During the 2009 gubernatorial campaign, Bob McDonnell said he wanted to investigate selling Virginia’s state liquor stores to private owners.  Many of us went nuclear at the time but figured he would move on past that bad idea.  Apparently we thought wrong.  In fact, an article in the Washington Post slipped right past me on May 17.

From the WaPo, in its entirety:

Anita Kumar

Gov. Bob McDonnell’s administration has been quietly meeting for months with members of the alcohol industry and others in the community who would be affected by his proposal to privatize liquor stores.

Eric Finkbeiner, the governor’s senior advisor for policy, has been talking informally with representatives from the Restaurant and Hospitality Association, Diageo Beverages, Miller Coors, Associated Distributors, Retail Merchants Association of Virginia, Virginia Wine Wholesalers, Distilled Spirits Council of the United States, Beer Wholesalers Association, Total Wine, Virginia Wineries Association, Wine Institute, Sazerac (which owns Bowman Distilleries in Virginia), Virginia Retail Merchants Association, MADD, public safety organizations and faith-based groups.

McDonnell recently formed a commission on government reform and restructuring, which will consider, among other proposals how the state could sell the state’s 350 liquor stores, which he pledged to do on the campaign trail last year.

Finkbeiner and his working group will bring possible ideas to the commission, which is charged with providing initial recommendations to McDonnell by July 16, and writing a final report by Dec. 1.

McDonnell estimates the sale of the ABC stores could bring in as much as $500 million for much-needed road improvements, but his critics argue that any one-time proceeds would be offset by the permanent loss of $100 million in annual revenue that goes to other state services.

Last week, at a public forum focused to kick off the government reform effort, McDonnell said he would not support holding a referedum to decide whether the ABC stores should be privatized.

“For 70 years, we’ve distributed beer and wine in every 7-Eleven, every Food Lion. But we’ve controlled the distribution of spirits,” he told the crowd of more than 100 people. “From a free market stand point, it doesn’t make sense to continue to control only one part of the distribution.”

McDonnell will call the General Assembly back to Richmond this fall for a special session to approve his recommendations if he can build support for some of them. <

Virginia has a long history of having state stores that dates back to the end of prohibition in 1933.  The history and accompanying pictures can be found at the following link on the ABC website

 Additionally, Virginia  makes money off the state stores–lots of money and that money goes in to other programs.  See the 2009 annual report.  Download here.   (pdf)

What is McDonnell’s obsession with privatizing our state ABC stores?  Any private industry will have one objective–making money.  Virginia regulates the use of alcohol and its primary objective is not financial.  McDonnell will run in to a big fight if he continues with this tradition-breaking stupidity.

114 Thoughts to “McDonnell’s staff inches toward privatizing liquor stores”

  1. Lafayette

    Private liquor stores and rest areas are both definately Yankee state ways. Last time I checked we were still in Virginia. Who wants drive through liquor stores like the Free State of Maryland?

    Pinko, alcohol is very much a drug! Infact, you can get disability benefits for being a drunk. That makes me absolutely sick.

    I wouldn’t care if the state went back to prohibition. Nothing has seemed to stop the boys in Franklin County, Va. for the last 70+ years.

  2. TP, that must be some sort of right wing code–public employee unions. What do they give a rat’s rear end about who owns our state liquor stores.

    Your comment made no sense at all.

  3. punchak

    Coming here from California in the mid-70s was total culture shock. When we saw “ABC” on a store front, my husband thought is was a toy store! We went in and were handed a booklet listing different kinds of liquor and had to decide from it, what to buy. A person behind a counter went and picked the bottle from one of the many cubby holes. No shopping allowed!

    In Calif. when you were having a party, you could rent all glassware needed when you purchased the liquor. Any unopened bottle could be returned for a full refund. They also sold cheeses, salalmi and other snack foods. – Here, one Sunday morning, we decided to go on a picnic and wanted to pick up some beer. Well, whatta you know, no beer before noon on Sundays. At least, you can now buy wine in grocery stores.

    Private liquor stores will compete with each other; the service will be better, and one doesn’t have to drive to widely dispersed ABC stores. The Commonwealth will still be getting a lot of taxes, it seems to me.

    As an aside – it seems a lot of immigrants, especially Indians, work for ABC.

  4. Mom

    Lafayette, think about the potential for the schools, they could sell excess lands (Stonewall Middle School) to Drive-Thru Liquor franchises and use the proceeds to buy properly located school sites.

    Additionally, just think how much business a certain pickup driver would give the Westgate Booze-Thru.

  5. I expect private store owners will do the same thing–put stores in population areas that will sell most.

    Right now you are part owner of the stores. Why give that up?

