State seeks bids for wholesale liquor contract
Maine is seeking bids for a 10-year contract to run the state’s wholesale liquor operations, from 2014 to 2024. Bidders have been asked to submit two proposals -- one for warehousing and distribution of liquor throughout the state and another for marketing and advertising.
The Portland Press Herald reported the contract, which will replace the state’s 10-year contract with Maine Beverage Co. that expires in mid-2014, is expected to generate upwards of $592 million in gross profits. Documents included in the state’s request for proposals show a projected gross profit of $46.2 million for 2015, which is anticipated to increase annually to a total of $66.5 million in 2024, the paper reported.
The paper reported that from 2004 through 2012, Maine Beverage generated about $339 million in gross profits after state revenue sharing and that its total operating income over that time was $286.5 million.
Ford Reiche, president of Dirigo Spirit Co., which plans to submit a bid for the state’s liquor contract, told Mainebiz in an email that the state’s RFP, crafted by Gov. Paul LePage and the Legislature, is a “very well thought-out plan to solicit competitive proposals that will improve the state’s financial standing by tens of millions of dollars annually.”
All Maine Spirits, another Maine-based bidding group, told the Press Herald it is putting together a proposal for the state’s liquor contract.
A bidders’ conference will be held on Oct. 16. Deadline for submitted questions is Oct. 18 and the deadline for proposals is Nov. 14.
In September, the state sold a $220 million bond that will be repaid with revenues from the liquor contract. The proceeds of the bond offering were used to repay $183.5 million in debt the state owed to Maine hospitals.
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