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Feb 16

Allow Beer & Wine Specialty shops to sell Washington craft spirits – SB 5731

Weekly I’m asked, by customers, “How has the privatization of liquor affected you?” My fellow specialty beer & wine store owners say they frequently hear the same question. Most of us are pretty open. One wine shop owner says they’re “hurting, looking at location lease-end dates, wondering about renegotiation to continue to struggle and possibly lose – vs. closing up shop.”

Washington State Senate Public Hearing on SB 5731

Big box liquor chains, grocery stores and independent liquor retailers have edged in.

A customer in a friend’s Specialty Wine/Beer Shop relays, “I only pickup everyday items at the (other business); I come to you for this (specialty item).” She continues, “It was like a tasting reunion in the aisle,” speaking about running into several other of your customers at that 10,000-square foot out-of-state-based superwarehouse. The now infrequent customer saw the look cross my friend’s face, and states again, “I only pickup everyday items at the (other business); I come to you for this (specialty item).” As a specialty beer/wine store owner, we already know this. But it’s not the occasional purchase from a customer that will keep your business operational, long term.

What makes a “specialty” beer/wine store?

In previous years, Specialty Wine/Beer Stores had clear differentiation from other Washington State Alcohol Licensees. As laws have changed (often with lobbyist input, something we specialty beer/wine store licensees cannot afford), there’s been a dilution of what it means to be a “specialty” shop.

Now there are grocery stores are offering samples; restaurants filling growlers; independent liquor stores selling kegs – growlers – specialty wine and beer; taverns selling beer/wine to-go.

Though operating under the same guidelines that indicate from whom we can source alcoholic products, multi-location large-footprint corporations do have advantages. For superwarehouse chains price breaks (though illegal) and designated shipments occur. We’ve even seen wineries and breweries drop their distributors, no longer accessible to specialty shops their products now direct-ship to warehouse stores.

So, what makes the “specialty” beer/wine store special?

Everyday items don’t make our businesses special, except to those who live locally. Our customers are telling us, “I only pickup everyday items at the (other business); I come to you for this (specialty item).”

Specialty items — this is what keeps our neighborhood Specialty Beer/Wine Stores alive. It is why customers visit. They look to us for affordable luxuries.

Contact Senator ASAP - email YES on SB 5731Those in opposition to SB 5371 (allowing beer and/or wine specialty shop licensees to sell craft distillery products) have clear reasons: WALSA is looking out for the interests of independent liquor retailers, many of whom have closed doors, unable to make a go of it — even with the opportunity to have the same legal rights as a specialty beer/wine store. A public safety group is concerned with underage drinking, but SB 5371 includes provisions that Washington craft distillery products only become available in specialty beer/wine stores — not small convenience shops where most underage purchases occur. Most specialty beer & wine stores in Washington are small. We know our customers by name. We know the styles they drink.

The specialty shop is about community. Many customers are our neighbors. We want to do right by them. We research and, if possible, special order products for our customers. Our goal is to serve, to supply them with that special beer, wine, hard cider, mead.

We also all receive daily requests for specialty and interesting spirits, for niche craft-distilled products. Since state stores have ceased, the selection offered at their independent liquor shop has diminished, yet they’re also not finding the products they seek at the grocery store. They want to support local business, they ask, “Where can I get it?” They are already looking to us for it.

For shops like Fremont Wine, their neighbors no longer have an independent liquor store. There simply wasn’t enough neighborhood support and extensive product line to support. The small local wine shop, also struggling, could likely remain a viable business if able to offer craft distilled spirits to their customers.

Washington’s specialty bottle shops are treading water in this economy. Things that once made us “specialty” have been diluted. Give these small business owners a fighting chance by allowing them to carry Washington craft distilled spirits.

Washington State Senators, please approve SB 5731.

In support of Washington SB 5731

To my friends, I ask for your support. As soon as possible, contact your Senator in support of SB 5731.

