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It’s time to privatize state liquor stores

Monday, February 8th, 2010

Of America’s 50 states, 18 are control or monopoly (as of 2005), meaning that their citizens can buy alcoholic beverages, including wine, only in state-owned stores. This is a result of the Repeal of Prohibition, when Congress decided on a states-rights approach, as opposed to a national policy, for governing the sale of alcohol.

The system of state monopoly stores has never worked well, depriving consumers of choice and, in many instances, resulting in drab, poorly run venues. It’s odd, too, that so many monopoly states are solid Republican, given that party’s traditional defense of free markets and suspicion of Big Government. For many complicated reasons (not the least of which is that the public hasn’t clamored for an end to monopoly control), changing the system was never high on anyone’s agenda.

That has now changed, for a simple reason: The economy. Nearly every state in the union is bankrupt or close to it. Governors and state legislatures are desperately seeking new sources of revenue. Loathe to raise income taxes, they’re looking at “creative financing,” such as fee and license hikes. Some officials in control states also are thinking what once was the unthinkable: privatizing alcohol sales.

In Washington State, lawmakers have introduced a bill “that would have Washington get completely out of the liquor business, allowing an unlimited number of people to buy licenses to sell liquor, as is done in California.” The idea is that, by selling the state’s warehousing facilities, and by allowing the market to determine prices, Washington could nearly double the $320 million alcoholic beverages brings in annually.

Down in Mississippi, which is suffering from its worst budget crisis since the Great Depression, Republican Gov. Haley Barbour has called for legislation “to privatize the wine-sale functions” of the state’s Alcohol Control Division. In Vermont, a state Senator has introduced a bill “to disband the department of liquor control.” In Virginia, “Bob McDonnell, Virginia’s new Republican governor, made privatization of his state’s liquor stores a key plank of his campaign last year,according to the Wall Street Journal, which also reports that McDonnell’s idea “is opposed by the Virginia Assembly of Independent Baptists.” And in neighboring North Carolina, the state’s Republican candidate for Governor, Pat McCrory, similarly “said it’s time for North Carolina to get out of the liquor business.”

Sounds like a road to Damascus moment for Repubs. One of the reasons opponents are against this entirely rational, self-interested plan to privatize alcohol sales is that minors would supposedly have easier access to liquor. If you think about it, that’s a bogus argument. It presupposes that a state store employee is less likely to sell liquor to a minor, and that a private store employee is more likely to. It seems to me the chances are about equal in both cases, and incapable of resolving further.

It’s time for America to do away with state-run liquor stores. I mean, where are we, the U.S. or Syria? It would harm no one, and will help financially embattled states raise a little extra cash. I am calling on all politicians in control states to put their money where their mouths are. Are you in favor of market-based capitalism, or of the heavy, controlling hand of government?

Wine, sex and Mormons: an inquiry

Friday, September 25th, 2009

As everyone knows, I try my best to steer clear of controversy on this blog. But these are times that try the soul. Here’s something that just makes me want to scream!

Rough play? References to wine, sex prompt BYU to cancel U of U production of Greek play

That’s the headline in one media outlet reporting how Brigham Young University, the Salt Lake City school owned by the Church of Latter-day Saints (Mormons), canceled a performance of Euripides’ Greek tragedy, The Bakkhai, just hours before it was scheduled to be shown.

Let’s break it down. The Bakkhai (sometimes Bacchae) premiered in Athens in 405 B.C. It is a morality tale, relating a fierce confrontation between Dionysus, the Greek God of wine, and the temporal King of Thebes, Pentheus. Dionysus calls upon the people to celebrate his annual Festival in the usual way, with wine-drinking, dancing and sex. Pentheus, a rather conservative sort who was the ancient Greek equivalent of the Family Research Council (or perhaps Mike Huckabee is a better example), doesn’t believe it’s right for the people to so indulge, and orders Dionysus’s arrest. However, the table is turned on Pentheus, proving that it’s a terrible idea to challenge a God, particularly one so popular with the people. Pentheus is torn apart by his own mother, who exhibits his head as a trophy. The Bakkhai has been called “the most horrific, powerful and theatrical of all Greek tragedies.”

