores in some areas to sell liquor.
Supporters touted the measure as a free-market reform that would give consumers more choices and lower prices. Those in favor included warehouse giant Costco Wholesale Corp., one of many big-box stores that can negotiate volume discounts for some products or sell their own labels more cheaply.
However, the initiative also imposed an additional 10 percent distributor fee and 17 percent retail fee on spirits to reimburse the state for millions of dollars in lost revenue. The result was higher prices for consumers at many retail outlets.
Retailers also aren't required to include those fees on their sticker price, and that price discrepancy has frustrated some customers.
"It's a very new law and there's a lot of new tax lines that the consumer isn't aware of," said shopper Catie Baron.
That's exactly why state Rep. Gerry Pollet is urging retailers to post the after-tax price on the sticker. If they don't, he said he'll introduce a bill requiring it.
"There's some companies that are clearly taking advantage of the situation, advertising prices without disclosing this is not the final price," he said.
The clear-cut winners of the transition are liquor stores in Oregon. Retailers near the border are reporting a 15-20 percent spike in liquor sales since Washington sales went private.
There's some sticker shock happening at grocery stores around the state, and at least one lawmaker is already looking for ways to fix it.
Washington voters approved Initiative 1183 last fall, taking the state out of the liquor business for the first time since Prohibition. The measure allows stores larger than 10,000 square feet and smaller stores in some areas to sell liquor.
Supporters touted the measure as a free-market reform that would give consumers more choices and lower prices. Those in favor included warehouse giant Costco Wholesale Corp., one of many big-box stores that can negotiate volume discounts for some products or sell their own labels more cheaply.
However, the initiative also imposed an additional 10 percent distributor fee and 17 percent retail fee on spirits to reimburse the state for millions of dollars in lost revenue. The result was higher prices for consumers at many retail outlets.
Retailers also aren't required to include those fees on their sticker price, and that price discrepancy has frustrated some customers.
"It's a very new law and there's a lot of new tax lines that the consumer isn't aware of," said shopper Catie Baron.
That's exactly why state Rep. Gerry Pollet is urging retailers to post the after-tax price on the sticker. If they don't, he said he'll introduce a bill requiring it.
"There's some companies that are clearly taking advantage of the situation, advertising prices without disclosing this is not the final price," he said.
The clear-cut winners of the transition are liquor stores in Oregon. Retailers near the border are reporting a 15-20 percent spike in liquor sales since Washington sales went private.
