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: