Overview: Governor Josh Stein has declared the proposed minimum liquor price floor is off the table for now. The ABC Commission in Raleigh has tabled the proposal to study effects on bars and restaurants.
The Full Story
A study indicated 97 items would be affected by the price floor, including 60 regularly listed products and 37 special orders. Tequila accounted for 55.9% of the potential gain within this scope. Proposed price floor for a 750ml bottle of Dorado Gold Tequila is $10.95, while the current price stands at $7.45. The proposed price floor for a 1 liter bottle is $13.45.
Projected retail sales revenue increase is approximately $2 million per year, generating about $613,000 in funding for local ABC boards. Commission Chairman Hank Bauer estimated research would take one to two months, though spokesperson Jeff Strickland noted it may take longer than that. Governor Josh Stein stated the proposal was paused because people are struggling with costs of electricity, rent, gas, healthcare, and child care.
What This Means
The study shows that among North Carolina’s top-selling brands, 14.4% of cases were sold to mixed-beverage permittees like bars and restaurants. Ben Popkin, assistant agency general counsel, presented the findings on Aug. 12. He said the price increase would raise retail sales revenue on those items by about $2 million per year. The remaining $1.4 million would be distributed to local law enforcement, alcohol and substance abuse education, and the state’s general fund.
Popkin said the study does not have significant data on assessing the financial condition of restaurants, bars and related businesses in our state. State House Speaker Destin Hall described the commission’s price hike scheme as a bad idea that is half-baked and poorly researched. Jeff Strickland noted public input is critically important to the study process.
Consumer Takeaway
North Carolina residents can currently purchase a 750 milliliter bottle of Dorado Gold Tequila in ABC stores for $7.45. The policy would increase the bottle’s price to $10.95 if implemented, but the proposal is paused.
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