  6. marinm

    Mom, you kinda have a point. We could reduce funding for schools further and have them operate there own liquor stands at sport venues (like football, soccer, track, etc.) and then offer the schools profit sharing in much the same way they did for vending machines.

    Man, you guys are making this sound better and better!

  7. Mom

    MH, you’re starting to sound very parochial/provincial and you’re treading awful close to social engineering. The upside if greater free-market opportunities with a lesser/smaller government role that pays for itself in the short and long term.

  8. MoM, It would keep certain folks busier and not fouling (or fowling) up things in the old ‘hood.
    Lafayette and I are going to make the T-shirts saying: Westgate Booze-thru

  9. social engineering? Wouldn’t all those old Virginians be surprised to learn they are social engineers. Sounds like Yankee talk to me. TJ would be rolling over in his grave.

    ps not sure what you really said.

  10. Punchak, I have been to ABC stores for more years than I am going to admit on this blog. I can’t recall ever seeing an Indian working one and darn few immigrants. That is a highly desired job and most employees do not quit.

  11. PWC Taxpayer

    Why I bet if the State ended their rmonoply on liquor sales, the churches would set up their own drive threws. OMG – you could actually buy your booze, wine, beer and potato chips & dip and drop off you tithing all at the same time, in the same place and on the same credit card. Hey, wouldn’t that save gas and end air pollution! You know – those drug stores and grocery stores that sell wine and beer have multiplied and are such a discrace – destroyed whole neighborhoods – drunks hanging around them. Privately owned liquor stores – like privatley owned convieniance stores, gas stations and grocery stores that sell beer will multiply like rabbits and could destroy our traditions.

    BTW, Maryland was not and is not a free state. Just cause its on the letter head don’t make it so.

  12. Check out why it is called the ‘free state.’ (and fear the turtle)

  13. Lafayette

    @PWC Taxpayer
    It has been the state nickname for quite sometime. BTW-I usually don’t call states by their proper name. I rarely refer to my native Virginia as such. I usually say The Commonwealth or here in The Old Dominion.
    http://www.msa.md.gov/msa/mdmanual/01glance/html/nickname.html

    MARYLAND AT A GLANCE
    NAME
    NICKNAMES

    ——————————————————————————–
    Maryland is known as both the Old Line State and the Free State.
    Old Line State. According to some historians, General George Washington bestowed the name “Old Line State” and thereby associated Maryland with its regular line troops, the Maryland Line, who served courageously in many Revolutionary War battles. For a closer examination of the background on this nickname, see: The Origin of the “Old Line State” , by Ryan Polk (2005).

    Free State. The nickname “Free State” was created by Hamilton Owens, editor of the Baltimore Sun. In 1923, Georgia Congressman William D. Upshaw, a firm supporter of Prohibition, denounced Maryland as a traitor to the Union for refusing to pass a State enforcement act. Mr. Owens thereupon wrote a mock-serious editorial entitled “The Maryland Free State,” arguing that Maryland should secede from the Union rather than prohibit the sale of liquor. The irony in the editorial was subtle, and Mr. Owens decided not to print it. He popularized the nickname, however, in later editorials.

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  14. Lafayette

    Mom, I can NOT stop laughing.

  15. Mom

    Lafayette, think of the naming rights you could sell and problems you could solve:

    1. The Stonewall Middle Silver Bullets sponsored by Westgate Drive-Thru Liqours

    2. Combine the need for a minor league stadium with a Bowman Distillery, retail store and tasting room. The only thing you would have to change is the team name, make them Prince William’s “Virginia Gentlemen”. Urk, gag, that brought back some bad memories, copious volumes of cheap bourbon in plastic flasks mixed with warm coke in a Wahoo cup.

  16. PWC Taxpayer

    Wow, have things changed in Maryland, it really did try to be a Free State. Thanks M-H – did not know that!

    http://www.freestateproject.org/taxonomy/term/22

  17. Thank Lafayette. She is the truth discoverer.

  18. marinm

    PWC, the issue I have with FSP is that I believe the best approach is at the county level to show how it could work. Understood why NH was choosen but if it could be done at a county level – let’s say Fairfax – and the rest of Virginia could see how well it worked out you’d have real legs under that movement.

  19. Virginia Gentleman was the bourbon of choice in my house growing up. I guess that tradition was started before my time, Mom. I think the old man used actual glass though rather than Wahoo cups.

    @MoM

    That good old song of Wah-hoo-wah–we’ll sing it o’er and o’er

    It cheers our hearts and warms our blood to hear them shout and roar

    We come from old Virginia, where all is bright and gay

    Let’s all join hands and give a yell for the dear old UVa.

