Carolina Journal’s Barry Smith reports here on a North Carolina regulatory issue that makes the state the arbiter of what is “fair” competition.
Distilleries across North Carolina are hoping to follow in the footsteps of the state’s growing winery and craft beer industries, but the law places distilleries at a competitive disadvantage — and they’re asking the General Assembly to pass legislation allowing them to sell small quantities of spirits to visitors.
Scott Maitland, founder of Top of the Hill Restaurant and Top of the Hill Distillery in Chapel Hill, calls microdistilling a “burgeoning industry” in North Carolina that would get a boost from the proposed law.
“We need to take a look at regulations from time to time and update them according to new opportunities or economic need,” Maitland said.
The lead sponsor of Senate Bill 24, Sen. Rick Gunn, R-Alamance, calls his legislation permitting distilleries to sell a single container of spirits once a year to distillery visitors “a very restrictive way to promote a new and growing business in our state” and “a logical step to give these entrepreneurs.”
But there is opposition to the proposal. Local Alcoholic Beverage Control boards would lose out on revenues from those modest sales at distilleries. Some religious groups say the change could signal the first step toward the eventual demise of state controls over the sale of all alcoholic beverages.
Well, we should jettison the control system. Here’s how:
Privatize liquor sales in North Carolina.
Sell the state warehouses and local ABC stores.
Set a flexible formula of sales and excise taxes to keep privatized liquor sales revenue-neutral.
Let people compete for customers. Consumers will benefit through lower prices and more choices. Regardless of what occurs with the legislation discussed in the Carolina Journal story, North Carolina policymakers should rethink the regulatory approach to alcohol.
