North Carolina may change ABC system for liquor sales

Beer and wine sales in North Carolina are handled by private retailers, but liquor sales are all controlled by a system of ABC (Alcohol Beverage Control) boards.

These boards, made up of several members in each county appointed by a county commission, manage the sale of liquor and assess fees. Now, there is a movement to privatize the sale of liquor to take the power away from the county staff. Governor Perdue appointed a committee to study the system and recommend any needed changes.

Currently, the state controls the type of liquor that can be sold and regulates both whole sale and retail prices. Local boards control operating expenses associated with the sales. The profit off these sales goes directly to the county and becomes general revenue, just like taxes.

Many speculate this system leads to abuses by the ABC and county officials. In particular, The Charlotte Observer broke a story about a dinner for about 30 people, including several ABC officials, that was paid for by a liquor company called Diageo. There is concern these types of events court ABC officials into presenting more favorable markets for certain brands, like Diageo's Smirnoff and Johnnie Walker.

If the current system does lead to abuses, the state committee may recommend reform. It may also recommend privatizing the sale of liquor, but this move would be drastic as it would represent a loss of county funds at a time when a number of counties are suffering financially.