Liquor Privatization a Decade Later

It has been just ten years since that the initiative to privatize sales of spirts as well as wine and beer went into effect on July 1, 2013. With this, Washington State was taken out of the business of selling alcoholic beverages in state stores which is what the initiative was all about. Nearly 60% of the voters in November 2012 chose to put an end to state stores. The initiative included arcane layers of fees and taxes which took time to figure out. There is a $2.83 spirits tax and a 20.5% sales tax on spirits, both levied separately. But the effect of these taxes are mitigated by volume discounts which are permitted by the initiative. Other reductions can be found in production costs in producing spirits in huge volumes in column stills and in bottling in 1.75 liter bottles (I have seen many 1.75's in shopping carts at Safeway). All this is to the benefit of large retail operations such as Costco, Total Wine and Safeway that have the purchasing power to cut costs.

Over the past decade, the benefits of privatization have become evident with more convenience and wider choices. Stores also seem to be catering to the Gen X consumer. I have been struck by how many flavored Vodkas are being offered in just about anything. These products can be made cheaply by simply flavoring neutral spirits. These trends are also transferring to wine as more consumers are buying boxed wines and magnums. What all this means is that privatization in Washington works. And it works better than in a lot of other states. Our neighboring state, Oregon is among the states having the highest liquor prices in the country, thanks to state run stores. Washington consumers have gotten used to privatization and seem to be fine with it.

A Super Buy from Cultura

A couple of weeks ago, I saw on Facebook a posting by Erik McLaughlin about an impressive red from the Cultura winery in Zillah in the Yakima Valley. Then I happened to be in Selah with Lynn's niece who is married to a hops broker who has friends in the wine industry as well. He gave me a bottle of a Cultura wine which I found to be impressive.

2016 Cultura "Chronos" Red Wine, Yakima Valley ($40) - This bend of 50% Cabernet Sauvignon and 25% each of Merlot and Cabernet Franc offers a garnet edged ruby color and maturing aromas of blackberries, black cherries, plums, black roses, tobacco, cedar, semi dried herbs and stick incense. On the palate, the wine is thick and chewy, with aging softened dark fruits that are intermixed with licorice, Swiss chocolate, coffee grounds and dusty earth. The back reveals semi dried berries and plums, roasted nuts, kirsch and toffee, followed by a lingering, chewy, age softened tannin finish. 19/20 points.

This wine happens to be on sale at the winery for $28 a bottle, which makes it a super buy. I also will be putting in an order for other Cultura wines to be reviewed in the September issue. I am always on the lookout for under the radar wines such as this one.