  20. Marin, I don’t know what those initials mean. You call are talking in code. Vast Right Wing Conspiracy time.

  21. Mom

    MH, I prefer

    “From Rugby Road to Vinegar Hill we’re gonna get drunk tonight
    The faculty’s afraid of us they know we’re in the right
    so fill your cup, your loving cup as full as full can be
    for as long as love and liquor last we’ll drink to the U of V
    Oh, I think we need another drink, I think we need another drink,
    I think we need another drink for the glory of the U V A”

    and all of its less than politically correct verses. Funny, first time I’ve done that song sober.

  22. Mom

    BTW, glasses were only used for Maker’s Mark. It was too expensive to waste Maker’s Mark on pledges or bring it to the cocktail parties, err, football games. Besides, if you broke your glass in Scott Stadium what would you use for the refill needed to mourn the spilled bourbon.

  23. marinm

    FSP = Free State Project; an idea of moving 20,000 + libertarians into New Hampshire to govern the state under libertarian principles.

    NH = New Hampshire, United States

    PWC = @PWC Taxpayer

    Doubt it’s Right Wing Conspiracy Time (RWCT) [that’s on Monday after the Lords Prayer and National Anthem] as the Right Wing (RW) *hate* the idea of so many libertarian’s in New Hampshire as that would upset how things work in Congress.

    In response to #57 by Mom.. One of my favorite quotes from [the libertarian leaning] movie Serenity:

    Y’all got on this boat for different reasons, but y’all come to the same place. So now I’m asking more of you than I have before. Maybe all. Sure as I know anything, I know this – they will try again. Maybe on another world, maybe on this very ground swept clean. A year from now, ten? They’ll swing back to the belief that they can make people… better. And I do not hold to that. So no more runnin’. I aim to misbehave.

    Now don’t that just sound like the TEA party? YEEHAW!! Let’s get some.

  24. The YEEHAW came through loud and clear. 😉 @ Marin

    MoM, Vinegar Hill sure isn’t what it used to be. [shaking head}

    I remember the song well….probably before the days when I was old enough to party.

  25. Emma

    I’m with Mom on this one, as I also patronize Fenty stores for hard-to-obtain liquors and cheaper prices, as well as meeting my 1-liter quota on Caribbean vacations–unlimited if you shop in US territories, which allowed us to buy a lot of the booze for our oldest kid’s wedding.

    And yes, I freely and proudly admit my Yankee roots, as much as I love ole Virginny. I was never old enough to enjoy the neighborhood “taps” up north.

    No reason in the world why this particular commodity needs to be so heavily regulated. Incidentally, I’m all for decriminalizing marijuana, too, although I don’t see myself ever having the need for that product. The revenue generated would be a windfall–let employers decide whether they will tolerate usage, as they do now, and let folks make their own decisions and buy a regulated, clean product instead of an adulterated street drug.

  26. Lafayette

    @Emma
    You are the only one so far willing to admit to their Yankee roots. I bet you’ve been a Virginian much longer than you were a Yank. 🙂 Everyone should be proud to admit to their place of birth. I’m VERY proud to be a native Virginian, and am very biased/prejudice when it comes to the Old Dominion. I make NO apologies for that one either.

  27. Emma

    @Lafayette You win the bet 🙂

  28. punchak

    @Moon-howler
    Go east, young lady!

    My nearest ABC’s employees are from Kashmir and Nepal. Another one has a beautiful lady from Laos plus at least two Indians; a third has two sikhs with turbans. – Maybe “furriners” stay away from PWC!

  29. Pat.Herve

    what does privitizing mean – will I be able to open up an ABC store, or will they be restricted to the franchise buyer of the existing ABC stores?

    What makes you think it will be any cheaper if it is run by a private enterprise?

  30. Wolverine

    Heh, heh, heh. When I closed down the computer early this A.M., there was not a single comment on this thread. I come back at 6:30pm and 79 comments. Booze. A Virginia tradition for sure certain!!!

  31. Punchak, It must be something unique to Fairfax Co for sure. When I was a kid, women didn’t work in the liquor store even.

    Pat, good point. Who says things would be cheaper or would stock what you wanted. Would this be a monopoly? How about name?

    Definitely a be careful what you wish for situation.

  32. Wolverine, I was just thinking the same thing. Booze is very much a Virginian tradition. And we Virginians take our stores very seriously. Mr. Howler is a transplant. He agrees with me but I doubt if it is a sword he would choose to fall on.

