The good in Idaho liquor law

As the New Year starts and the State Legislature starts to gather and plan its session for the coming year, the subject of liquor law and the potential for deregulation always seems to come up. As we have in past articles, we continue to urge caution as the debacle in neighboring Washington state shows it is a far more complex and nuanced subject than many acknowledge. For now, the groups that supported the law so heavily in Washington seem to have their attention focused on Oregon for the coming election cycle - not surprising, given Oregon's larger population versus Idaho's.

Here in the shop, and when we are out and about at events, we still hear stories about how expensive the Washington law 1183 really has been for consumers. Many have told us stories of travelling to Washington to purchase alcohol, beer and wine, responding to ads touting compelling prices, only to leave their order at the checkout stand when they see the alarming total for all, once the hefty state taxes are applied. We know, too, that for spirits, the Idaho State Liquor stores located close to the border have seen large increases in sales volume as folks cross the state line to take advantage of the lower prices.

As we contemplate changes, though, it seems that we should acknowledge the positive parts of our law here in Idaho and focus on crafting a law that keeps the positive intact, while also striving to implement changes that help consumers. All who sell wine and beer in Idaho pay the same amount: there are no volume discounts. So, whether you are a large retailer, a small shop, or a restaurant, we all pay the same, and those prices are posted with the state. The Idaho law allows for a small split case charge of $0.20 per bottle, whereas in Washington post 1183, that charge is not regulated at all. Currently, only a couple of distributors even apply the $0.20 surcharge.

This is huge for wine consumers wishing to try a single bottle to ensure they like it, prior to buying it in size. As our law exists now, we can and frequently do order single bottles for customers, giving them the opportunity to try a bottle at the same retail cost it would be if they were ordering and buying a large quantity. This part of the law clearly should be kept as it levels the playing field for all, consumers and businesses alike.

Idaho law also requires that any wine offered to one business be offered to all who would like to buy it from one of our state licensed distributors. This avoids the special treatment of creating things like "restaurant only brands."

It also creates the best environment for consumers, as you have the freedom to purchase your preferred bottles from whomever you like. And since the price is same at the wholesale level, it allows all retailers and restaurants to price the product at what their business model dictates.

Idaho law also restricts the use of the retailer's name on the label, further supporting the premise that what is offered to one business must be offered to all. This avoids the private label phenomenon, where you must go back to the same retailer to purchase a bottle that you previously enjoyed. This causes all of us to compete for the wine consumers' business as all wine is available to every business, and pricing is disclosed and consistent at the wholesale level.

Idaho law also clearly delineates the different roles of importers, distributors, retailers and wineries. Each of these businesses provides vital services to parts of the market and while there are benefits to opening up this structure, it ought not to be eliminated completely. The distributor network provides for fair and equitable access to wine for all businesses and consumers alike, which ultimately benefits consumers by providing the full array of wine choices.

While increased access to spirits beyond the state liquor stores would be more convenient, the revenue the state receives from these stores will need to be accounted for and ultimately replaced with another revenue source that almost certainly will be tax-based. Acknowledging this important revenue stream for the state and retaining the positive parts of our state liquor law is vital to crafting smart legislation and avoiding what so far has been far less positive than promised in our neighbor to the west.

If there is a topic you would like to read about or if you have questions on wine, you can email George@thedinnerpartyshop.com, or make suggestions by contacting the Healthy Community section at the Coeur d'Alene Press.

George Balling is co-owner with his wife Mary Lancaster of the dinner party, a wine and table top decor shop in Coeur d'Alene by Costco. George is also the managing judge of The North Idaho Wine Rodeo and is the wine editor for Coeur d'Alene Magazine (www.cdamagazine.com). You can learn more about the dinner party at www.thedinnerpartyshop.com. You can get all of these articles, as well as other great wine tips, by friending us on Facebook: www.facebook.com/#!/dinnerpartyshop.