Word is out that enough signatures have likely been gathered to ensure that an initiative backed by Costco will make it on the on the ballot in Washington State in November. The Costco backed initiative would transition sales of spirits in Washington State from state operated liquor stores to private retail stores and allow manufacturer to retailer direct sales and volume discounts. 

A second initiative backed by distributors would also move spirits sales from state operated stores to private retail stores, but would preserve the role of distributors in a traditional three tier system, has until July 2nd, to amass enough signatures to make it on the ballot. 

A third group is raising money to oppose any attempts to change the current state administered system. Combined contributions of over $1,200,000 have been reported to the Washington State Public Disclosure Commission in support of and opposition to privatization. 

We have assembled the following information so that you can read the actual initiatives, explore the proponents and opponents, and form your own opinion.

 

1. Initiative No. 1100 was filed by Modernize Washington, is financially backed by big box retailer Costco, and has statements of support from other groups that retail liquor such as the Northwest Grocery Association and the Washington Restaurant Association. 

– Where to Follow updates: Modernize Washington on Facebook     

– Reported Contributions: > $700,000
 

2. Initiative No. 1105 was filed by Washington Citizens for Liquor Reform and is financially backed by alcohol distributors Young’s Market Company and Odem Southern Holdings. 

– Where to Follow updates: Yes on 1105 on Facebook

– Reported Contributions: $400,000
 

3. Keep our Kids Safe is leading efforts to preserve the existing state operated system. Washington Association for Prevention of Substance Abuse filed fund raising reports for Keep our Kids Safe with the Public Disclosure Commission. The reports identify the union that the state liquor store employees belong to, United Food and Commercial Workers as the source of the funds. UFCW 21, with the endorsement of other organizations, has issued a fact sheet outlining rationales for preserving the current system of state run liquor stores.

 – Reported Contributions:   $38,000

 

We will report back in a few weeks to let you know if one or both privatization initiatives make on to the ballot and the status of efforts to promote preservation of the existing state operated system.   

Photo of Susan Johnson Susan Johnson

Susan M. Johnson focuses her practice on issues facing the food, beverage and hospitality industries. She counsels beer, wine and spirits producers; retail store, restaurant and hotel chains; sports and entertainment facilities; cruise ship lines; and contract food service management companies on liquor…

Susan M. Johnson focuses her practice on issues facing the food, beverage and hospitality industries. She counsels beer, wine and spirits producers; retail store, restaurant and hotel chains; sports and entertainment facilities; cruise ship lines; and contract food service management companies on liquor licensing, sales, distribution, advertising, administrative violation defense and regulatory matters related to changes in corporate ownership and governance. Susan also works directly with industry associations, in-house counsel and other law firms on complex transactions, litigation consultation and legislative initiatives involving alcoholic beverage issues. Susan is co-chair of the Stoel Rives Food, Beverage & Hospitality group. Since 2014, she has been listed by Chambers USA as one of “America’s Leading Lawyers for Business” (Nationwide) in the Food & Beverages: Alcohol practice area.

Click here for Susan Johnson’s full bio.