One of the two—and so far only—financial backers of 1105 is the Odom Corporation, a major U.S. distributor that continues to expand its Western reach. Owners John, Jim, and Bill Odom, sons of Milt Odom, who founded the company in Alaska 76 years ago, recently partnered with Miami-based Southern Wine and Spirits of America to distribute beer, wine, and spirits from two corners of the country.
To date, Odom has given $967,000 to a campaign that produced 360,000 signatures. Young's Market of Los Angeles has added another $1.2 million to fund the drive. Young's is also a major distributor in this state and owns K&L Beverage, with its large Washington operation.
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Odom spokesperson Denise Milligan referred all questions to campaign spokesperson Neuman. "The distribution industry will grow with passage of either initiative," Neuman reiterates, with the blossoming of thousands of new sales outlets.
Issaquah-based Costco Stores is the donor ($735,000) to the other measure, I-1100, although a few individuals have contributed about $1,500 total. The warehouse chain, which in 2005 tried but failed in court to significantly change state beer and wine sales laws, would be well positioned to begin retailing discounted liquor through its bulk-sales method. No matter how much booze Costco peddles, under I-1100 the chain's big-box stores would pay the same price for licenses as mom-and-pop outlets—$1,000 annually, along with a $2,000 one-time application fee.
Costco's in-store initiative drive helped produce more than 390,000 signatures (only 240,000 were needed for ballot certification). In a statement, the corporation maintains that I-1100 best serves its members and the state's consumers in general by "providing them greater choices in their purchasing options and allowing them to benefit from efficiencies that the private sector and competition can bring to the sale of liquor."
Other I-1100 endorsers include the Northwest Grocery Association and the Washington Restaurant Association. Campaign backer and Renton Wine Alley owner Allison Helfen says passage of I-1100 would allow her to add spirits and possibly double her business, while Wally Wright, owner of Seattle's Meridian Market, thinks the initiative offers savings to taxpayers and is something "we can make some money on."
Furthermore, in a recent opinion piece for the Puget Sound Business Journal, restaurateurs Tom Douglas, Chad Mackay, and Pete Hanning toasted I-1100, calling the control system "antiquated" and adding that "many of us who are in the restaurant business have our hands tied even more because it limits our ability to work in a free-market system to negotiate the best possible prices for all of our goods and services."
Mick McHugh, however, isn't so sure. He's the owner of F.X. McRory's, the cavernous steak and chop house in Pioneer Square, where the well-stocked Whiskey Bar is captured in a memorable LeRoy Neiman painting. "Frankly," says McHugh, "we've had great success with the state liquor board in our 33 years here. They helped us create one of the world's great bars. We have over a thousand labels now, all by special order through them, all super-premium stuff."
Still, instead of having to pick up his large liquor orders from a state store, he'd like to have the option of having it delivered, perhaps by a distributor (some offer bars the option of buying on credit as well). "I guess my question is, is it [privatization] for the chains' benefits only, or will the small businesses, single businesses, and one-license shops benefit as well?"
Kaushik says he's encouraged by reactions to the opposition's campaign against the loss of state jobs, the "jeopardizing" of public safety through increased sales, and the possible hit to the state budget.
"By going out and explaining what these measures do, we see a change in attitudes," he says. "People really have to read the fine print."
randerson@seattleweekly.com
