The Virginia Department of Alcoholic Beverage Control plans to raise the price of liquor sold in its stores in an effort to increase revenue. The income will jointly go toward the state budget and investing in ABC’s technology.
“ABC has aging business technology,” ABC spokesperson Becky Gettings said in an email. “The additional funds [from the markup] will go towards the general fund, but ABC is also wanting to reinvest in its information technology.”
If the governor approves the measure as it stands, there will be a four percent markup on distilled spirits, Gettings said. This will be reflected as a two percent bottle price increase for the consumer.
This markup would be added on top of the average 69 percent markup already in place on alcohol sold in ABC stores — which comes in addition to the alcohol-specific tax levied by the state, which is 20 percent.
A number of University students said the change would likely have little overall effect on student spending habits.
“I think students would keep buying liquor regardless of how much the price fluctuates,” third-year Nursing student Grace Bingol said.
Third-year College student Will Clark agreed.
“An increase in the price of liquor will lead to us spending less money elsewhere, and probably won't affect how much we spend on alcohol,” Clark said.
Because the markup would fall exclusively on distilled spirits, second-year College student Price Gillock said students may simply shift their alcohol preferences when the increase is implemented.
“Honestly, it probably won't affect students' budgets all that much ... some students may substitute liquor for cheaper beer, though,” Gillock said. “It's a pretty good strategy [by ABC] — unless you're an avid consumer of liquor, you're unlikely to notice a change, and if you are an avid consumer of liquor, you're unlikely to change your consumption habits.”
The exact markup is still being finalized by ABC and state officials. Regardless of the ultimate percentage, Gettings said that the increase will raise ABC returns to the state for years to come.
The last time ABC implemented a markup was Feb. 2008.
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