In November you will be asked to vote on Initiative 1100. The Washington Beer Blog wants to get this conversation started early.
It is the opinion of this blog, as well as the Washington Brewers Guild, that you should vote NO ON INITIATIVE 1100. On the surface, it privatizes the sale of liquor. Yes, the state would finally shut down all of those liquor stores and leave the sale of distilled spirits to private retailers (grocery stores, Costco, etc), but that is not all it will do and that is not why this initiative has made it on to the ballot. Other regulatory changes introduced by Initiative 1100 threaten the Washington craft beer industry.
Don’t be fooled
Privatizing liquor sales is probably a very good idea BUT DON’T BE FOOLED! Initiative 1100 is a wolf in sheep’s clothing. While Initiative 1100 would privatize liquor sales, it would also bring about sweeping changes to other regulations. These regulatory changes negatively impact small businesses and especially the Washington craft beer industry. While we often feel suffocated by regulations and our state’s seemingly medieval liquor laws, some of them actually make sense and have an important role in maintaining a level playing field on which our local brewers can compete.
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Perhaps the most disturbing changes proposed by Initiative 1100 are to the tied-house regulations. In general, tied-house rules regulate how alcohol is promoted and how manufacturers, wholesalers and retailers conduct business with each other. It was originally an English term that refer to a bar being “tied” by ownership or by contract to a specific beer or liquor manufacturer. Our existing tied-house regulations are intended to prevent “pay-to-play” and other unfair practices that give the largest producers, distributors and retailers an unfair advantage.
How effective the state enforces the existing tied-house regulations is a different subject, but eliminating the regulations altogether would create a massively unfair advantage for the behemoths in the beer industry.
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And that’s why this initiative is on the ballot. Not because you and me want to privatize liquor sales; not because we want the Liquor Control Board to focus on enforcement and prevention instead of retails sales; not because we want the LCB to be a more effective tax collecting and revenue generating agency; but rather, Initiative 1100 is on the ballot because the largest players in the industry want to gain an advantage.
Shameless piggy-backers!
The framers of Initiative 1100 shamelessly piggy-backed regulatory changes onto a fundamentally good idea. They know that the majority of us want to see the state privatize liquor sales and they are sneaking in these other regulatory changes because they think we won’t pay close enough attention.
Even if you disagree with our opinion, please pay attention. Don’t let them fool you. Regardless of how you vote, be informed.
Do it for the children
Many of the other opponents to Initiative 1100 will be playing the morality card. They will argue that making liquor available in grocery stores will increase its availability to underage drinkers. They will ask you to vote NO ON INITIATIVE 1100 for the sake of our children. While we usually find ourselves in disagreement with people who use such limp, hollow, and ultimately meaningless arguments to support their cause, we find ourselves allied with them on this one issue. That being said, make no mistakes about it, we oppose this initiative because of the negative impact it will have on small businesses and our local craft beer industry.
While it is hard to understand all of the details of all of the regulations impacted, we stand by our position and we support the Washington Brewers Guild. That’s where we stand – firmly beside the Guild.
Here is what the Washington Brewers Guild has to say about it.
Vote NO on INITATIVE 1100
I-1100 is the greatest threat the Washington craft brewing industry has experienced in a decade.
- Actively being promoted as modernizing liquor laws, by privatizing spirit sales.
- Actually a sweeping proposal that repeals 39 State Laws, enabling the biggest retailers, distributors, and producers to own and give favorable pricing to each other, which would eliminate the level playing field small businesses need to grow and prosper in our state.
I-1100 negatively impacts the craft brewing industry.
Washington State is home to one of the most innovative and fastest growing craft brewing industries in the country. During the last 24 months, throughout the worst economic downturn in our lifetimes, the craft brewing industry in the State of Washington has grown more than in any 24 month period in history. Dozens of new craft breweries have opened, creating new employment opportunities for hundreds of state residents, and capitalizing on the creativity and innovation our state is known for.
What this means for YOU as a brewer:
The majority of the Washington craft brewing industry is small businesses. I-1100 would stunt the growth of our industry as breweries encounter more competition and pressure to give discounts, free product and services to obtain shelf space or handles at big box stores, chain restaurants, and other retailers. Long-term affect: A reduction of microbrew presence in the marketplace would have a disastrous effect on our burgeoning craft beer culture. Small breweries not capable of participating in the race to the bottom would close, eliminating jobs. Washington State ’s reputation as a destination for great craft beer would come to an end.
I-1100 deregulates a prospering, innovative industry.
The problems resulting from Federal deregulation of telecommunication, airline, and banking industries are well known. The affected industries now have reduced competition, less innovation, and benefit only the largest and wealthiest companies. I-1100 eliminates the level playing field that requires consistent pricing for all breweries.
What this means for YOU as a brewer:
I-1100 would legalize Tied-Houses moving Washington State towards the English Pub system, making it harder for small breweries to obtain handles. I-1100 allows beer and wine to be purchased on credit, creating a greater accounting burden as you track down customers with overdue balances. I-1100 legalizes Pay to Play, creating a sales system where money speaks louder than quality. I-1100 allows producers and distributors to give away free draught systems, product, mirrors, neons, store remodels, etc. Long-term affect: Those breweries not willing or able to compete with large producers’ deep pockets will be forced out of the marketplace and close their doors.
I-1100 takes away consumer choice.
The success of the craft brewing industry has been a huge success for the consumers of Washington State . Consumers have literally hundreds of choices of locally made, hand-crafted beers from across our state. I-1100 hurts consumer choice by giving volume pricing discounts to the largest companies, thereby reducing competition. Without the means to compete in the marketplace, small, neighborhood craft breweries will close and consumers will have less choice at their favorite establishments.
What this means for YOU as a brewer:
With a pay to play system, a brewery will be chosen based upon their ability to pay in goods or services instead of upon the merits of their beer. Washington state’s reputation as a destination for great craftbeer will cease to exist as more and more craft handles are replaced by big beer and breweries close their doors.
Vote NO on INITATIVE 1100