The production, staged by the University of Utah’s Department of Theatre and Media Arts, had been scheduled as part of its 39th annual Classical Greek Theatre Festival, and was to have been shown at BYU. You can imagine the dismay of the 350 BYU students who purchased tickets when they were abruptly refunded their money and told the play wasn’t happening.

What prompted BYU to muzzle it? University officials knuckled down on the Univ. of Utah, and who knows what local political and religious pressures they brought to bear. The play’s producer, James Svendsen, offered this lame excuse: the production “does not really fit the BYU proscenium arch theater nor their audience.” If you believe that, I have a Tabernacle Choir to sell you. Is it really credible that the producer would have discovered his play didn’t fit onto BYU’s stage hours before it was to open? And in what way did the play not “fit” BYU”s audience? Isn’t that a judgment that the 350 people who bought tickets should have made, rather than had imposed upon them?

What really freaked BYU out was the “gender-bending in the casting” and “abundance of phallic symbols and cleavage” in the play (this, according to Svendsen). In the straight, white, male-dominated Mormon culture, any artistic expression, no matter how rooted in history, that doesn’t accord with their idea of correctness must be quashed, censored, driven underground. (And don’t forget, the Mormons were behind last year’s Proposition 8 campaign in California.)

The Mormons were also clearly obsessed with the focus on wine, notwithstanding its place in the Bible of both the Hebrews and Jesus. Wine is evil, because it lets people relax and be themselves instead of following some imposed mania, and so it must be resisted!!

Look, we’re not talking about some weird performance artist covering herself in chocolate and licking it off, or about the head of Jesus Christ in a jar of urine. I can understand why people would find those objectionable. No, we’re talking about an ancient Greek play by one of their greatest tragedians. The Bakkhai deals with a perfectly reasonable and important topic: the relationship between God and man. The Bible, Shakespeare, even modern playwrites like Kafka have asked precisely the same questions: Who is man to give his devotions to? What are the consequences of the clash between spiritual and civil authority? Jesus wisely recommended rendering unto Caesar, etc., and our own U.S. Constitution took the same route, famously prohibiting, in the First Amendment, the establishment of a State-sponsored religion.

But obviously, some reactionary religious groups never have been comfortable with the separation of Church and State. They would prefer to see governance and theology tightly intertwined, even in the halls of academia, where freedom of inquiry and expression ought to be celebrated, not despised. Why is that? And why is it that such people so often hate wine and the spirit of freedom it inspires?

Well, at least the Salt Lake Tribune gave The Bakkhai a glowing review, advising playgoers to get there early to catch dramaturg Jim Svendsen’s informative introduction.” Too bad BYU crushed it.

dionysus

Dionysus won’t be playing in Salt Lake. Maybe San Fran?

Friday Fishwrap

Friday, May 22nd, 2009

We say “Chateau,” Europe says “Shut up!”

The spat between the European Union and American wineries flared up again last week, as a group of members of Congress teamed together to urge the U.S. Trade Representative, the nation’s top trade negotiator and principal advisor to the President, to clear the “traditional expressions” logjam with the European Union.

So-called “traditional expressions” are words on labels. They include chateau, clos, classic, noble, vintage, sur lie, champagne and ruby, among others. The E.U. long has objected to their use on American wines, claiming they poach on traditional European territory and mislead consumers. Back in 2006, the U.S. agreed to stop using the terms, but under a “peace-making clause,” wineries using them at that time were grandfathered in, and allowed to continue their use for 3 years.

