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The end of the ABC store?
Richmond BizSense has info on a proposal to privatize ABC sales in Virginia:
Senate Bill 443 would force the Virginia Department of Alcohol Beverage Control to close its retail operations. The ABC would auction off “package store” licenses to vendors that wish to sell liquor and other alcoholic beverages for consumption off premises.
[…] He said his bill would restrict the location of liquor stores, keeping them a certain distance from churches and schools. Every Virginia locality would have at least one licensed liquor store, but a locality could not have more than one license for every 10,000 residents.
The bill also states that “in addition to the annual state licensing tax, any locality in which a package store license is issued by the Board may establish an annual licensing tax not to exceed 50 percent of the state licensing tax, plus inflation, and to be paid in accordance with the provisions of § 4.1-233 of the Code of Virginia.”
I don’t see anywhere in the text of the bill where the proximity to schools or churches is addressed. Am I missing something?
Inside word is that this bill has no legs.
First of all, there are too many stakeholder groups involved that enjoy the system as is: small distributors, property owners (almost all ABC stores are leased), prevention groups (how are the Baptists and MADD going to feel about this?), educators, and law enforcement. McDonnell may have been elected overwhelmingly, but I have a hard time seeing him being able to deal with all of these interests during his first legislative session.
Secondly, the promises of a short-term windfall for the State’s general fund are overblown. How can $500 million be raised this fiscal year or next through the sale of 350 store licenses? Hint: it can’t. On average, ABC earns $388k in profits per store. Several other states (and provinces, and countries) have dealt with privatization, and the outcomes are always: consumption of alcoholic beverages increases, government revenue decreases. (It should be mentioned that the Obenshain bill could conceivably result in about 720 total licensees. This would likely have the effect of driving down the average profit per store, unless there is some dramatic increase in consumption).
Finally, there’s just no groundswell for ABC privatization. In all honesty, what is wrong with the system? It’s efficient, profitable for the State, prevents underage sales of liquor (98% compliance rate at ABC stores, compared to ~88% in stores licensed to sell beer and wine), and has resulted in Virginians drinking 25% less per capita than the national average (a positive development from a public health and safety perspective.)
David, what have you got against Virginians’ right to drink? What have you got against alcohol in general?
I’d vote for privatization because it would mean a better selection of top quality spirits would be available to the average consumer. State-run ABC store selection is pathetic.
I’d also vote for it because it means less government intervention ; and that is always a good thing.
Eliminate the “nanny state”.
It’s not happening this Session, so you can pretty much ignore this bill. There’s some possibility that it could be tackled in a special session later in the year. Even that will be exceedingly difficult given all of the reasons stated by David above.
In short: cool your jets. It’s not happening yet.
As one of the early proponents of ABC store privatization, I am disappointed at the way the idea has been revised.
The original idea was to have a lottery where the citizens could win the rights to operate a store and that every store would be independently owned. The purpose of promoting independent ownership was to stimulate entrepreneurship opportunities for our citizens.
Instead, Bob McDonnell wants to hand over huge chunks of the operation to his multi-national corporate backers.
SB443 misses the key component of ensuring that our local citizens win the rights to operate a store of their own.
If packaged properly, the State can reap long term economic gains from the operation of these ABC stores by thousands of independent entrepreneurs, however I have not seen any research that any privatization will produce more revenue than the current state monopoly on liquor sales.
I hope they stay the same! The selection at the government road location is great!(The finest Bowman products) Personally, I love “the about to be shot or mugged” feel at the 25th St location! They do amazing things with bulletproof glass. If that is what the state does, I don see how anyone else could be crappier!
If this bill is passed – whether it be this GA session or next – I would hate to see what it will do to the many Virginian’s employed by ABC. I think privatizing is not a long-term answer to budget issues. Won’t it COST money to privatize??
Taken from the Washington Post:
“As for state revenue, selling the licenses to the private sector would generate a one-time lump sum, after which Virginia would lose out on the annual revenue stream from sales. While privatizing could result in many more liquor stores and likely more sales tax revenue in the future, do Virginians want this?…We don’t need the screaming printed or televised advertisements for vodka and other hard liquors that one sees elsewhere. We also don’t need stand-alone big-box liquor stores on the edge of town. The ABC stores in my county are in local strip malls and are very low-key. If I buy something from a local ABC store, I cannot do it with the anonymity that I could at a stand-alone store. This promotes responsibility and moderation.The ABC concept is as valid today as it was in the 1930s. Hard liquor sales should not be privatized.”(quote from Bob Hugman)
Having lived in Maryland for several years, I can attest to the negative impact that private liquor stores have on low-income communities. The town I lived in outside of Washington, DC has a population of 8,000 and three liquor stores, each of which attracted all sorts of problems.
I don’t think that having corner liquor stores in the East End will be a good thing for the community.
