Gov. Bob McDonnell's bill to privatize liquor retailing in Virginia would guarantee $200 million in up-front cash and perhaps cheaper booze prices thanks to lower wholesale markups.Details of the bill The Associated Press obtained Tuesday confirm that McDonnell's revised plan would auction away the state's liquor retail outlets, but the state would remain the lone wholesaler.
The bill will set four levels of licenses ranging from big grocery chains to mom-and-pop stores. It allows restaurants and hotels to buy liquor from private retailers.
But it also reduces the wholesale mark-up for distilled spirits from 69 percent now to 50 percent, affording retailers a wider profit margin, drinkers cheaper booze, or a little bit of both.
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