Navigating State Alcohol Sales

by KIRSTEN PARK

It’s no secret that Utah has the highest mark up in the country for wine, contributing to prices that have folks from out-of-state shaking their heads. Why else would a bottle of the pedestrian and inexplicably popular Apothic Red, which sells for $7.50 elsewhere in the country, cost twice that in Utah?  

That means finding your favorite wines on sale is key, because how else you gonna have enough spare change to buy supplies for your kid’s underfunded classroom? But if you are only looking at the wines on sale, you’re missing out on one of the best deals in Utah. 

Because while Utah has ridiculously high pricing for most wines you find in our state liquor stores, Utah also has the lowestmark up for a very select group of wines. How did that happen? 

Here’s why: small producers—think high-end boutique wineries in California who produce limited quantities of select vintages—were being choked out of the market by the state mandated mark-up, back-breaking 88%. 

Since they produce in such small volumes (under 20,000 gallons a year) their wholesale price per bottle is way more than your average mass-produced Fetzer or Gallo. That 88% mark up creates stifling price points to the consumer, especially for a little-known label that doesn’t have a brand identity here. It effectively prices our consumers out of their market, unless they happen to be extraordinarily informed on niche wineries outside of Utah. 

 So, the small producers lobbied the state for a reprieve. Never one to leave money on the table, the state’s response was, “well, a little revenue is better than none.”


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To appease these producers, and let’s face it, their size means they aren’t doing that much business here anyhow, Utah agreed to mark up their products only 49%. But the catch is THAT wine will then not qualify for the state’s SPA pricing (otherwise known as sale prices, and yes, Utah controls sales prices, not the manufacturer). They will never get that fancy card taped to the rack a few times a year reflecting a discount. If you’re a bargain shopper you might gloss over the label you’ve never seen, that’s not tempting you with a sale price, in favor of something more familiar, or discounted.

But there are great deals to be had among the small wineries who choose to retail in Utah. 

Look for an “L” in the corner of the price card. That means it’s of limited quantity and is not one of the mass-produced labels. It cannot routinely go on sale. But if it’s a really great wine, and has begun selling at a premium elsewhere, Utah’s supply will stillbe capped at a 49% mark-up. For example, a Poe 2021 Rosé routinely retails for $25 in its home state, if you can find it, because it’s considered a fine value at that price. But the state of Utah can’t capitalize on that popularity, so it’s on our shelves for only $20.04

So, here’s my pro tip for you winos: When you find an “L” product you like, and you note that it is sold for a lower here than you see it in other states, buy as many as you can fit in the back of your Tesla, because like the label says, it is limited. And when that particular bottle sells out, it’s very likely not being restocked.    


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