Maryland Comptroller Peter Franchot was a pivotal figure in dismantling the previous liquor monopoly in Worcester County. It was his office’s investigators that launched an investigation into alleged malfeasance and illegal purchases. Along with his investigation, Franchot was adamant about removing government from what should be a private sector-only industry.
In Worcester, the former Liquor Control Board has been dissolved and in its place a new Department of Liquor Control was established. That will eventually no longer exist because it lost its monopoly on the wholesale industry last summer and has withered on the retail side in the face of additional private stores. It has become irrelevant for private consumers and it has lost too many huge commercial accounts to remain sustainable.
Franchot has now set his sights on Montgomery County where a retail and wholesale monopoly also exists. He penned an opinion piece that was published in The Washington Post on Sunday that caught my attention. Many of the same claims he expressed were similar to what he was saying five years ago in Worcester. The key difference is Montgomery County’s dispensary is a much larger operation due to a larger customer base derived from a huge residential population and much more commercial customers.
“Every day, scores of residents leave Montgomery County to buy alcohol in the District, Northern Virginia and Prince George’s County. This shouldn’t be surprising, considering you can buy a bottle of Absolut vodka for 42 percent less or a bottle of Patrón Silver tequila for 26 percent less than what you’d pay at a government-run store just by crossing the Montgomery County line,” Franchot wrote. “Unlike any other jurisdiction in Maryland, Montgomery County directly controls both the retail sales of liquor and the wholesale distribution system. Therefore, every alcoholic beverage bought in Montgomery County, including beer and wine or an adult beverage at a restaurant or bar, must be purchased through the government. In a highly competitive industry, in a county that neighbors five jurisdictions, our local government has a monopoly over the alcohol we buy. As Maryland’s chief tax collector and the state’s regulator of alcohol, I have no doubt that the economic activity generated by lifting the monopoly and allowing for an open, competitive market would more than offset any small amount of lost revenue to the county’s $5 billion operating budget. Don’t just take my word for it: Look at the facts in Worcester County, until recently the only other jurisdiction in Maryland that operated a wine and liquor distribution monopoly. Legitimate competition there has led to better service, more choice, a better small-business environment and a healthier local economy.”
Franchot plans to introduce legislation in next year’s General Assembly session to end Montgomery’s alcohol monopoly. It would keep the dispensary and its stores, but allow purchasers an option, similar to what happened here. My guess is this bill will go nowhere in its first year, but it will be interesting to track in the future.
During a discussion this week about how well Ocean City fared this summer compared to others, MGH Advertising President Andy Malis, the head of the town’s contracted marketing agency, talked about further reaching into New York to try and educate more areas of the state about Ocean City and its free beaches. That’s of note because not all beaches are free along the Jersey shore, of course.
In Ocean City, there is no standalone charge to use the beach. Conversely, that’s exactly the case in New Jersey where most beaches charge for daily, weekly or seasonal badges for beach use. Depending on when the badges are purchased, the one-time fee can range from $15 to $105. For example, in Avalon, N.J. this year, beach badges cost $6 per day or $12 per week or $22 for the season if purchased prior to May 23 and $26 if after May 31. As a comparison, seasonal badges at Bradley Beach cost $70 for ages 16 to 65 and daily badges cost $8.
For us in this area, it’s difficult to imagine Ocean City charging for beach access, but it’s not a completely foreign concept, as we do pay to use Assateague, although it’s a nominal annual fee, not just seasonal. It’s also different because it’s a state park and national park.
Either way, it’s wise for Ocean City to tackle the fact its pristine beaches are available at no charge throughout the year through its marketing and to target areas where free beaches are unusual. It’s a message that’s bound to resonate. Recent years show that’s the case.
“We’re looking at expanding our reach into upstate New York and beyond and get them to bypass the Jersey shore. The further away, the less likely they come for just the weekend,” Malis said. “We’ll always emphasize our free beach. Even though it’s a modest amount of money, you have to pay to go to the beach in New Jersey and that works to our advantage.”