Let's Kill Another Privatization Myth III

Another favorite clerk message is that privatization would kill off the local or craft brewery, winery, or distillery. Not a lot of data out there on this point since the craft movement really didn't exist 25 years ago when Iowa privatized or 20 years ago when Alberta privatized, but there is one current example: Washington State.

How did the craft movement do in Washington from before privatization to after privatization?

In FY 2011, before privatization there were:

• 739 Winery licenses
• 151 Brewery licenses
• 35 Craft Distillery licenses

In FY 2013, the first year after privatization:

• Winery licenses increased 7.4% to 794
• Brewery licenses increased 47% to 223
• Craft Distillery licenses increased a whopping 83% in just two years to 64.
• While not producers, but indicative of the increased selection available to Washingtonians, the Importers and Distributors licenses increased an incredible 129%.

While it may be true that some in-state sales declined (hard to say since all the data isn't available), that doesn't seem to have stopped the craft movement. One thing you can say about the free market is that people don't start businesses to lose money; they aren't the PLCB, after all, with millions to waste on signs and kiosks and things. If they're starting businesses, they're pretty sure they can sell product.