Privatization is the repeal of governmental control over alcohol sales, thus permitting commercial retailing of alcoholic beverages. Privatization usually applies to off-premises or retail outlets such as liquor stores, where alcohol is sold for consumption elsewhere. It usually does not affect on-premises alcohol outlets like bars and restaurants, where alcohol is sold for consumption on-site.
The Task Force recommends against the further privatization of alcohol sales in settings with current government control of alcohol sales, based on strong evidence that privatization results in increased per capita alcohol consumption.
Evidence for this finding comes from 21 studies that examined the impact of alcohol privatization on per capita alcohol consumption. These studies concluded that following privatization, consumption of privatized beverages increased substantially, while there was little effect on consumption of non-privatized beverages. This resulted in an overall increase in per capita alcohol consumption.
Privatization may lead to increased consumption for a variety of reasons. First, privatization commonly results in increases the number of off-premises outlets, days, and hours of alcohol sales, all of which have been shown to lead to excessive alcohol consumption and related harms. Greater availability of alcohol is also associated with increases in social harms including interpersonal violence and vandalism. Increases in alcohol advertisements, number of brands sold, and less stringent enforcement of sales regulations may also accompany privatization. According to the Task Force, maintaining government control of off-premises alcohol sales is an effective strategy to prevent or reduce excessive consumption, a leading cause of preventable death and disability.
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