Idaho liquor tasting plan dries up under rule of department

TWIN FALLS - A proposal to allow free tasting events featuring top-shelf scotch, bourbon, gin and other booze at state-owned liquor stores has been nixed by the Idaho Department of Financial Management.

The idea was floated last month by State Liquor Dispensary Chief Dyke Nally, one of four proposals from his agency being vetted for consideration by the 2010 Legislature.

Nally suggests that in-store tasting events, like those held in restaurants or in other states that own liquor stores, could boost sales of premium spirits by millions of dollars each year.

"It has generated more sales for other states," Nally told the Times-News. "It's not about trying to sell more liquor, but to sell more expensive liquor."

But the Division of Financial Management balked at the idea. The office is overseen by Gov. C.L. (Butch) Otter and managed by Otter's budget director Wayne Hammon.

Hammon said the problem is the tasting proposal represents a piecemeal reform that conflicts with the governor's preference for taking a more comprehensive approach to changing Idaho's liquor laws.

"Idaho may not be ready for that," Nally said. "The problem is our (constitutional) mission is to promote temperance, not sales, so that's a lot of thinking when these alcohol bills come up."

Other states that operate liquor stores have reported success in tasting events. For example, Pennsylvania in 2008 reported more than one in four customers bought a bottle of what they tasted, Nally said.

Despite the struggling state economy, the state liquor dispensary has reported increased revenue over the past several years. The increase has been driven by higher sales of more expensive varieties of alcohol, according to agency figures.

The dispensary reported sales of $135.1 million for fiscal year 2009, which ended June 30. Sales for 2009 were up 3.3 percent compared to $130.8 million reported in fiscal year 2008, according to agency figures.