We need to send as many emails as possible to Senate committee members ASAP. Below are two emails to send out, as well as reasons to pass 5731. Pick the reasons that apply to you. And have others (friends, family, employees, business partners, customers, etc.) send emails, too.
Goal: 1,500 emails sent by Sunday night

Email #1
To: janea.holmquistnewbry@leg.wa.gov
Text: Dear Senator Holmquist Newbry, thank you for hearing SB 5731. I strongly support this bill, and would appreciate it if you would exec, and vote for, the bill. [REASONS/YOUR PERSONAL MESSAGE] Sincerely, [YOUR NAME, BUSINESS NAME, ADDRESS, PHONE]

Email #2
To: john.braun@leg.wa.gov, bob.hasegawa@leg.wa.gov, mike.hewitt@leg.wa.gov, curtis.king@leg.wa.gov
Text: Dear Senators Braun, Hasegawa, Hewitt and King, thank you for hearing SB 5731, the bill allowing beer and wine specialty shops to sell spirits made by small distillers. I strongly support this bill and would appreciate your vote in its favor. [REASONS/YOUR PERSONAL MESSAGE]. Sinerely, [YOUR NAME, BUSINESS NAME, ADDRESS, PHONE]

Email #3 (for the ambitious)
Send an email to your own representatives asking them to support SB 5731. If you don’t know who your representatives are, go to http://app.leg.wa.gov/DistrictFinder/ and enter your home address. If you already know who your reps are, you can find their email addresses by going to http://www.leg.wa.gov/senate/senators/Pages/default.aspx and clicking on the “E-Mail addresses” link on the right.

Reasons to approve SB 5371

  • Staying in business. Business for specialty shops has been declining since I-1183 (privatization intiative) went into effect, as customers switch to 1-stop shopping. To retain their customers, specialty stores must be able to sell spirits, such as high-end brandy and dessert wines.
  • Selection. Specialty shops sell products that other stores don’t. Restaurants also rely on specialty shops.
  • Different markets. Former state stores mostly focus on the top 50-60 selling brands, which are produced by large, international corporations like Diageo. This leaves little–if any–shelf space for small, Washington distillers. SB 5731 provides a marketplace that is just for those small, Washington distillers.
  • State revenue. Specialty shops will sell higher-priced spirits in keeping with their customer base. These more expensive products will bring in additional revenue for the state (through the 17% spirits sales tax).
  • Customer service. Specialty shops provide excellent customer service, and are able to explain the products in depth and give recommendations. This is not something you get at Safeway, Costco or the former state liquor stores.
  • Community. Specialty shops hold weekly tasting events. People learn about the products, but more than that, the events provide a sense of community as many people regularly attend the tastings.
  • Promote Washington products. Specialty shops hold beer/wine classes where Washington products are promoted. SB 5731 opens that same opportunity for small, Washington distillers.
  • Fairness. Many sectors within the liquor industry are in jeopardy following I-1183 (liquor privatization initiative): specialty shops, small distillers, craft distillers, small family wineries, importers, etc. Each one of these sectors has just as much right to stay in business as former state liquor stores do.
  • Public safety. SB 5731 allows only true specialty shops to sell spirits. If you’re under 21 years old, you have no business going into these specialty shops. Unlike large stores, these specialty shops do not have self-checkout lines (which are unsafe), they do not have shoplifting problems, and they do not sell products favored by chronic public inebrients.
  • Support small distillers. Small distillers are being pushed out of the market due to lack of shelf space. Under 5731, if a specialty shop wants to sell spirits, the spirits must be produced by small distillers. Washington is noted for its beer and wine industries. If our distillers show even half of the imagination and innovation as our brewers and vinters have, our state will very successful, too. The talent is here; we just have to nurture it.
  • Support small family wineries. Similar to small distillers. If specialty shops close, they will lose shelf space.
  • Tourism. People do not come to Washington to visit former state liquor stores. They come to Washington to visit our wineries, breweries, distilleries, and the specialty shops that carry Washington products.
  • Who can realistically survive. Former state liquor stores compete first and foremost with large spirits retailers like Safeway and Costco. The problem is that former state liquor stores cannot win against these large retailers, and most will go out of business sooner rather than later. Specialty shops, on the other hand, cater to a different market and sell very different products than the large retailers to. If you give specialty shops the flexibility to sell spirits, they can survive and continue to support Washington beers, wines and spirits.

7 comments

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  1. Allison Helfen

    Just sent my emails! Let’s hope they will finally listen and help out us small wine shops once and for all!

  2. Andy Underwood

    Just wondering if consumers will also get to vote on this issue.

    1. Tiffany

      Andy, no. The only input voters have on bills like this is via contacting their State Legislators. Thus, it is up to the public, both in favor and opposed, to get out the word and get the public to voice their opinion. First the bill will need to make it thru Committee, then Senate vote, House vote, and finally via Governor (at least that’s the process I observed on the previous bill-to-law process that affected Specialty Beer/Wind Store licensees).

