Government

Beverage Distributors, Liquor Lobby Prove Generous to R.I. Lawmakers

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Rhode Island is one of two New England states without a bottle bill. New Hampshire is the other. (istock)

PROVIDENCE — The state’s beverage distributors and liquor stores have been quietly ramping up their political donations over the past few years. The businesses, which deal exclusively with the wholesale or retail sale of beer, wine, and spirits, have been a key opposition group to the introduction of any kind of bottle redemption system, claiming it would raise business costs and make them uncompetitive with neighboring states.

Beverage distributors are particularly generous to state lawmakers. According to data from the state Board of Elections, senior leadership and employees of Horizon Beverage have donated a combined $76,900 to state politicians since the start of 2020, including multiple donations to Gov. Dan McKee; House Speaker Joe Shekarchi, D-Warwick; and Senate President Dominick Ruggerio, D-North Providence; as well as other members of the House and Senate.

The other beverage distributor in the state, the Rhode Island Distributing Co., also known as Mancini Beverage, has been almost as generous to lawmakers. Campaign records show senior leadership and employees of the company have donated $53,750 since 2020, with a similarly wide spread for donations as Horizon.

Neither Horizon Beverage or Mancini Beverage returned requests for comment.

The chief recipient of donations in the second quarter of this year was Shekarchi. Campaign finance records from Shekarchi’s campaign show he collected $28,500 in donations from beverage distributors and liquor stores.

“My long-standing policy is that no donations to my campaign have any impact on the policies we discuss in the legislature,” said Shekarchi in a statement to ecoRI News. “All donations I receive are in full compliance with state guidelines and everything is properly documented on my campaign report.”

Meanwhile, it’s not just the wholesalers — individual liquor stores are donating too. Nicholas Fede, the owner and operator of Kingstown Liquor Mart and executive director of the Rhode Island Liquor Operators Collaborative, has donated $13,850 to various state lawmakers over the past three years, mostly in small-dollar donations when compared to the liquor distributors.

Fede did not respond to a request for comment.

All three businesses have testified against bottle bill legislation, and representatives from each company, including Fede, gave a presentation during the General Assembly’s bottle bill study commission on why they thought introducing the program was a bad idea for the state.

During a January meeting, Fede and others testified it would be onerous for liquor stores to operate as redemption locations, and such legislation would make liquor stores near the border with Massachusetts economically uncompetitive.

Environmental groups and other advocates have been lobbying lawmakers for years to pass a bottle deposit system in Rhode Island, also known as a bottle bill. The system it sets up is pretty simple. Consumers pay a fee, commonly 5 or 10 cents, for every bottle they purchase at a store, whether alcohol, soda, or water. After use, bottles are returned to a redemption center of some kind, where the consumer can redeem their bottles and receive the deposit back.

Bottle bill systems have been active in other states as early as the 1970s, and both Massachusetts and Connecticut have such legislation on the books. For advocates, it’s a key solution in handling the litter problem that has arisen from single-use plastic bottles and other containers. Nips have become an egregious symptom of the litter issue, with environmental groups organizing nip and litter pickups that remove thousands of nips from highway entrances and on-ramps, parking lots, and open space areas.

More than 26,000 tons of plastic is getting buried in the Central Landfill in Johnston every year, according to a joint report released by the Rhode Island Department of Environmental Management and the Rhode Island Resource Recovery Corporation. Only one out of every four pieces of plastic waste produced by Rhode Island homes is recycled in the state’s system.

A bottle bill isn’t the only issue for the state’s beverage distributors and liquor stores. In the past, industry groups and business owners have lobbied lawmakers for lowering sales and excise taxes on beer, wine, and spirits, keeping in line with their overarching theme of maintaining economic competitiveness with neighboring states.

They have also lobbied hard against liberalizing the state’s liquor licenses and allowing bigger, out-of-state chains to begin selling alcohol. Last year the Rhode Island Current reported the industry strongly opposed a House bill that would have allowed grocery stores and convenience stores to sell beer and wine. Liquor store owners told lawmakers the bill was a job-killer, that their businesses would close if they had to compete with chains such as Cumberland Farms and Stop & Shop — to say nothing of bigger wholesalers like Costco and BJ’s.

This year’s bottle bill was once again held in committee, and the study commission on the issue had its reporting deadlines extended. Despite the bill’s demise, its sponsor, Rep. Carol McEntee, D-South Kingstown, has pledged to keep reintroducing the legislation until it passes.

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  1. It is absolutely disgusting that the legislature will not pas a bottle bnill. I testified in recent years, and we all know the bottlers lie like a rug. They have nothing to reduce litter and want us to pay the price. Criminals all.

  2. Sad that legislative leaders seem to be bought off by pro-litter liquor interests. It’s now even worse as they market “nips,” a pervasive source of litter, but they don’t care. And what nonsense about competing with neighboring states – they both do have a bottle bills! The liquor industry is indeed powerful force in the legislature, not just promoting litter but also by preventing sales in grocery stores, making it hard to order on-line from out of state suppliers, even getting a sales tax exemption for their sometimes dangerous product (not that I don’t enjoy an occasional glass of tax-free cabernet!)

  3. All the arguments against the bottle bill that the industry makes have been made over and over and over again–yet other states have implemented these bills and figured out how to deal with these problems (and, incidentally, developed a new industry redeeming deposit containers). Why can’t RI talk to people in NYS, MA, ME, and VT about how they manage to deal with all these problems? (I lived for 45 years in state with bottle bills. One thing that helped keep public areas clean is that people could collect these things for MONEY! And they did.)
    The big problem I see is the 10 cent deposit. Why? We’re going to have people going over the line to MA, paying 5 cents, and bringing the empties back in RI for a 100% return on investment.

  4. According to the CDC, excessive alcohol use is the leading cause preventable deaths (referred to as years of potential loss of life) and costs the USA $250 billion plus per year. Recent studies have demonstrated that moderate drinkers are at risk for serious diseases as well. Why on earth would legislators want to protect/subsidize this industry? In addition to the very serious health consequences, the industry works hard to resist the bottle bill and thereby fosters environmental damage. Tobacco used to be the number one killer. It is time, please, to hold the alcohol industry accountable.

  5. The governor and legislature are in the pockets of liquor distributors. As an ancillary note, distributors are fighting opening up the state to competition from out of state liquor sales under the guise of health concerns, that it will cause more alcohol disease. How disingenuous can you get? They even got the state board of health to agree to such an asinine position. Yes, corruption is part of Rhode Island’s legislature. Sherkachi is bought and paid for.

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