Oregon — The Oregon Liquor and Cannabis Commission (OLCC) voted Wednesday to formally oppose a proposal to privatize the sale of canned cocktails, arguing the plan would reduce state revenues, undermine public safety, and increase administrative costs.
The proposal, circulated among lawmakers by the Northwest Grocery Retail Association and a small group of distillers, would move ready-to-drink cocktails from OLCC’s controlled system into private retail stores. Commissioners rejected the idea after reviewing an October staff analysis that projected significant fiscal and operational downsides.
“This proposal makes a false promise of new funding based on flawed economics,” OLCC Chair Dennis Doherty said. “There is no new money. Privatizing cocktails in a can would lead to less revenue and higher costs for our communities, narrow the choices of Oregon consumers, and undermine public health and safety by increasing the chance that minors will gain access to these liquor products.”
According to the agency’s analysis:
- Oregon’s current system generated $11.4 million for community programs between 2020 and 2025, while privatization would have produced only $7.7 million—a 32% drop, costing parks, schools, public safety, and treatment programs $3.7 million.
- Administrative costs would rise, including an estimated $1.25 million IT upgrade and $660,000 in staffing over two years to administer a new tax structure.
- The proposal assumes a 180% increase in sales volume, requiring Oregonians to purchase 5.2 million additional canned cocktails in the first year—a figure the agency called unrealistic.
- Pennsylvania’s comparable 2024 privatization effort produced only a 7% increase in sales and a 15% increase in volume, far below the forecasted surge.
- Market saturation and competition from national brands have already pressured Oregon distillers; staff warned privatization would hasten that trend.
- Alcohol consumption is declining nationally, with only 54% of U.S. adults reporting they drink alcohol, reducing the likelihood that canned cocktail growth would increase overall sales rather than cannibalize beer and wine.
- Moving sales to grocery stores would eliminate controlled-entry environments, making it easier for minors to access alcoholic products.
In addition to the formal vote of opposition, commissioners directed Chair Doherty to send a letter to lawmakers outlining their concerns. Staff were also instructed to prepare a comprehensive revenue and cost impact report for future consideration.
The proposal is expected to be a topic of discussion heading into the 2025 legislative session.
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