The fight with the package store lobby continues. News release from Governor Dan Malloy:
Governor Dannel P. Malloy today announced that he has introduced legislation that will empower businesses by modifying a 1981 state law, which mandates that retailers of alcoholic beverages sell their products at certain–and artificially high–prices. The proposal will put the authority to determine the prices of these products back into the hands of retailers and out of the hands of government.
Currently, Connecticut is the only state in the region with a law requiring that retailers of alcoholic beverages sell their products at a minimum price determined by the wholesaler industry. That means retailers cannot set the price of the products they put on the shelves in their own stores. As a result, consumers in Connecticut often pay more for these products than in other states because of an artificially determined price that was required by the government. This statute is unique to only off-premises alcohol retailers and treats no other types of industries in the same manner.
“Why would government force residents to pay artificially high prices? It’s illogical and backwards. We need to be competitive with surrounding states, who have lower prices–and we need to let the market work instead of allowing backwards laws to remain on the books,” Governor Malloy said. “You’re either for inflated, artificially high prices, or you’re against them. We’ve done much to reform out liquor laws in a consumer-friendly way, from Sunday sales to allowing stores to remain open later. But the prices for residents should come down–it’s the commonsense thing to do.”
The Governor is proposing that the law be modified to allow retailers to sell wine and liquor using a more reasonable, logical criteria: actual cost paid. This is the same standard used in neighboring states in the northeast.
The legislation is Senate Bill 14, An Act Ensuring the Regional Competitiveness of Connecticut’s Liquor Prices. It comes after the Governor passed a series of reforms, including allowing off-premises alcohol to be sold on Sundays and allowing stores to remain open later if they choose.
Is there not a minimum price for cigarettes? Is this attitude still a relic of the old Blue Laws? Generally I would favor competition/free market forces determine prices. However from what I have read, independent liquor stores are saying big retailers are pushing this because they have the ability to lower prices at first, drive smaller liquor stores out of business and we will end up with less competition, allowing the big retailers complete ownership of the alcohol/liquor business, and after the shakedown, with no competition we will see higher liquor prices. I wish I had not lost my crystal ball allowing me to see into the future.
Big retailers, big donations, more control.
This proposed legislation will bring about disruption in the market. Eliminating smaller stores and ultimate collusion in higher pricing. Additionally, there will be a great loss of jobs to the drivers of the distributors. I agree with you on your free market forces logic. Memo to Malloy: It’s not the price per bottle, it’s the high state taxes to the bottle that result in higher prices!
It’s called “sin” taxes. Generally “sin” taxes have met with less disapproval from the general public. Just wait until marijuana becomes legalized. Big bonanza for the state.
Isn’t this another example of government rewarding the big corporations and making it very difficult for small businesses to succeed?
Is this not CAPITALISM? Survival of the fittest. The weaker will fail and the stronger prevail. Look what happened to bookstores and record stores. Smaller hardware stores. GONE. Lost the battle to Amazon and Home Depot/Lowe’s. The present situation with liquor prices in the State of Connecticut is more similar to the principles of SOCIALISM. WHICH WAY DO WE GO?
What about a new headline?
“MALLOY LOWERS THE PRICE OF GOVERNMENT TO TAXPAYERS”?
He has all the tools, the financial and service data, and the projections of what may happen if nothing is done (and no new expenses are added) just as most governmental execs do. What prevents that headline from becoming reality? Is it Jim Croce singing “Time in a Bottle”? Is it concern with the ‘voice of the people’ that rises whenever their special interests become a lesser priority? Time will tell.
The conundrum is taxpayers expect and demand more from government. Nothing is free. EVERYTHING must be paid for.
The package store lobby represents the mom-and-pop stores in Podunk and East New Bumfuck. Capitalism works best when there is competition.
Having prices set by the state (including taxes) is NOT capitalism.
All I know is every time I drive my kids to camp in Maine/New Hampshire, I always stop in to see if I can get better deals on my favorites in the border stores. I’ve found for the last 5/6 years whiskey is cheaper in Fairfield and Bridgeport than it is in New Hampshire or Maine! Leave the liquor alone Dannel, you haven’t a clue what the economy needs.
The only reason Malloy is going after the package stores is because of Total Wine and Bevmax. The math hasn’t added up once over the last four years he has been challenging the existing rules. In the first year of Sunday sales the state actually collected LESS tax revenue. Now he’s selling over a million dollar increase in tax revenue by lowering prices. Either everyone in the state has to inch closer to alcoholism or NY will have to invade the state in droves to raise that money. Ask yourself these questions; does lowering the cost of your Budweiser or Jim Beam or Cabernet make you drink more of it? And have you ever driven even an extra mile to save a lousy $1 on these same items? I’m guessing no. That’s why they will try their best to put your local shop out of business. It’s just Walmart or Walgreen’s but for booze.