Issue link: http://winesandvines.uberflip.com/i/62409
J ANU AR Y NEWS Washington State Votes to Privatize Costco-backed Initiative 1183 ushers state away from retail state liquor stores and sell their assets, license private parties to sell and distribute spirits, set license fees based on sales, regulate licensees and change regulation of wine distribution." I-1183, backed by Costco to the tune of $22 million, takes the W state out of the liquor business while letting it continue to set policies, issue licenses and enforce regulations. Preparations will begin in earnest in January for the transition, which will occur by June 1, 2012. While the absence of the state from liquor purchasing, distribution and sales is common throughout the U.S., and the opportunities for more flexible relationships with distributors and retailers promise to satisfy the desires of the Family Wineries of Washington State and oth- alla Walla, Wash.—Voters sent the Washington State Liquor Control Board's retail system packing with the passage of Initiative 1183 in the state's general election. Voter approval of I-1183 requires the state to "close Against: 41.26% For: 58.74% ers, fears also exist that the new environment may not be equally beneficial for everyone. Some fear that centralized warehouses will diminish the number of products available to retailers, said Marty Clubb, president of the Washington Wine In- stitute, increasing competition and the financial pressure on win- eries to access available retail channels. Volume discounts are also a concern, because larger retailers handling greater volumes will typically have more clout to secure volume discounts, allowing them to offer lower prices and undercut smaller retailers. Smaller wineries, in turn, may not be able to provide the volumes or af- ford the discounts required, limiting their market access. —Peter Mitham winesandvines.com Learn more: Search keyword "I-1183." Washington's Initiative 1183 Results by County QSEE US AT UNIFIED, BOOTH #1520 20 Wines & Vines JAnUARY 2012