Two potential bidders rankled by latest liquor plan
The latest legislative proposal over how Maine will renegotiate its lucrative liquor wholesale distribution contract has rankled leaders of the two companies planning to compete with the current contract holder for the new pact.
The Sun Journal reported that legislation proposed last week by state Senate leader Seth Goodall, D-Richmond, is being challenged by Dirigo Spirit and All Maine Spirits, who say the proposal mimics the terms of the current 10-year contract held by Maine Beverage Co.
Goodall's proposal would retain the management structure of the current contract while a competing proposal from the LePage administration calls for the state to take over monitoring inventory, managing accounts and advertising and coordinating with suppliers.
The LePage bill also does not require any upfront payment from bidders while Goodall's bill would ask for either $20 million or $200 million upfront — a payment decision that would affect the amount of long-term annual profits negotiated in the terms of the deal.
Ford Reiche, head of Dirigo Spirit, told the paper he takes issue with the Goodall bill's requirement that winning bidders make either a $20 million or $200 million upfront payment to the state, which he says limits the potential bidders for the contract.
Josh Tardy, a lobbyist for Maine Beverage Co., told the paper that the company likes Goodall's proposal because it retains the fully private management structure of the current contract while LePage's proposal would put some functions back in state control. Tardy said a private management structure keeps any risk involved with the contract on the shoulders of the vendor and not the state.
Goodall has also taken issue with the LePage proposal tying renegotiation of the liquor contract to a payback plan for the state's MaineCare debt.
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