Initiative 1100 is being promoted as an initiative to modernize Washington’s liquor laws by privatizing spirit sales and getting rid of the state-run liquor stores that everyone loves to hate. But, there is more to it than that. The full press release on how it affects the Washington craft brewing industry is below, but here are a few summary points:
1) Many voters see this as a chance to privatize the liquor industry in WA. But, they don’t realize the threat is in the part of the initiative that completely deregulates the WA beer/wine/liquor industry.
2) Currently, if Brewery A’s product is sold in WA it is the same price for all retailers to buy it. If this initiative is passed, larger stores (such as Costco, large grocers, etc…) and restaurants/bars will be able to obtain significant volume discounts, putting smaller local businesses at a competitive pricing discount. This also opens up the market to stores like BevMo and Binny’s, liquor warehouses in other states that dominate the market because of their volume. While this may be a good thing for bottom-line prices to consumers willing to buy from large retailers, it could be bad if you like having that local bottle shop around the corner from you and having a large selection of local brews.
3) For local breweries, they may be expected to cut their sale price and give more freebies to bars/retailers in order to compete for shelf/tap space. As a result, these small breweries may make less money and may not be able to compete.
4) Distributors are left in limbo. The initiative removes the three tier system and all breweries will be able to directly distribute to retailers, if they so choose. Many bars already choose to buy beers from a single distributor for one reason or another, now they may be given deep discounts to buy from a single brewery, such as MillerCoors or AB, further limiting your selections. The three tier system has always been a gray area to me, as there are many local breweries that already self-distribute legally….many people cite that the repeal of the three tier system is a great thing for small breweries who want to distribute their own product, but some already do this, yes? Someone feel free to jump in and explain here.
If anyone has an alternate view on this, I’m all ears. I don’t pretend to be an expert on these matters. Please feel free to leave comments below. But, if no one can convince me otherwise, I’ll be voting NO on Initiative 1100.
Here is the full release from the Washington Brewers Guild:
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 RCWs, 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 beer enthusiast:
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. A reduction of microbrew presence in the marketplace would have a disastrous effect on our burgeoning craft beer culture.
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 beer enthusiast:
I-1100 would legalize Tied-Houses (alehouse owned by a brewery, selling only their products) moving Washington State towards the now failing English Pub system. Those breweries not willing or able to compete with large producers’ deep pockets will be forced out of the marketplace, eliminate jobs 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 beer enthusiast:
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 AGAINST the deregulation of the entire alcohol industry!
Vote No to preserve the vitality of the Washington Craft Brewing Industry!
Vote NO on INITATIVE 1100
Mark your calendars for August 7 and August 8, when 
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