Monday, August 30, 2010

The Ups and Downs of I-1100

Washington's I-1100 has very few downsides and a lot of upsides.  The obvious upside is that it would take the state of Washington out of the Prohibition-era legal and statutory scheme, the reasons for which seem irrelevant in the 21st Century.  And the counterpart to this argument, that allowing private liquor sales will dramatically increase desperately-needed state revenue, is also a compelling argument in favor of I-1100.

Another upside - and I've firmed up my position on this - is that small wineries, breweries, and distilleries will be able to sell directly to retail venues, rather than going through a distributor.  I think it is more important for entrepreneurial operations thrive, and innovation is something that the Pacific Northwest is good at - there is no shortage of small operations around the state, and they should be given every available opportunity to compete.  I-1100 would do just that.  I don't think the distribution business needs protecting, and evolution will run its course.  Nature evolves according to natural selection.  Large banking institutions evolve when banking and lending laws are changed.  And so too, the wine industry will change as the laws change.  Where the distribution industry may have once been relevant, perhaps it isn't anymore.

The downside?  Fears by small wineries and others that they will have difficulty competing or will be required to extend credit to retailers where they did not do so before, which affects their cash flow, are understandable.  Whatever fears small wineries or others may have about being able to compete or worries about cash flow are easily laid to rest because through networking and connections, there are those who can assist with marketing and with negotiating payment agreements in the commercial centers of the state and beyond, that will most likely open up the market to those wineries, where it may have been previously inaccessible.  More competition, yes, but on a much larger playing field. 

I-1100 is what the state needs now, and it's time to put the Prohibition-era laws behind us. 

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