A Double-Edged Proposal: Increasing Liquor Prices in North Carolina

A North Carolina proposal to raise the price of some of the cheapest liquor sold in the state has left many wondering if the intention is to promote public health or to generate revenue. On the surface, the proposal appears to be a public health measure aimed at reducing excessive drinking, particularly among teens and young adults. However, WRAL Investigates reviewed the commission's over 100-page report, which reveals that public health is only part of the equation.

The commission not only identifies public health as a central goal but also acknowledges that generating revenue is an equally important objective. This dual intention has raised concerns among consumers, who are left wondering what the proposal's ultimate goal is.

In an effort to understand the reasoning behind the proposal, WRAL Investigates examined the commission's full report, which provides a detailed analysis of the potential impact of the proposal. The report points out that control and revenue are co-equal goals of the policy, demonstrating the commission's commitment to addressing both public health concerns and financial needs.

Under the proposal, the state would establish minimum base prices for certain liquor products, primarily affecting some of the least expensive liquor currently available in North Carolina ABC stores. The commission argues that increasing the price of inexpensive, high-volume alcohol products could discourage excessive consumption. However, the report also examines how the policy could increase liquor sales revenue, suggesting that the commission is exploring multiple avenues to address its objectives.

The commission estimates that the proposed pricing changes could generate about $5 million a year in additional retail sales from 11 products included in its analysis. However, this figure does not capture the proposal's entire potential impact, as the commission was unable to calculate the effect on products from another 12 suppliers due to a lack of sales-volume data.

Liquor sales volume nearly flat while sales dollars rise. WRAL Investigates analyzed recent ABC sales data to look at whether North Carolinians are buying more liquor than in previous years. The results show that, although sales volume among the state's top-selling 100 liquor products increased by only 0.4% in May 2025 compared to May 2026, the amount of money generated by liquor sales continued to rise. Statewide ABC sales reached $155.8 million in June 2026, an increase of 3.08% compared with June 2025.

The commission's report points to an important distinction between rising sales dollars and rising consumption. On page 10, it says the difference between relatively flat sales volume and higher sales revenue reflects higher prices and changes in the mix of products consumers are purchasing, rather than consumption growth. This means that recent increases in ABC sales do not necessarily mean North Carolinians are buying substantially more liquor. The report highlights the significance of this distinction and encourages readers to consider the potential implications of this finding.

According to an ABC Chairman, Hank Bauer, more customers are turning to cheaper liquor as a result of changes in consumer behavior. Bauer states that while this may save consumers money, it could also result in less money coming into the ABC system. He emphasizes the importance of considering the broader impact of the proposal and its potential effects on revenue and public health.

The commission's report makes clear that the proposed minimum-pricing policy is intended to address both public health concerns and revenue generation. The commission has not yet adopted the minimum-pricing plan and has said additional North Carolina-specific research is needed before moving forward. The next monthly meeting of the North Carolina ABC Commission is scheduled for Sept. 9, 2026, at 10 a.m. at the commission's headquarters at 400 E. Tryon Road in Raleigh.