OLCC budget cuts could hurt distilleries
Wednesday | 15 April 2009 CategoriesIn the news
KDRV-TV
By Tove Tupper
» Click here to view TV clip
ASHLAND, Ore. - The Oregon Liquor Control Commission is facing proposed budget cuts that could create a negative ripple down effect to Oregon spirit makers.
The legislature asked the OLCC to forecast what its budget would look like if it had to make a 5-percent cut for the next biennium. One proposal includes cutting the re-pack service to liquor agents, a service Oregon distillers say they rely on to sell their products. A re-pack is when the OLCC re-stocks a case with a specific number of bottles so liquor agents don't have to order an entire case.
Ashland-based Cascade Peak Spirits CEO Diane Paulson is concerned the proposed cut could put her and other Oregon micro-distilleries out of business.
"This is such a small industry, it really needs support in every way it can," says Cascade Peak Spirits CEO Diane Paulson... "Smaller distributors don't sell as much in a liquor store, so they often need to just re-stock a little," says Paulson.
Paulson says Oregon distillers are mimicking the success of Oregon's micro-breweries and wineries, but fears getting rid of the re-pack service would ruin that opportunity, because in Oregon, the OLCC is it's only customer.
"It's an industry that's just growing, and when something is just growing you can't take its structure out. The infrastructure that supports it which is OLCC," says Paulson.
"When we're asked to proposed cuts in each of our funds, we have to make some really hard decisions," says Christie.
The OLCC says cutting it's re-pack service would potentially save $708,000. It would also eliminate 7 full time positions within the agency.
» Click here to view TV clip
By Tove Tupper
» Click here to view TV clip
ASHLAND, Ore. - The Oregon Liquor Control Commission is facing proposed budget cuts that could create a negative ripple down effect to Oregon spirit makers.
The legislature asked the OLCC to forecast what its budget would look like if it had to make a 5-percent cut for the next biennium. One proposal includes cutting the re-pack service to liquor agents, a service Oregon distillers say they rely on to sell their products. A re-pack is when the OLCC re-stocks a case with a specific number of bottles so liquor agents don't have to order an entire case.
Ashland-based Cascade Peak Spirits CEO Diane Paulson is concerned the proposed cut could put her and other Oregon micro-distilleries out of business.
"This is such a small industry, it really needs support in every way it can," says Cascade Peak Spirits CEO Diane Paulson... "Smaller distributors don't sell as much in a liquor store, so they often need to just re-stock a little," says Paulson.
Paulson says Oregon distillers are mimicking the success of Oregon's micro-breweries and wineries, but fears getting rid of the re-pack service would ruin that opportunity, because in Oregon, the OLCC is it's only customer.
"It's an industry that's just growing, and when something is just growing you can't take its structure out. The infrastructure that supports it which is OLCC," says Paulson.
"When we're asked to proposed cuts in each of our funds, we have to make some really hard decisions," says Christie.
The OLCC says cutting it's re-pack service would potentially save $708,000. It would also eliminate 7 full time positions within the agency.
» Click here to view TV clip