      Please contact your Senator and those on the Committee (names & email addresses herein), as well as share this information with your friends and colleagues. We need and appreciate your support of SB 5731!

      On behalf of neighborhood independent specialty wine/beer stores I appreciate your support. Unlike the opposition to SB 5731, we have no hired lobbyists to support us.

  3. Tiffany

    UPDATE:

    The Senate Labor & Commerce Committee will vote on SB 5731 tomorrow (Friday) morning. The meeting goes from 8-10 a.m., and SB 5731 is the second to last item on the agenda. For those of you who want to watch the vote in person:

    Time: Friday, February 22 from 8-10 a.m.

    Location: Cherberg Building, Senate Hearing Room 4. Map of capitol campus — in the lower left corner of the map, there are 2 buildings on a slant. Cherberg is the one on the right/east.

    Directions & parking: link. To be on the safe side, pay for parking that will last until 10:30 a.m.. The committee meeting is 2 hours long, and it’s possible that the bill could be the last one heard.

  4. Tiffany

    UPDATE: SB 5731 is making progress, but needs your support!

    Yea! SB 5731 passed from the Senate Commerce & Labor Committee today (Friday, February 22, 2013) — unanimously — and is on its way to the Senate Rules Committee. Now it’s time to send 3 more emails. One to Rules Committee members asking for their support. Second to Commerce & Labor Committee members and to the bill sponsors thanking them for their support. Third to your state senator.

    If you have a little extra time, please make two calls personally, one to Sen. Karen Keiser, and another to Sen. Joe Fain. Sen. Keiser (360-786-7664) is the primary sponsor of the bill. She’s done a wonderful job advocating for it, and it would be nice to personally thank her for all her work. Sen. Fain (360-786-7692) is one of the secondary bill sponsors, and he sits on the Rules Committee. He’s another good person to personally thank for sponsoring the bill.

    Emails – Just like last time, we need as many people as possible contacting the legislators. So ask your business partners, family, friends, customers, etc., to send the emails, too.

    Email #1 (to Rules Committee members)
    To: ltgov@leg.wa.gov, tim.sheldon@leg.wa.gov, barbara.bailey@leg.wa.gov, randi.becker@leg.wa.gov, don.benton@leg.wa.gov, andy.billig@leg.wa.gov, mike.carrell@leg.wa.gov, bruce.dammeier@leg.wa.gov, j.darneille@leg.wa.gov, doug.ericksen@leg.wa.gov, karen.fraser@leg.wa.gov, david.frockt@leg.wa.gov, nick.harper@leg.wa.gov, jeanne.kohl-welles@leg.wa.gov, edward.murray@leg.wa.gov, linda.parlette@leg.wa.gov, ann.rivers@leg.wa.gov, mark.schoesler@leg.wa.gov, rodney.tom@leg.wa.gov
    Cc: karen.keiser@leg.wa.gov

    Subject: Support SB 5731
    Text: Dear Senators, I shop at specialty wine/beer shops, and I fully support SB 5731, the bill allowing beer/wine specialty shops to sell spirits made by small distillers. I would be grateful for your support of this bill through the Rules Committee. [YOUR PERSONAL MESSAGE]. Sincerely, [YOUR NAME, BUSINESS NAME, ADDRESS, PHONE]

    Email #2 (to the sponsors of the bill, and Commerce & Labor committee members)
    To: karen.keiser@leg.wa.gov, steve.conway@leg.wa.gov, joe.fain@leg.wa.gov, adam.kline@leg.wa.gov, steve.hobbs@leg.wa.gov, janea.holmquistnewbry@leg.wa.gov, john.braun@leg.wa.gov, bob.hasegawa@leg.wa.gov, mike.hewitt@leg.wa.gov, curtis.king@leg.wa.gov
    Subject: Thank you for supporting SSB 5731
    Text: Senators Holmquist Newbry, Braun, Conway, Hasegawa, Hewitt, Keiser and King, thank you for voting for SSB 5731, allowing beer/wine specialty shops to sell spirits made by small distillers. And extra thanks to Senators Keiser, Conway, Fain, Kline and Hobbs for their sponsorship. With your continued support — and industry doing its part by continuing to outreach — I’m hopeful that SB 5731 will pass Rules Committee, too. [YOUR PERSONAL MESSAGE]. Sincerely, [YOUR NAME, BUSINESS, ADDRESS, PHONE]