That 3 year exemption ended in March. The expectation was that the E.U. would issue 2-year renewals, in order to further the peace-making period, while the hard issues were hammered out. “But they didn’t renew it,” says a source with close ties to the industry. It is this impasse that the U.S. Trade Representative is now being pressured to resolve by the politicians.

(For a good background story on this issue, see this Wines & Vines article.)

I asked the industry source what is likely to happen next. “It remains unresolved what the people with trademarks are supposed to do, like Chateau Montelena or Korbel [Champagne Cellars]. So we probably have a case for the World Trade Organization,” the international body that resolves trade disputes between nations.

My guess is that every winery currently using traditional expressions will be allowed to keep them. After all, nobody expects Clos du Val to change their name! I also suspect the list of words the E.U. objects to will be narrowed. I mean, sur lie? Come on.

Beckstoffer’s big Mendocino gamble

“Are we really too early?” That’s the question top grower Andy Beckstoffer asked rhetorically when he was quoted, in the Santa Rosa Press-Democrat, concerning his planting of 300 acres of organic Chardonnay vineyards by the banks of the Russian River in Hopland, which is in central Mendocino County.

Andy B. is one of the smartest guys in the industry, a veteran who came up through the ranks and bears the scars to prove it. (I have a chapter on him in my book, New Classic Winemakers of California: Conversations with Steve Heimoff.)

Andy’s question concerns, of course, when the Recession will end. Since nobody knows, it’s something of a gamble to be developing a big new vineyard at this time. Beckstoffer’s optimism runs in his genes, but it’s based also on his assumptions that (a) downturns always end, and (b) inland Mendocino County has been underrated as a source of premium wine.

I remember when I first tasted a Chardonnay from the old Jepson winery, which was made from the same area as Beckstoffer’s new vineyard. I thought it was one of the best I’d ever had. Chardonnay remains America’s favorite white wine, and there’s no reason to expect that will ever change. So, if Beckstoffer can keep his prices moderate — and if the wineries that buy his grapes don’t charge too much — his gamble is likely to pay off. I’d expect the Chardonnays to retail in the $10-$15 range.

Wine Train highlights problems, opportunities of vino-tourism

Thursday, April 30th, 2009

I’m always fascinated by the tension that so often arises in wine country between those who promote tourism and locals who don’t want a bunch of strangers traipsing all over their neighborhoods — even if they come armed with credit cards to spend in the stores and restaurants.

A couple years ago, I recall, there was a big brouhaha up in Knights Valley, that tranquil stretch of the Mayacamas Mountains that separates Alexander Valley from Napa Valley. Kendall-Jackson had wanted to build some kind of visitor’s center. Local residents opposed it. They called me up to see if I’d write about it. I decided not to, but in essence, their complaint was “Look, we have a nice, quiet little piece of God’s country up here, and we don’t want tour buses and traffic jams screwing it up.” I never did find out what happened.

There’ve been similar eruptions of passion in wine country. Another longstanding complaint is that when a region decides to glamorize itself as wine country, the price of real estate soars (well, it used to, anyway, before the housing bubble burst), forcing locals to pull up stakes and move. That happened in the Santa Ynez Valley, where lots of winery employees, who can no longer afford to live there, have to reside in faraway places like Lompoc or Santa Maria. And I remember when Wente wanted to develop the Ruby Hills area of Livermore Valley. Some bad feelings about that one.

Back in the ‘90s, when the owners of the Napa Valley Wine Train wanted to activate it as a tourist draw, the citizens of Napa Valley reacted with fury. It was a real pitched battle. Eventually, of course, the Wine Train was allowed to run along a stretch of Highway 29, but not as far as St. Helena, which surely is the leading tourist destination in the central-north part of the valley. Some of the local shops in St. Helena wouldn’t have minded the train coming into town and discharging tourists eager to spend money in the fancy chochky shops, clothing stores and art galleries. But St. Helena’s general citizenry said, Hell, no.

