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  1. #1
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    The cost of spirits

    There have been various threads on the cost of bourbon, taxes, the impact of the various state ABCs, etc.

    I came across this article that explains how it all adds up (in this instance in North Carolina).

    Some excerpts:

    The distiller's base price for a case of 12 bottles of Aristocrat Vodka, for example, is $5.79 – just less than 50 cents a bottle.

    Then a federal excise tax, distiller's freight charges and bailment charges for the warehouse storage are added, and that case's price goes up to $32.91.

    Then the local ABC board tacks on a 39 percent markup that's used to generate profit, bringing that price to $45.74, and then state taxes, additional markups and another bailment surcharge bring the case to a total of $61.92. With bottle charges added and an 8 percent sales tax added, that's $5.67 per bottle purchased at the ABC store.
    John B

    "Drinking when we are not thirsty and making love at all seasons… that is all there is to distinguish us from other animals."

  2. #2
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    Re: The cost of spirits

    After reading that I'm pissed off again John.
    Joe
    Colonel Joseph B. "Bourbon Joe" Koch

    "Bourbon.....It's cheaper than therapy!!"

  3. #3
    Bourbonian of the Year 2010 and Guru
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    Re: The cost of spirits

    And I'd be willing to bet that at least 10% of that base price of $0.50 per bottle is made up of taxes too...payroll taxes, property taxes, energy taxes, etc.
    2010 Bourbonian of the Year

    As long as you have good whiskey you're not "unemployed", you're "Funemployed!!!"

    I'm no Pappyophile

  4. #4
    Connoisseur
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    Baldwin, Maryland
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    Re: The cost of spirits

    It just doesn't cost much to distill cheap(or premium) vodka. No aging of spirit, etc. Packaging is most likely the highest cost.
    Dave G.

  5. #5
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    Re: The cost of spirits

    Quote Originally Posted by dgonano View Post
    It just doesn't cost much to distill cheap(or premium) vodka. No aging of spirit, etc. Packaging is most likely the highest cost.
    Agree. But I'm willing to bet the rest of the economics (e.g., taxes and markups) apply comparably to bourbon and other aged spirits.
    John B

    "Drinking when we are not thirsty and making love at all seasons… that is all there is to distinguish us from other animals."

  6. #6
    Advanced Taster
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    NJ
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    Re: The cost of spirits

    Discussed this article with a buddy and he pointed me to this document:

    http://www.taxfoundation.org/taxdata/show/245.html

    Interesting to see what other states charge

  7. #7
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    Re: The cost of spirits

    I would be so much easier and cheaper to just distill our own stuff.
    “Giving money and power to government is like giving whiskey and car keys to teenage boys.” - P.J. O’Rourke
    Greg's "bourbondork" blog

  8. #8
    Virtuoso
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    Re: The cost of spirits

    Quote Originally Posted by ggilbertva View Post
    I would be so much easier and cheaper to just distill our own stuff.
    This is exactly what I was just thinking!!
    We need to start up the SB distillery and d lots of quality control by sampling evry bottle we produce.
    "Brownest of the brown liquors..so tempting. What's that? You want me to drink you? But I'm in the middle of a trial!" L. Hutz

  9. #9
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    Re: The cost of spirits

    Quote Originally Posted by ggilbertva View Post
    I would be so much easier and cheaper to just distill our own stuff.
    I'm considering going into the premium brandy biz. One thing that is VERY evident is the artistry, skill, science, and experience involved in producing a quality product. You factor that in, and you'll find its easier to buy good bourbon than to make it at home. My name is not Russel or Beam or Handy or Van Winkle or ... so there's no way I know how to make the good stuff without a huge amount of costly practice.

  10. #10
    Advanced Taster
    Join Date
    Dec 2006
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    224

    Re: The cost of spirits

    Don't know what happened with this
    http://democrats.assembly.ca.gov/mem...2AD24PR01.aspx


    It's crazy how you can say "290% increase on spirit tax, 1100% on win tax, 400% on beer tax" and have people say that they are OK with it. They already raised the cost by 1% with the increase in sales tax.

    I hate this state...

 

 

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