Hey Bartender

Let's start at the beginning. Virginia has had state-run ABC stores for over seventy-five years. If you know your history, then you know that Prohibition ended just over seventy-five years ago. At that time, President John D. Rockefeller determined that states should control the sale of liquor in an attempt to prevent the moral decay of our country. Virginia is one of eighteen states still living in the shadow of Prohibition, where the monopoly of the wholesale and retail distribution is still in effect.

One of the reasons that Virginia continues its control of alcohol is that it believes that underage drinking, alcoholism, and DUI arrests can be controled better this way. Over the past seventy-five years, however, statistics have shown that the states with private liquor sales do better in all of these areas than the states that control their liquor sales.

One of the many reasons to privatize the sale of liquor is that it curbs a lot of unnecessary government spending. Currently, the administrative costs alone are estimated at $120 million per year. So, what are the benefits of privatizing the sale of alcohol? I mentioned three already: less underage drinking, fewer DUI arrests, and fewer people being diagnosed with alcoholism -- allegedly. In addition, consumers would benefit from the competition that would ensue. Things like lower prices, more convenient hours, and a wider selection would change the face of alcohol sales as we know it here in the Commonwealth.

As it stands now, the hours are at your local ABC store are set by the state. The state recognizes all state and federal holidays and gladly gives their employees those days off with pay. You are probably well aware of the inconvenience of this state of affairs when you run out of your favorite liquor or spirit during your holiday celebrations. Also, since the ABC stores are run by the state, the prices are set by the state. That means that no matter where you go, the prices and selection are almost identical. This doesn't seem bad until you realize that this means that there is no real reason to offer new products when they become available. Those fortunate enough to live in states that don't control the sales and distribution of liquor know the thrill of walking into their local liquor outlet to discover that their favorite distiller has released something new. If ABC store #123 doesn't have what you want, the chances are good that ABC store #456 doesn't have it either. But, how about our friends in northern Virginia? If they don't find what they need, they can just drive across the border to the District of Columbia and find what they want -- probably for a really good price. Our military friends have the advantage of going to what's known as the Class VI seven days a week to purchase what they need at reduced prices and without the added taxes that we must pay.

Now, if ABC stores #123 and #456 were privately owned, their friendly competition would benefit us. Prices would be set so that the stores could compete for your business. The selection at each store would be wider, giving us better choices, again, reasonably priced and probably during hours that don't conflict with your work schedule.

Virginia Delegate Bob Brink once said, nobody considers the sale of distilled spirits to be a core function of government. If that is the case, then why does Virginia still do it? The monopoly only hurts the taxpayer and the consumer. Taxpayers in Virginia pay the expense of each retail establishment, plus the salaries, pension, and benefits of hundreds, if not, thousands of ABC employees. In addition, residents suffer because they lose out on local, corporate, and real estate taxes that aren't paid because we have a state-run operation that absorbs those costs.

The fear that Virginia will lose money by privatization is unfounded. It is estimated that Virginia loses 15-20 percent of liquor sales to its neighbors, Washington, D. C. and Maryland. Consumers who live close to those areas take advantage of lower prices, convenient hours, and a wider range of selections. Additionally, the sale of licenses to wholesalers and retailers is projected to be in the neighborhood of $500 million, up front, which will allow the state to leverage billions of dollars for useful things like road maintenance and education. Private retailers are also required to pay corporate income and property taxes which represent another revenue stream for local and state governments. Did I mention the revenue from licenses issued to restaurants and bars? There is no way around the fact that privatizing the sale of spirits in Virginia or any of the other 17 states that still control these sales doesn't make sense.

So, there you have it -- the privatization of spirits uncomplicated. I wasn't around for Prohibition, so I'm not sure why I'm still being haunted by its ghost. The statistics definitely make it clear that privatization is the way to go. The fears that were the catalyst for setting up a state-run system in the first place were never realized. For me, at least, it seems that now is as good a time as any to exorcise the ghost and make the leap into the twenty-first century. Agree with me or not, you have to at least see that the cost to those who live in Virginia suggests that the move to privatization makes sense. As always, if you're enjoying spirits purchased here or from one of our neighbors, please drink responsibly. Until next time...prosit!!!