As most Pennsylvanians know, there has been a lot of chatter during the past few years about privatizing the state liquor store system.

While the General Assembly and Gov. Tom Wolf have not pulled the trigger on the big move, they have created some competition by allowing grocery stores to sell beer and wine and loosened regulations for beer distributors.In the face of competition, the private marketplace reaction is to reduce prices to be more competitive. So what did the state-owned liquor stores do? You guessed it; they are raising prices on 422 of their most popular items, most by about $1 a bottle. The increases go into effect at the end of August.In its infinite wisdom, the Legislature passed a law last year giving the LCB authority to raise prices for 150 of the top-selling brands of wine and the 150 most popular brands of spirits.PLCB communications director Elizabeth Brassell said the decision to raise prices was made by marketing and merchandising director Dale Horst after consulting with Executive Director Charlie Mooney and the board.She said the higher prices followed a review of what neighboring states charge and considering what the market will bear. Translation: Let's see how high we can raise prices without the public screaming bloody murder.Brassell said the LCB considered raising prices on 496 items but decided on a fewer number after negotiating cost concessions with suppliers. Before the 2016 law was put into effect, the LCB used a 31 percent markup rule of thumb to set prices.David Wojnar, vice president of the Distilled Spirits Council, an industry lobbying group, was quick to criticize the move. "The Legislature and the PLCB should work together to better serve Pennsylvania consumers instead of trying to pick their pockets," Wojnar said.The higher prices also drew criticism from a lobbyist for the Distilled Spirits Council, a national trade association of producers and marketers. David Wojnar, the council's vice president for government relations, said consumers would prefer more retail outlets to higher prices.There was equal disdain from John Longstreet, president of the Pennsylvania Restaurant and Lodging Association, who predicted higher prices will lead more customers to buy wine and liquor from New Jersey and other neighboring states. He renewed his call to state legislators to rein in the state monopoly or privatize the system.He accused the LCB of being incapable of operating within a reasonable cost structure. "In business, when you have excessive costs, you look for a way to reduce your costs; you can't always pass along your cost to consumers," Longstreet said.The increase will affect these top-selling brands: Jack Daniel's, Jacquin's, Captain Morgan, Bacardi, Smirnoff, Yellow Tail, Woodbridge and Sutter Home, among others.This comes along just days after the U.S. Attorney's Office in Harrisburg announced that four alcohol vendors have reached an agreement to pay a total of $9 million in penalties.According to information the office provided, company representatives provided six LCB officials with cash, trips and other kickbacks in return for favorable consideration for their companies. One of the companies, Pio Imports LLC, is located in North Wales, Montgomery County. The bottom line is that no one goes to jail, despite these outrageous disclosures and the betrayal of the public trust.Is it any wonder then that a 2014 study showed Pennsylvania was the fifth most corrupt state in the union, and we have had a bunch of public officials plead guilty, gone to jail and/or were fined since then? The study calculated the cost of corruption in the 10 most corrupt states at $1,308 for every man, woman and child.Pennsylvania received an "F" for the strength of its anti-corruption laws. That comes as no surprise as the parade of offenders just keeps on going. It won't stop until we say, "Enough!"By Bruce Frassinelli |

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