I guess that everyone likes that they buy their booze from the folks who educate kids, fill pot holes, sell lottery tickets, collect garbage, and provides the occasional road side rest stop? One stop shopping!
Negative impact of private liquor stores in low income communities? Again, I really believe the 25th st and government Rd ABC store are of a “Monument Ave” caliber. It’s nice to know they advertise what P Diddy drinks in the lobby. Take a look.
I’m glad someone brought up Maryland, because the private stores up there are awful. They run the gamut from bloated warehouses that monopolize local markets to tiny, hole-in-the-wall stores that attract seedy characters and crime. If that’s what privatization will mean for Virginia, then I say no thank you.
I’ve never understood why the state needs to have control of liquor sales. Alcohol isn’t a controlled dangerous substance. Smells like puritanism to me.
As far as the nuisance factor goes (of having liquor stores in low income neighborhoods)why do we allow the actions of a minority dictate the rules for the majority? I reject that.
Alcohol is a controlled substance, and is known to be addictive, cause health problems, and result in broader social problems. These are all features that alcohol shares – although to a far lesser degree – with “harder” substances like opiates and amphetamines. Hence, the regulation.
@ndeplume – I’m not against consumption of alcoholic beverages, and I’m known to imbibe more than my fair share of booze at times. Yes, only about 2,500 products are sold in ABC stores statewide, far less than in non-control states (where as many as 15,000 different products may be available; although in places that have privatized, like Alberta, this increase came mostly in the form of bottom-shelf liquors and cheap malt liquor beverages). ABC can be instructed to diversify its selection without wholesale privatization; in fact, that seems a rather weak reason to scrap a PROFITABLE public service that creates positive public health and safety outcomes over private-sector based alternatives. Judging by your “nanny state” comment, might I assume you still stamp your feet when you have to eat vegetables or make a bed?
@katzenjammer – Yawn. Claiming that alcohol isn’t a dangerous or controlled substance ignores the fact that every State and country in the world to varying degrees regulate drunk driving, age of majority, distribution, and quality of product for safety reasons. Further, your use of the word “minority” perhaps illuminates more about your policy perceptions than you might want it to.
OK David, I know I’m a little slow. But if alcohol is a world wide menace, why do you characterize he ABC as “a PROFITABLE public service that creates positive public health and safety outcomes”? I need a little help with that.
And sorry, but a CDS is something illegal to buy, sell or possess. And alcohol was not illegal to buy, sell or possess the last time I checked. Regulation does not equal criminalization.
Also I am speechless that you would jump to the conclusion that by “minority” I meant Race. Who would even infer that?I’m referring to the MINORITY of people in Church Hill who stand on a corner and drink all day, vs the MAJORITY of the populace who work for a living.
As for my policy perceptions? You don’t know crap about my “policy perceptions”. However, I’d be happy to discuss them over a beer at the Hill.
There is a continuum of regulation for substances, with one end being a complete lack of regulation or prohibition of sales or use, and the other end is a total prohibition against sales and use. “Criminalization” refers to the penalties assessed for breaking the prohibition against the use or sales of a substance; prohibition need not be paired with prison sentences for violations. A state monopoly over distribution and wholesale allows the state to tightly control the type and amount of access of alcohol, with an eye on efficiently providing product while preventing as much as possible the negative outcomes of alcohol consumption.
And yes, profitability of ABC is something that needs to be mentioned, particularly in the context of advocates of privatization stating that selling ABC assets (physical assets, as well as the wholesale and retail monopoly) will result in a significant windfall for the State. ABC returns significant amounts of money to the State’s GF, the pot of money the State uses to pay for education, transportation, and all other programs exclusively funded by fees or federal grants. My back-of-the-envelope NPV of the ABC monopoly is about $2.4 billion over the next 10 years; privatization proponents have not spelled out how their schemes will make up for this revenue, and have yet to provide evidence that a one-time GF boost of $500 million is even possible with a private retail system. When Mississippi’s legislature considered such a scheme in 2004, they concluded that it would result in a net fiscal loss for the state, and would likely increase consumption, underage drinking, and negatively impact several key public safety areas: http://www.peer.state.ms.us/reports/rpt473.pdf
Let me ask you: has the ABC monopoly ever kept you from purchasing alcohol? Has ABC unreasonably infringed upon your rights to consume alcohol?
I just have a hard time understanding what’s so small-c conservative – or even wise – about upending a system that has existed for 75 years for no apparent reason.
Well, I never lived in MS but I have lived in Germany where kids drink when they’re 13. And guess what? Not only do the teenagers not abuse alcohol or wreck on the road, they grow into responsibly drinking adults who understand what alcohol is. The social fabric remains unrent- all with free market alcohol sales.
