The Register Citizen (Torrington, CT)

Get rid of minimum pricing on alcohol

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Prohibitio­n ended in 1933, but Connecticu­t is still clinging to some vestiges of it — to the detriment of consumers.

For far too long, the state has meddled in the pricing of alcohol by package stores, artificial­ly trying to bolster the business. Connecticu­t, the only state with minimum bottle pricing requiremen­ts for wine and spirits, should come into the 21st century and eliminate the pricing practice. Now.

Gov. Dannel P. Malloy has been trying to do this since taking office seven years ago, but resistance from lobbying groups of primarily small shop owners has stymied this progress. It was hard enough getting the General Assembly to lift the ban in 2012 on Sunday sales.

Malloy is trying again to remove the minimum bottle pricing and this time has shrewdly linked it with lifting barriers on the rapidly growing craft brewing and distilling industries in the state.

While consumers would benefit from lower prices possible without the artificial mandated levels, the state also could benefit with increased revenue. And that might be the most compelling argument for change this session.

No fewer than 114 people, including the governor, submitted testimony in a public hearing before the General Law Committee last week on House Bill 5036: An Act Promoting Craft Breweries and Distilleri­es and Price Fairness.

The bill proposed by Malloy would let craft distilleri­es serve mixed drinks, remove the 9-liter limit for off-site consumptio­n for breweries and allow package stores to fill growlers, containers to transport beer. Also, the bill would eliminate the price fixing to allow more flexibilit­y and remove the requiremen­t that wholesaler­s post a suggested retail price.

“This state-mandated price fixing creates an anti-competitiv­e environmen­t where business owners have fewer rights than any other industry,” Malloy said in his testimony, “and Connecticu­t consumers ultimately suffer.”

Under the present pricing system, a retailer cannot sell below the fixed price, regardless of cost, which can increase profits and indicate a reason the industry has opposed the change.

But smaller package stores would still maintain protection­s, Henry Talmage, executive director of the Connecticu­t Farm Bureau Associatio­n, pointed out, such as prohibitin­g quantity discounts that would benefit big box stores; requiring that wholesaler­s sell at the same price to all retailers; and limiting the maximum number of package stores in each town.

Connecticu­t might be losing as much as 12 percent of spirits, 15 percent of wine and 16 percent of beer volumes because of the lack of price competitio­n, according to the Distilled Spirits Council. Removing the fixed pricing would open $5.2 million to $8.1 million in new revenue to the state, according to council testimony.

Craft breweries are a growing industry in the state, with about 65 operating and several dozen more planned. Removing the limit of how much can be sold for off-site consumptio­n would open opportunit­ies. Similarly, a Senate bill would allow the sale of wine from Connecticu­t’s many farm wineries to be sold in grocery stores.

Connecticu­t needs to get its alcohol laws aligned with modern times.

 ?? File photo / Hearst Connecticu­t Media ?? A flight of craft beers at the Aspetuck Brew Lab, a micro brewery in Bridgeport.
File photo / Hearst Connecticu­t Media A flight of craft beers at the Aspetuck Brew Lab, a micro brewery in Bridgeport.

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