  33. Poor Richard

    Top five selling brands FY 2008:

    1. Jack Daniel’s 7 Black Tennessee Whiskey
    2. Greg Goose Vodka
    3. Jim Beam Straight Bourbon
    4. Crown Royal Canadian Whiskey
    5. Absolut Vodka

    (Va. ABC website)

  34. Emma

    Grey Goose and cranberry juice, please, with a twist of lime…

  35. Virginian Tradishun? HEY! New Orleanian here! WE INVENTED BOOZE (hic). Well, thass what I heard….

    Louisianian Coonass (Mother was Cajun, Dad was from Miss.) by birth, Virginian by grace of God! And I love the independence that just seems to be absorbed from the air in Virginia.

    I bow to no one on booze tradition! Drive thru booze joints? HA! In New Orleans, when I was 18, one could drive with an open container in YOUR HAND!. Go Cups are not a tradition, but, a necessity. And on the Gulf Coast, where else would you get your beer for the beach? What do you mean ABC store? Heck, I didn’t know what ABC stood for. My liquor stores always said, well, BOOZE.

    While the ABC stores have been a tradition for 75 years, woop de doo. Communism’s been a tradition for about 70 years in China. They both need to go. Alcohol making and selling by PRIVATE citizens has been a tradition in Virginia ever since it was founded! Even I know that a piddly 75 year spell is only a bad habit when talking about VIRGINIA history. I know a family that has been here for 3 generations and their farm is STILL called by the original owner’s name. Their neighbors tell them that 75 years is just a short layover in the neighborhood….

    Just because alcohol is habit forming is no reason for the state to sell it. It already controls who may buy it. And they will still control what can be sold. Remember the “Everclear” ban?
    Yeah, the state thought that banning Everclear would lessen already illegal drinking. Really. So, instead of mixing Everclear to make drinks, one just uses 180 proof vodka.

    Governments are here to play referee, not be in the game. Privatize the ABC stores, just for the principles of free enterprise!

    The nexhxh roundd…sssssss on,onn onnnnn meeee.ee….

  36. Alcohol, Tobacco, and Firearms should be a convenience store, not a government agency……

  37. Poor Richard

    Was surprised my favorite, Virginia Gentleman Bourbon, didn’t make
    the top five. Vodka is un – American or at least un- Virginian.

  38. Cargo, tell us how you really feel. 😉

    Poor Richard, my parents drank Virginia Gentleman. There was always a bottle under the sink. They never kept a bar, just a bottle of VG under the sink. My grandmother drank 4 Roses. They never changed.

    I am surprised that Beefeaters Gin didn’t show up on that list. I wonder how much the top 5 change from year to year?

    Not a single scotch showed up. Cry!

  39. PR, apparently MoM doesn’t care much for VG? Did I understand that correctly, MoM?

  40. List? what list? There was a list?

    Oh, that list. All mixers. Except Jack. And the barbarians are mixing that with Coke or Red Bull. (shudder)

    Now, my list…….depends on what’s left in the cabinet.

    Hmmm, think I’ll go check.

  41. Wolverine

    I’ll have a martini, please. Shaken, not stirred.

  42. Poor Richard

    Correction: Grey Goose Vodka — not “Greg” Goose Vodka.

  43. My lisht…..

    Tullamore Dew
    Eagle Rare Bourbon
    Abelour 10 year old
    Isle of Jura 10
    Laphroig 12
    Knob Creek
    Jamesons
    Aalborg Aqavit
    Stolichnaya (still says “property of the USSR) sealed in wax

  44. Just noticed that I have to replace the Bushmills Single malt and Bushmills 8.

    Gotta keep the Irish balanced between the Bush and the Jameson

  45. Cargo, you sound set up for a lot of damage.

    PR Bwaaahahahahahaha

  46. Nah, most of them are low. Need to refill. It takes a while for me to go through a bottle unless I’m sharing. A few months….

    And I’m the biggest drinker among my friends.

    Since I’m an easy drunk, I’ve always gone for quality over quantity. Can’t drink that much.

    PR???

  47. Mom

    It’s not that I care or don’t care for VA Gentleman because I don’t put it in the same category as a bottle of Jack or Maker’s Mark. Those are “sippin” whiskey, VA Gentleman is a cost effective means to an end be it separating potential pledges from their parents money, separating first year women from their… (well you get the picture) or enjoying Cavalier football during the Bestwick years. It also serves as a fine anesthetic for the bruises one might suffer from falling from the top of the goalposts (while properly attired in a blazer) after a particularly memorable victory over FSU.

  48. I guess my parents never grew up. But they were never liquor snobs. I tended to be more of one in my drinking days. I never cared much for bourbon, once I discovered scotch.

    When was that victory over FSU? 95? I can’t even remember when UVA first played FSU.

  49. Cargo, maybe you need new friends so you look like the good guy.

  50. Mom

    Thursday Nov. 2, 1995, 33-28 Hoos

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