Virginia Retail Federation Supports ABC Privatization

The Virginia Retail Federation (VRF), has voted to endorse the principle of privatizing the sale of distilled spirits in the Commonwealth; and will work closely with Governor Bob McDonnell’s staff and General Assembly members to modify the bill that is likely to be presented in the upcoming months. The VRF’s official position on the matter is as follows:

"Virginia Retail Federation supports the principle of privatization if the transition process is open to the public for input, if it is accomplished with due consideration for merchants of all sizes, is approved through the legislative process and includes proper regulatory controls.

Specifically, the VRF seeks the following modifications prior to supporting any legislation:

• Increase number of available licenses
• Significantly increase licenses for small, independent retailers
• Reduce minimum starting bid for tier four licenses to $25,000 (paid over an extended period of time)
• Modify tier four requirements to include merchants with less than 3,000 square feet or fewer than 50 employees
• Early auction and distribution of tier four licenses for beta testing

“Because there are many more independent merchants in Virginia than there are national retail chains, we believe that the number of tier four licenses must be far greater than those granted to national competitors,” says Retail Alliance President and CEO Susan Milhoan. “We have committed to the Governor’s office that we will work closely with the Joint Legislative Audit and Review Commission and suggest a thorough market analysis to determine what that number should be.”