You are half right - Many of the local distillers are scared to death of the privatization bill - They think they will go bankrupt if they have to deliver, distribute or market their products.  There are many part-time distillers who are plenty happy bottling a products, boxing it up, and letting OLCC do everything else.  What they don't factor into this thought is the local liquor store employees have no idea what they stock, have no idea what is good or bad, and could care less if any of the products are local or otherwise.

If you get rid of a 100 year old antiquated government controlled system and replace it with an open free market - the best of the best local producers will suddenly explode in popularity and profit - the producers who put little to no effort into their product and business will get left behind and overruled by the big national brands.

Problem is - the big money has spent all the time and money on scaring the second group of producers into not signing.