That was before the Great Recession. Now, the St. Helena Star is reporting that “[T]here’s been a thaw in the cold war between the Napa Valley Wine Train and the city of St. Helena.” Seems the city council has agreed to a trial period in which the train would bring passengers into town at 11 a.m. and let them wander around and spend money for two hours.

The issue of “sustainable tourism” is of worldwide concern, from scuba diving in endangered barrier reefs to eco-tourists plundering through the ancient preserves of indigenous people. In the case of wine, or what has come to be called vino-tourism, the downside was aptly described in this essay about wine tourism in Mexico’s Baja peninsula. Rising real estate prices are bringing about “land wars with aggressive buyers trying to corrupt land transactions,” and hotel and resort owners and wealthy Americans looking for second homes “roaming the valley…bused in from Ensenada to ride ATVs and ORVs, drinking wine and roaming the formerly quiet and peaceful neighborhoods.” Nor is there enough water for all the newcomers.

I imagine this is the very sort of thing the people of St. Helena wish to avoid.

Let’s cut the crap and stop accusing the alcohol industry of “causing” problems!

Wednesday, April 22nd, 2009

I’m of two minds when it comes to California raising taxes on wine, beer and spirits. (Yes, that issue is still on the table, and was the subject yesterday of a hearing by the Assembly Committee on Health.)

California, like other states, is in the toilet financially, and Schwarzenegger and the (mostly Democratic) legislators are looking for every dime they can raise. (Republicans are calling for spending cuts.) Schwarzenegger is a Republican, of course, but at least he has the cojones to admit he’s raising taxes after promising not to because California is on the verge of fiscal Armageddon and he has no choice. Ronald Reagan did the same thing when he was Governor; he raised taxes after saying he wouldn’t. Reagan and Schwarzenegger, like most Governors, are political pragmatists in the long run.

I don’t mind an honest discussion over taxes vs. spending cuts. But the discussion turns dishonest when the likes of Assemblyman Jim Beall (who introduced the alcohol tax hike bill) and the Marin Institute step in to spread their skein of lies and half-truths. The Democrat from San Jose and the fiercely anti-alcohol Marin Institute insist their support for the alcohol tax hike isn’t because the money is needed, it’s because the alcoholic beverage industry “causes” fetal alcohol syndrome and DUI fatalities and must “pay” for its sins.

“The industry must start paying its fair share for the problems their products cause,” Beall insists. On his government website, he goes even further:

“The alcohol industry creates devastating problems – traffic accidents, alcoholism – and walks away with money stuffed in its pockets while the public — including non-drinkers — are left to pay billions for the mess.’’

His friend Bruce Livingston, the Marin Institute’s executive director, backs up these incendiary falsehoods. “Now is the time to charge Big Alcohol for the $38.4 billion … in harm their products cause every year in California.”

Correct me if I’m wrong, but the alcohol industry doesn’t “cause” anything. It’s stupid people who cause problems: the idiot mother who gets loaded while pregnant, the moron who drinks and drives. Blaming a winery because someone who drinks their wine got into a traffic accident is just plain stupid-headed and unfair. It reminds me of the burglar who tried to break into a store at night through a rooftop window and fell through, hurting himself. He sued the store he was trying to rob! “It wasn’t my fault I got hurt, it’s because they put a dangerous window there and they should have known better.”

I DON’T THINK SO, KNUCKLEHEAD!

I can do no better than to quote this statement from a professor at Trinity College in Connecticut:

“Mr. Beall and Marin’s whole strategy of taxing people sober (with the long-term goal of eventually going back to prohibition) is fatally flawed…Research indicates that the heaviest drinkers do not curb their drinking in response to higher prices, unlike light-to-moderate drinkers, for whom there can be positive health benefits…If alcohol abusers are truly addicted, will an extra ‘dime a drink’ stop them? Will a career criminal decide to not get drunk before his next crime spree because of a 10-cent-per-drink tax? Of course not.”