Illinois Alcohol Prices Go Up

  At 4 Star Discount Liquor in East Moline, a fifth of McCormick Vodka was $7.99 yesterday.  Today?  $9.49. 

     "So far, customers haven't been happy.  They've been complaining," says store owner Sunny Singh.  Today he's marking up all fifths of Southern Comfort to $21.49, a $1.50 increase. A fifth of Seagram's 7 is now $14.49, up $2.00.  A fifth of Crown, up a $1.50 to $28.49.

     Illinois' new liquor tax accounts for only about 80 cents of the increase.  The remaining 70 cents to $1.20 was tacked on by distributers, so retailers like Singh are passing on that increase to consumers along with the tax increase. 

     It is not unusual for alcohol wholesalers to increase the prices they charge retailers; sometimes prices can fluctuate month to month.  What stands out now is not only the amount of this increase but also the timing.  The wholesale markup happened September 1, the same day Illinois' new liquor tax went into effect.  The tax increase got a lot of media attention, but the wholesale markup did not. Singh calls it clever timing:  distributors piggy backing their increase on top of the government's.

     Sales at this East Moline store are suffering at the moment, but Singh's not worried.  "People are not going to be shopping a lot for liquor now, but eventually they'll forget about the tax increase and they'll get back to buying and drinking again."