Cheaper beer and wine in Texas?
Shoppers in Texas use millions of coupons a year to shave prices for a multitude of foods and other products.
But one type of product remains off-limits to savvy consumers wanting to save money at the checkout — alcohol.
That may change.
With urging from some retailers, state officials are considering a proposal to draft rules for coupons offering discounts on beer and wine — currently illegal in Texas.
They could decide in the coming months but are already getting mixed opinions.
“It's a complex issue,” said Chris Porter, public information officer for the Texas Alcoholic Beverage Commission in Austin. “But we are weighing all the feedback and will move forward from here.
“There may be a proposal for a new rule allowing retailer coupons for beer and wine, or there may be no changes to the current rule.”
Veronica Salazarof Justin, for one, would like to see such coupons.
Salazar, a devout couponer who teachers others how to coupon as well, says she does her best to save money — and this could help.
“Alcohol is not something I buy that often, but when I host a gathering, it is something I wish we had coupons for,” said Salazar, a mother of four who operates the Couponica 101 website.
On the other hand, the Wholesale Beer Distributors of Texas hopes no changes are made.
“We strongly believe that participation in these types of schemes … sends the wrong message to the public and promotes irresponsible marketing practices that contravene the state’s policy goals of discouraging over consumption,” the trade association wrote in a letter.
Under consideration
The alcohol commission initially brought up the possibility of coupons in January but temporarily pulled the idea off the table amid a variety of questions, including whether coupons should be allowed in grocery stores, liquor stores or wholesale stores.
All those options remained on the table when the idea was reintroduced recently in Austin.
“TABC wanted to gauge opinion within the industry to see if there should be a change to the current rule prohibiting coupons,” Porter said. “We will use feedback to determine where we go from here.”
If the agency does decide to bring up a coupon proposal, it will be published in the Texas Register, and businesses and consumers will be able to weigh in on the issue.
Mixed opinions
Some retailers including Kroger were quick to support a coupon change.
“The use of discount coupons is a time honored and legal practice,” Gary Huddleston, director of public affairs for Kroger, wrote to the agency. “Today, both paper coupons and electronic coupons are helping retailers increase sales and customer loyalty.
“No retailer is forced to follow any particular practice utilizing either paper or electronic coupons,” he wrote. “The customer benefits with a lower retail price.”
Some people have expressed concern that locally owned liquor stores might not be able to compete with larger grocery stores or warehouses with alcohol coupons, because the stores would have to absorb the cost of the discount.
“It could be another tool for the big guys,” said Robert Chicotsky, co-owner of Chicotsky’s Liquor Store in Fort Worth. “It would hurt the small guys who do not advertise.”
“Each local retail store would eat the cost of the coupon, and their thin profit margins can’t afford to be cut any further,” said Jacob Lumby, an associate instructor of personal financial planning at Texas Tech University in Lubbock and founder of cashcowcouple.com, which offers information on how to save money.
But that’s nothing new, Lumby said.
“Scale continues to be an important factor in the pricing of any good or service, and that’s not going to change because everyone loves a good deal,” he said.
Any details about possible coupons for beer and wine are still in flux, Porter said, because there’s no firm proposal on the table yet.
Even so, the Distilled Spirits Council of the United States sent a letter opposing coupons.
“We look forward to working with the Commission to achieve a vibrant marketplace that is in keeping with the basic tenets of a free, non-discriminatory enterprise system where all the stakeholders in the Texas marketplace can compete on a level playing field,” Dale Szyndrowski, vice president for the central region of the trade association, said in the letter.
A bargain for shoppers?
Some local shoppers — and coupon enthusiasts — say they hope state officials seriously consider allowing the coupons.
Laura Thornquist, 47, of Flower Mound uses coupons to try items she generally wouldn’t otherwise buy.
“Using a coupon for alcohol is no different for me than using it on yogurt, cereal or produce,” said Thornquist, who maintains the MyDFWMommy.com website, offering information about coupons and other deals. “I’m not a heavy drinker, but I do like my libations.
“I would use a coupon to try a different brand of alcohol/beer/wine as opposed to my ‘regular’ brand, especially if I can get it a bit cheaper,” she said. “I can see this working very well for alcohol.”
An analysis of economic merits of the coupon proposal, conducted by the University of Texas at Arlington, indicates that “coupons would be beneficial to consumers and the alcoholic beverage industry as a whole,” said Roger E. Meiners, chairman of the university’s economics department.
Natalie Reid said she believes the coupons would be good news for consumers.
“I’m excited about the potential savings for shoppers,” said Reid, of Flower Mound, who runs the money-saving website CouponCrazyMommy.com.
“I’m personally not very brand loyal, so if I have a coupon for a product, I’m more likely to purchase it over a similar product that’s not offering a discount.”
Anna M. Tinsley, 817-390-7610
This story was originally published August 3, 2015 at 12:22 PM with the headline "Cheaper beer and wine in Texas?."