Wednesday, December 14, 2011

HARD LIQUOR FLOWS INTO COSTCO....BUT NOT IN THE GREAT WHITE NORTH

To say that there are two kinds of states in America...control states and non-control states is like saying there are two kinds of people in this world. But one of the 21 control states has just relinquished....uh...control.
After 80 years, Washington State has approved a bill that will dismantle the state control of the sale of liquor not only at the retail level but at the wholesale distribution level as well.  Of course for those of us living in the Great White North, which is a control country, divided into provinces and territories, this is an event of inconceivably, massive, bureaucratic destruction.  Even in the great, white provinces, Alberta and Quebec, the most ideologically independent regions of Canada, where retail sales of alcohol are more or less in privately owned stores, the provincial governments maintain a monopoly on the wholesale distribution of all booze.  Of course the changes in Washington State won't lower taxes on booze but they will lower prices on hard liquor as the highly competitive retail stores such as Costco will bring efficiencies to the market that are as alien to government liquor stores as tax free booze is to Canadians.  But even in post control times in Washington State, overall, it's still, by American standards, a high alcohol tax stateTwo Buck Chuck is Three Buck Chuck in Washington State for example.  Even though wine sales are not controlled like hard liquor sales the tax is still high compared to many states.  Nevertheless, ordinary bottles of Gallo table wine are 3 for ten bucks at the Texaco station in Pt. Roberts and similar bottles are 12 dollars EACH at the bottle shop 10 minutes drive north in sunny Tsawwassen.  When the hard liquor flows into Costco like an ethanol tsunami, Canadians will salivate at the thought of $25 US gallons of Crown Royal in the kind of bottles that weaken the party knees of Canadians....a bottle with a handle on the side!
Oregon, celebrated by Vancouver Camra members and others as a mecca for craft brewed beer also remains a control state for hard liquor and is a high alcohol tax state as well.  Oregon has deregulated some parts of its liquor laws to make it easier for craft brewers, vinters and distillers get into the market and there are those who would like the river of de-control to flow all the way to sunny California, the Eden of cheap booze where Two Buck Chuck actually costs....two bucks!..
Again, all states are low tax states compared to Canada where provincial governments gouge consumers deeply and pour the BILLIONS in taxes into the black hole of general revenue.
So what does all this mean for the average, frozen Canuck who wants his booze and wants it without having to make a mortgage sized payment every month to get it.   One way is make your booze at home in the kitchen or use a u-brew service.  This won't solve the $65 dollar wine price at restaurants, nor the $10 dollar pints at the pub.  It  won't fix the $50 round of tequila shooters at the night club either but what it can do is eliminate all or most tax paid on all other booze drunk. Other than that, Canadians nation wide can only continue to look south across the 49th parallel as we have done for decades, at a land awash in cheap booze and say "tax me I'm Canadian."