To your question of has the ABC infringed upon my right or ability to drink? Actually, why yes they have! I wanted white creme de cocoa for a recipe. I went to two liquor stores this past Sunday, to find them, that’s right, CLOSED. When I went to the one on Broad near VCU on Monday, they didn’t have what I wanted because, as previously noted, the ABC store’s selections stink!
I don’t need the moral majority to decide if it’s a sin for me to make tiramisu on Sunday. What’s next? No dancing in school? Girls have to wear pants…?
There are lovely retail chains with good selection that raise plenty of tax revenue without demoralizing the children, the unemployed, or the underpriviledged. I encourage you to go out and see for yourself.
And, BTW- where are you getting that 240mm/year over 10 years from? When you get it off the back of the envelope and onto a balance sheet, let us know.
Pardon my hyperbole. That’s “girls can’t wear pants” :-p
#8-I haven’t been to the 25th street ABC store; it’s out of my way. I’m not aware of one on Government Road–where is it? Government Road and Williamsburg would be just the type of place that an “enterprising” liquor store magnate would be likely to open a store. And that would do nothing positive for the area. More trash, more loitering, more reasons for other businesses to stay away.
The local ABC Store I’ve been to is on Laburnum across from White Oak. It’s clean, no creeps hanging around, the staff is helpful, there are no obnoxious posters, and they have an excellent selection. Katherine, you might well try them for your white creme de cacao.
FWIW, a few years back I searched high and low in five nasty, creepy, decrepit liquor stores in Maryland for a bottle of Calvados. None of them carried it or even knew what it was! Their inventory leaned more towards the Wild Irish Rose variety. I’m fairly certain that if I had asked for white creme de cacao I would have been met with another blank stare.
#14 You go girl! Richmond can be so provincial.
Juliellen #16, as I recall there’s an ABC store down off of Williamsburg Ave. It’s not on Gov’t Rd. Heading out of Church Hill, go east on Main Street, left at the light onto Williamsburg Ave. Then turn right onto Goddin St, past the frisbee field on your left, but before Williamsburg Ave. heads uphill towards the fire station and Powhatan playground, at which point I guess the street name becomes Williamsburg Rd. The phone book lists the store address at 500 Goddin Street, so I guess the store is still there.
I haven’t been there in years, but last time I went there was neither bullet proof glass nor creepy people, just an ordinary self-serve liquor store. Don’t know about selection since I haven’t been there in awhile.
It’s the ABC laws that are stifling business in Virginia, not the ABC stores.
#18, thanks for the info. I don’t know how I’ve missed it, as I go by there quite often. That’s what I like about the ABC stores–they are discreet and well-managed. Many private liquor stores in my experienced are not.
In Pennsylvania, drinkers have to go to the wine/liquor store to purchase either and separate beer stores to buy beer in quantities of 20 bottles or more. This draconian system is designed to prevent single sale, but merely results in a dearth of microbrew selection. At the same time in PA, you can walk into ABC off restaurants, open up a bottle of Jack and drink without being carded. Some states still have dry counties. In California where liquor is sold in grocery stores, gas stations, etc., the selection can be terrible. All ludicrous ways of containing and controlling the sale of “demon booze.”
By contrast, Virginia. Great wine and beer selections in many of our grocery stores. Exhibit B: the very nice liquor store by Ellwood (open on Sundays) has a great selection of liquor including the South African Bailey’s alternative Amarula (which none of my Californian friends had ever heard of) and a lovely selection of high shelf gins and vodkas. It wasn’t that long ago (the 90s) that all ABC stores were closed on Sundays, so I don’t really free oppressed at all. And fyi, if you want to know which stores are open on Sundays, the ABC site provides this info: http://www.abc.state.va.us/storeslist/stores.jsp?chars=%27K,L,M%27
re#18:
that liquor store off of Williamsburg just closed last week. I went in to make a purchase, which I do about once a month at that store, and was surprised to see signs that it was closing the next day. I think it may have to do with potential development down there? The building was leased.
It did have bulletproof glass and a turnstile, BTW. Customers had to ask for their selection, which was very very limited.
There is a “nice” ABC store on Laburnum, in a strip mall across from the Target at White Oak Village.
#22, thanks for the info. I did not know it had closed. Good to know there’s a nice on over at White Oak – across from Target? On the same side of Laburnum? I haven’t seen it out there, so further info would be helpful, thanks.
Address is 4320 S. Laburnum. On the opposite site of Laburnum from the Target. It’s on the Best Buy side.
It’s in the little strip mall across from that Hyatt Place joint, just south of the I-64 interchange with S. Laburnum. It’s behind the Taco Bell.
http://www.abc.state.va.us/storelocatorweb/GetDirections.do?storeId=215&requestKey=storeResultsRequest
No Sunday hours, but they are open Mon-Sat until 9 p.m.
Thanks Guys! I don’t drink a whole lot of liquor at home but when looking for it it’s good to know where to go.