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Liquor Prices Play Role in Michigan's Safety

By: Hannah Saunders Email
Updated: Fri 12:31 AM, May 04, 2012

CEO of Public Action Management Pamela Erickson says Michigan sets a shining example of safety for the rest of the country: "I would just like to commend your state...it's a good blend of private enterprise involved in the business, and yet, some good regulations."

Although he state saw almost 1,000 deaths from alcohol-related crashes in 2010, it still places as the 8th safest from drinking and driving by Mothers Against Drunk Driving (MADD).

It could be because the government is keeping a careful eye on sales, but could also have to do with the price of booze being so high.

The state acts as a middle-man between distilleries who make the liquor and businesses which want to sell it.

"The (Michigan) Liquor Control Commission is required to mark up the price of that bottle of distilled spirits by 65%, and then sell it to the grocery store, restaurants and bars," explained Chairman of the Michigan Liquor Control Commission Andy Deloney.

Grocery stores then make about a 2% profit, while the state gets the majority. This makes the price of liquor up for constant debate among lawmakers.

Those for raising prices argue that if prices are even higher, people will drink less.

Those for lowering say, because prices at bars are even higher than what is paid at a grocery store, more people are drinking before they go out, for a less expensive party "buzz." Meaning, people are not only driving drunk home from the bar anymore, but also to the bar. Less expensive alcohol could mean less people would.

Governor Snyder is working with the Michigan Liquor Control Commission to go over the state's current regulation. Chairman Deloney expects him to make some new proposals in the coming future.


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