Costco to Sit Out Oregon and Idaho Liquor Fights in 2012

After funding nearly all of Washington's $22 million campaign to end a government monopoly on liquor sales, Costco will be watching from the sidelines on efforts in Idaho and Oregon ? at least for this year.

April 10, 2012

ISSAQUAH, WA - After putting nearly all of the $22 million spent last year in a Washington campaign that ended a government monopoly on liquor sales in the state, Costco said it won??t pay for another state campaign this year, specifically ruling out plans to lobby for similar change in Idaho or Oregon, the Associated Press reports.

"We're going to be cheering on the sidelines," said Joel Benoliel, a lawyer for Costco Wholesale Corp.

In Oregon, only state-licensed agents can sell packaged hard liquor, with most of the profits going to the state??s general fund. Idaho has a similar law. Liquor sales generate substantial revenue in both states, so observers maintain retailers will try to modify the rules to share the opportunities.

The Northwest Grocery Association said it plans to petition lawmakers in Oregon and Idaho to expand liquor sales, possibly as early as 2013. "We do believe it is coming. We believe it's popular in Oregon," said Shawn Miller, an Oregon lobbyist for the grocery industry trade group.

Despite the interest from these groups, Costco said it was disappointed last year to find itself "essentially going it alone" in funding the Washington initiative and there is "not going to be leading the parade," Benoliel said.

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