Governor Malloy’s proposal to end Connecticut’s minimum bottle price requirement and allow for more competitive alcohol pricing would generate $150 million in new revenue for the state – and between $5.2 to $8.1 million annually in new excise and sales taxes, according to economic analysis presented during testimony today by Distilled Spirits Vice President Jay Hibbard before the Connecticut Legislature.
“With continued budget complications, the Connecticut legislature should make a common sense, consumer-friendly decision to modernize the state’s alcohol laws by ending this price-fixing scheme,” said DISCUS Vice President Jay Hibbard. “Governor Malloy’s proposal to repeal the state’s costly minimum bottle price requirement would provide greater marketplace competition, lower prices for consumers and significant additional revenue for the state treasury.”
“Eliminating the minimum bottle pricing mark-up allows retailers to sell products at a price they determine rather than at a government-mandated single bottle price. Artificially high prices drive Connecticut consumers to make purchases across state borders and results in the loss of millions in taxes each year. It is time to make Connecticut more competitive with its surrounding states, provide better pricing for consumers of beverage alcohol and increase revenue to the state,” Hibbard concluded.