Want to buy beer and wine from Giant or Weis or Wawa?
You may get your wish as Gov. Tom Corbett announced Wednesday plans to auction off the state's wine and liquor stores with proceeds -- possibly $1 billion -- going to public schools, multiple sources reported.
Corbett said his plan to privatize the liquor stores would sell off both the retail and the wholesale operations of the Pennsylvania Liquor Control Board, and allow customers to buy wine and beer in supermarkets, convenience stores, restaurants and taverns.
That got a mixture of reactions from people on Nazareth Patch’s Facebook page Wednesday.
What is your take on liquor privatization? Tell us in the comments section below.
Christine McDevitt Burke said liquor privatization should have happened years ago, while Patricia Mullen Dybalski exclaimed, “Wawa and liquor [are] happy together!"
Not everyone is thrilled, however. Bridget Bellis-Weiss pointed out that the closing of state stores would also mean lost jobs.
And then there are Pennsylvania residents who choose not to drink alcoholic beverages. “[Liquor privatization] will have no effect on me personally since I do not drink alcohol,” Mia Mecleary said.
The Greater Lehigh Valley Chamber of Commerce and its Public Policy Committee, through Alison Miers, vice president of Easton Initiatives and a member of the Business and Commerce Association of Forks Township, released a statement:
"The Greater Lehigh Valley Chamber of Commerce doesn't have a formal stance," Miers said. "However, I would say that we commend the Governor for putting this entrepreneurial proposal on the table. The Chamber is built on the spirit of enterprise and there are certainly a number of members who have interest in buying into an opportunity like this. As always, jobs are a concern but we look forward to learning more details as the plan is debated in Harrisburg."
The selection is better in the private stores and it promotes competition, which benefits the consumer. Very happy with this development.
Iowa went private with retail operations of wine in 1985, and liquor in 1987. West Virginia privatized liquor retail operations in 1991. Both states earned less than $20 million each. Expected windfalls never materialized. In 1986, $71.6 million net profit was sent to Iowa coffers. In 1987 - $43.6 million. Cash flow did not return to pre-privatization levels until 2004. They chose to retain wholesale operations, because they would have lost $60-70 million/year. http://www.pennlive.com/editorials/index.ssf/2010/12/dont_toast_yet_to_pa_liquor_st_1.html: http://voices.washingtonpost.com/virginiapolitics/2010/09/as_we_reported_this_weekend.html: In 2004, Maine picked up a quick $125 million for a 10 year lease of their wholesale operations, but since, has lost over $100 million in profits due to revenue sharing with the wholesale distributor. http://www.mainebiz.biz/article/20110725/CURRENTEDITION/307259998: In 2012, we know that Washington only earned $150 million for wholesale rights, $30.8 million for their existing stores, and a new liquor/wine/beer license only costs $166.00. Last month, the governor’s windfall estimate was $1.6 billion. Today it is $1.0 billion. He is going in the right direction. But ironically, both the governor’s billion dollar number and the real market comparables are deal killers.
Modernization = Privatization
Though I have only stepped into our local store twice in over 25 years this is a step in the right direction.