tool name

close
tool goes here

Liquor distributors defend pricing strategy

Washington’s liquor distributors, the target for criticism from the small retailers who bought Washington’s former state liquor stores, don’t deserve the negative assessment, a spokesman for the distributors said this week.

Published: Dec. 16, 2012 at 12:05 a.m. PST
0 comments

Washington’s liquor distributors, the target for criticism from the small retailers who bought Washington’s former state liquor stores, don’t deserve the negative assessment, a spokesman for the distributors said this week.

Aaron Toso said the liquor distributors are operating just as distributors do in other businesses.

The small retail liquor store owners singled out liquor distributors in a News Tribune story last Sunday as the source of some of their financial woes.

Those distributors, because of their exclusive distribution deals with dozens of distillers, have the ability to set prices at whatever the market will bear, they charged.

Toso said while there may not be competition on price of branded products, there is competition among brands of liquor. If one brand of bourbon, for instance, raises its price too high, consumers may switch to another brand that’s a better bargain.

That competitive landscape is the same as it is in less expensive products, said Toso. If a Coke distributor raises prices too high for its cola, then consumers may switch to Pepsi at a lower price.

Distributors, just like retailers, had a few short months to set up their operations before the June 1 privatization date, he said. That brought some initial teething problems.

Those issues, he said, now have largely been worked out.

John Gillie: 253-597-8663 john.gillie@thenewstribune.com

JOIN THE DISCUSSION | Register here

We welcome comments. Please keep them civil, short and to the point. ALL CAPS, spam, obscene, profane, abusive and off topic comments will be deleted. Repeat offenders will be blocked. Thanks for taking part — and abiding by these simple rules. A thorough explanation of rules of conduct can be found in our Terms of Service. If you have any questions, including why your comment may not be showing immediately after you submit it, be sure to visit the commenting FAQ.

CONTESTS

Similar stories

  • The liquor store hangover

    Early this year when the state put its network of liquor stores on the auction block, many small-business people saw it as their path to prosperity. Now, six months after liquor sales were privatized, many of those once-eager bidders, who collectively paid the state more than $31 million for the rights to the state’s former stores, have discovered their adventures in retailing are a road to ruination.

  • Smaller liquor store owners call for new rules in order to compete

    A group representing the owners of Washington’s former state liquor stores says unfair competition is smothering their business and they want the Legislature and the Washington State Liquor Control Board to enact new rules to put them on an equal stance with larger competitors.

  • Bars, restaurants get more options to buy booze

    Until last year, restaurants and bars had one choice for where to buy liquor: state government.

  • Independent Tri-Cities liquor store faces closure because of state fees

    Independent liquor stores that opened after the state handed the reins of liquor sales to private companies seven months ago already are facing the threat of closure.

    New state fees on spirits have cut into the bottom line of small-business owners and increased prices. Many potential Tri-Cities customers are driving to Oregon for cheaper booze.

    At the same time, big box stores such as Costco are eligible for quantity discounts under Initiative 1183 that smaller stores don't qualify for, making it harder to compete with chain grocery stores and pharmacies.

  • Few state liquor store buyers toasting success

    They’ve spent hundreds of thousands of dollars of their own and their friends’ and families’ money buying former state liquor stores hoping to create stable businesses that will create a steady income stream for themselves and their families.