Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
02.05.2013  
 

New Plan to Privatize Pennsylvania's State Stores

Proceeds from sale to add $1 billion to education

 
by Hudson Cattell
 
 
tom corbett pennsylvania governor
 
Tom Corbett is the latest in a line of Pennsylvania governors to attempt to topple the state liquor monopoly.
Harrisburg, Pa.—On Jan. 30, Pennsylvania Gov. Tom Corbett unveiled a new plan to end the state’s monopoly over the sale of liquor and wine. According to this proposed plan, closing the state’s 620 stores and auctioning off 1,200 wine and liquor licenses would generate approximately $1 billion in revenue over the next four years to finance public school education.

Gov. Corbett’s proposal would nearly double the number of outlets for wine and liquor compared to the current number of state stores. Of the 1,200 licenses, 800 would be for large retailers such as box stores, with 400 licenses for smaller businesses such as convenience stores and drug stores. Beer distributors, which are not part of the state’s monopoly, stand to benefit from Corbett’s plan because they would be allowed to sell beer in smaller quantities than by the case. In addition, they could apply for the wine and liquor licenses and thereby become the only places where customers could buy liquor, wine and beer in one location.

If Corbett’s plan is passed by the legislature, it is estimated that the closing of state stores could begin within six months and be completed within the next year. Taxes on alcoholic beverages would remain unchanged, and prices consumers would have to pay would be little changed.

A history of attempts
Past Pennsylvania Govs. Tom Ridge and Dick Thornburgh tried unsuccessfully to end the state’s liquor monopoly. When Corbett became governor two years ago, he made privatization a priority, and House majority leader Mike Turzai led the effort to pass the necessary legislation. When he was unable to get the support of the House, he discontinued the effort.

Corbett’s second attempt has a new twist in that the proceeds from his new proposal would be earmarked for the state’s public schools. The state faced financial problems when Corbett took office, and his budget heavily trimmed state support for public education. School funding remains a problem, and the prospect of $1 billion for education could win additional support for privatization. Also working in Corbett’s favor is the formation of a grass-roots Coalition to End the Liquor Monopoly, which was announced in advance of the governor’s speech. Also backing Corbett’s proposal is the National Federation of Independent Business.

Opponents to effort
Opposition to the proposal surfaced quickly, including long-time opponents such as the state store employees union, which claims that closing the stores would put thousands of people out of work. The Pennsylvania State Education Association, the largest teachers union, came out against the proposal, saying that Pennsylvania students shouldn’t have to count on liquor being available on every corner in order to have properly funded schools.

Other groups have called the privatization plan shortsighted, saying the estimated $575 million in revenue from the sale of the state stores—and the $225 million from auctioning off the new licenses—is too little considering that the state stands to lose $550 million annual markup on sales in the state stores. But Gov. Corbett has heard all this before. “I want Pennsylvanians to enjoy the same convenience that virtually every other American today has,” he said.

The day that the state monopoly ends may be inching closer, but it remains to be seen if privatization will happen this year.

SHARE »
Close
 
Currently no comments posted for this article.
 
CURRENT NEWS INDEX »


 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
info@winesandvines.com
Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
July 2014 $557 million
5%
$7,577 million
6%
July 2013 $533 million $7,128 million
     
Direct-to-Consumer Shipments » Month   12 Months  
July 2014 $61 million
9%
$1,674 million
10%
July 2013 $56 million $1,517 million
     
Winery Job Index » Month   12 Months  
July 2014 312
10%
222
19%
July 2013 283 187
     
 
MORE » Released on 08.15.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • August 29-31
     
    Sonoma Wine Country Weekend
     
  • August 30 - September 1
     
    Columbia Gorge Open House Weekend
     
  • September 5-6
     
    Windy City Wine Festival
     
  • September 11
     
    Women for WineSense "Women in Wine"
     
  • MORE »
 

READER COMMENTS
 
Article: Ledger David names first winemaker »
 
What a joy to have Kiley on the team! A lot of exciting things happening...
Reader: Guest
 
Article: Useful Spanish for Wine Harvest »
 
you misspelled "zona" under Loading Area
Reader: Guest
 
Article: Early 2014 Grape Harvest Begins »
 
Thanks for mentioning Temecula and the South Coast appellation in your article. It is great...
Reader: Guest
 
Article: Wineries May Lose Internet Domain Dispute »
 
All these arguments could be levied by any industry associated with any gTLD, new or...
Reader: Doug Barnett
 
Article: Wineries May Lose Internet Domain Dispute »
 
Do brands get hijacked now? Even though .wine does not yet exist, are there false...
Reader: Larry Chandler
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2014 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
LEARN MORE »
 
 
Wines & Vines Magazine
 
 
LEARN MORE »
 
SUBSCRIBE »
 
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
 
LEARN MORE »
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Harvest Help
 Sebastopol, CA
Winemaking and Production
 Customer Service Repre...
 San Rafael, CA
Sales and Marketing
 Business Development M...
 Santa Rosa, CA
Sales and Marketing
 Tasting Room Employee
 Healdsburg, CA
DTC, Tasting Room and Retai
 Central Region Manager
 Chicago, IL
Sales and Marketing
 Wine Educators
 Rutherford, CA
DTC, Tasting Room and Retai
 Wine & Spirits Sales C...
 Crested Butte, CO
Sales and Marketing
 Viticulturist
 Livermore, CA
Vineyards
 Order Processing Clerk
 Napa, CA
General Administration and
 Retail Sales Professio...
 San Francisco, CA
DTC, Tasting Room and Retai
 
More Job Listings >>
Follow Us On:
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Digital Edition

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2014 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.