Peninsula Daily News news services
OLYMPIA — Voters have rejected a Costco-backed measure that would have gotten Washington state out of the business of selling hard alcohol, delivering a double rebuke to competing efforts to privatize liquor sales in the state.
With more than two-thirds of the expected vote counted Wednesday, Initiative 1100 was losing by more than 73,000 votes, with 52 percent of voters rejecting it.
Voters had already rejected a competing liquor privatization measure, Initiative 1105.
Both I-1100 and I-1105 would have abolished the state’s current monopoly on liquor distribution and sales in favor of private businesses.
But I-1100 would have gone further, dismantling the current distribution model and allowing retailers like Costco to buy beer, wine and spirits directly from manufacturers instead of going through distributors.
The “yes” campaign spent nearly $6 million, with more than $4.8 million coming from Issaquah-based Costco in money and in-kind contributions.
A coalition of several groups opposed both initiatives, including unions, the Washington state Council of Firefighters, and several craft breweries and wineries, citing concerns ranging from public safety to the potential effect on state and city budgets.
I-1100 would have removed the liquor markup imposed by the state, and I-1105 would have removed the markup and all additional liquor taxes.
Washington is among 18 so-called “control” or “monopoly” states that exercise broad powers over wholesale distribution of hard liquor.
Of those states, 12 — including Washington — are also involved in retail alcohol sales through either state-run liquor stores, outlets operated by private contractors, or both.
While the liquor privatization debate hasn’t been able to gain traction in Washington state until this year’s dueling initiative measures, the state Legislature has already made several changes to the three-tier system over the years, including allowing brewers and wineries to sell directly to consumers, and allowing retailers to buy directly from wineries and brewers.