    Email #3 (to your personal senator)
    To: you can look up your state senator by going to http://app.leg.wa.gov/DistrictFinder/. To find their email addresses, go to http://www.leg.wa.gov/Senate/Senators/Pages/default.aspx and click on the “E-Mail addresses” link on the right.
    Subject: Support SSB 5731
    Text: Senator [LAST NAME], I shop at [BUSINESS NAME], a beer/wine specialty shop located in [CITY]. I strongly support SSB 5731, which allows specialty shops to sell spirits made by small distillers. The bill is now in the Rules Committee. You’re my state Senator, and anything you could do to help pass 5731 through Rules would be greatly appreciated. [YOUR PERSONAL MESSAGE]. Sincerely [YOUR NAME, ADDRESS, PHONE]

    Phone Numbers of Rules Committee Members
    Chair: Lieutenant Governor Brad Owen (360-786-7700)
    Vice-chair: Sen. Tim Sheldon (360-786-7668)
    Members: Senators Barbara Bailey (360-786-7618), Randi Becker (360-786-7602), Don Benton (360-786-7632), Andy Billig (360-786-7604), Mike Carrell (360-786-7654), Bruce Dammeier (360-786-7648), Jeannie Darneille (360-786-7652), Doug Ericksen (360-786-7682), Joe Fain (360-786-7692), Karen Fraser (360-786-7642), David Frockt (360-786-7690), Nick Harper (360-786-7674), Karen Keiser (360-786-7664), Curtis King (360-786-7626), Jeanne Kohl-Welles (360-786-7670), Ed Murray (360-786-7628), Linda Evans Parlette (360-786-7622), Ann Rivers (360-786-7634), Mark Schoesler (360-786-7620), Rodney Tom (360-786-7694)

  5. Tiffany

    UPDATE // APRIL 1, 2013 — NO FOOLIN’ THIS BILL IS ALIVE AGAIN AS AN AMENDMENT, TO BE REVIEWED TODAY. SORRY FOR THE SHORT NOTICE. JUST RECEIVED THIS:

    Hello, all.

    Senator Karen Keiser will submit an amendment to SHB 1332 at today’s 1:30 p.m. Senate Commerce & Labor Committee meeting, and she needs as many people as possible to contact the committee members in support.

    SHB 1332 allows retail spirits licensees who are participating in a responsible vendor program to offer spirits sampling. Senator Keiser’s amendment would enable specialty beer and wine stores that meet certain conditions (including participating in a responsible vendor program) to sell spirits from craft distillers and to offer samples as well.

    Please call or email the following senators ASAP

    Janea Holmquist Newbry (360) 786-7624
    John Braun (360) 786-7638
    Bob Hasegawa (360) 786-7616
    Mike Hewitt (360) 786-7630
    Curtis King (360) 786-7626

    Email
    To: janea.holmquistnewbry@leg.wa.gov, john.braun@leg.wa.gov, steve.conway@leg.wa.gov, bob.hasegawa@leg.wa.gov, mike.hewitt@leg.wa.gov, curtis.king@leg.wa.gov
    Cc: karen.keiser@leg.wa.gov
    Subject: Amendment to SHB 1332
    Text: Dear Senators Holmquist Newbry, Braun, Conway, Hasegawa, Hewitt and King, please support Sen. Keiser’s amendment to SHB 1332, allowing beer/wine specialty shops to sell and sample craft spirits. [PERSONAL MESSAGE.] Sincerely, [NAME, BUSINESS NAME, ADDRESS, PHONE]

    Apologies for the short notice. Last-minute moves sometimes happen when the Legislature gets into the final weeks.

    Karen Rogers
    360-628-7052

  6. Tiffany

    UPDATE FROM KAREN ROGERS, regarding the Senate Bill amendment that would allow Specialty Beer/Wine Stores to sell Washington distilled spirits:

    The amendment did not pass the Senate committee today. However, the bill did. What this means is that should the bill get to the full Senate floor, we’ll have another chance to get the amendment passed (which would include the language that we need).

    Rep. Steve Kirby is the sponsor of the bill (1332) that we want to piggy-back on. Karen has a meeting scheduled with Rep. Kirby for this Wednesday. He might feel that our amendment could put his bill at risk, but she hope that we can convince him that it’s worth the risk, and that we’ll continue to make calls and send emails.

    Please send Rep. Steve Kirby emails and/or phone calls in support of this amendment.

    Contact info for Rep. Steve Kirby:
    Email — steve.kirby@leg.wa.gov
    Phone — (360) 786-7996

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