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- Public Health
A North Carolina proposal to raise the price of some of the cheapest
liquor sold in the state is being presented in part as a public health measure
aimed at reducing excessive drinking, particularly among teens and young
adults
WRAL Investigates reviewed the North Carolina Alcoholic Beverage
Control Commission’s more than 100-page report that shows public health is only part
of the equation. The commission also identifies generating revenue as a central
goal of the proposal
After WRAL’s initial report on the proposed minimum pricing policy, more
than 200 viewers sent questions and comments, many expressing skepticism about
the commission’s public health argument for increasing liquor prices. WRAL
Investigates reviewed the commission’s full report to examine the reasoning
behind the proposal
On page 6, the commission states that control and revenue are co-equal
goals of the policy. Under the proposal, the state would establish minimum
base prices for certain liquor products, primarily affecting some of the least
expensive liquor currently available in North Carolina ABC stores
The commission argues that increasing the price of inexpensive,
high-volume alcohol products could discourage excessive consumption. But the report
also examines how the policy could increase liquor sales revenue
ABC estimates at least $5 million in additional annual
retail sales
The commission estimated the proposed pricing changes could generate
about $5 million a year in additional retail sales from 11 products included in
its analysis
That figure does not capture the proposal’s entire potential impact
The commission said it could not calculate the effect on products from
another 12 suppliers because it did not have the sales-volume data necessary to
do so. Due to that missing information, the report describes the $5 million
figure as a “floor on the estimate rather than a projection.” That means the
total increase in retail sales could be higher
Liquor sales volume nearly flat while sales dollars
rise
WRAL Investigates also examined recent ABC sales data to look at whether
North Carolinians are buying more liquor than in previous years. Comparing May 2025 with May 2026,
sales volume among the state’s top-selling 100 liquor products increased just
0.4%
Sixty-six of those 100 products actually sold fewer units. At the same time, the amount of money generated by liquor sales
continued to rise. Statewide ABC sales reached $155.8 million in June 2026, an increase of
3.08% compared with June 2025
The commission’s report points to an important distinction between
rising sales dollars and rising consumption. On page 10, it says the difference
between relatively flat sales volume and higher sales revenue reflects higher
prices and changes in the mix of products consumers are purchasing, “rather
than consumption growth.”
In other words, recent increases in ABC sales do not necessarily
mean North Carolinians are buying substantially more liquor
Inflation plays a role
With people looking for ways to save, ABC Chairman Hank Bauer, says more
customers are turning to cheaper liquor. That may save consumers money, but Bauer
says it also means less money coming into the ABC system
“Our dollars were down last year 1.27 percent, but case sales have been
up every year since I’ve been here since 2021. We’re
shipping more cases, we’re selling more cases, but the dollars are going down
because we’re selling these inexpensive products,” Bauer said
Public health or revenue? ABC says both
The commission’s report makes clear that the proposed minimum-pricing
policy is intended to accomplish two things: discourage excessive alcohol
consumption and increase revenue
The commission has not yet adopted the minimum-pricing plan and has said
additional North Carolina-specific research is needed before moving forward
The next monthly meeting of the North Carolina ABC Commission is
scheduled for Sept. 9, 2026, at 10 a.m. at the commission’s headquarters at 400
E. Tryon Road in Raleigh


