No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveHigh Court Strikes Down Part of Guaro Monopoly

High Court Strikes Down Part of Guaro Monopoly

With Executive Branch plans to lift state monopolies on telecommunications, insurance and fuel already generating discussion this week (see separate story), the Judicial Branch ruled against a monopoly on another product: guaro.

Before the decision from the Constitutional Chamber of the Supreme Court (Sala IV), the National Liquor Factory (FANAL) had the exclusive right to produce, market and sell the liquor, 30% alcohol by volume, in Costa Rica. The factory’s Cacique brand is among its top sellers.

Sala IV justices voted June 14 to uphold FANAL’s exclusive right to produce guaro, but allow other companies to import and sell the liquor, according to the daily La Nación.

A suit filed in 2004 by Marvin Arce, the representative in Costa Rica for Salavadoran guaro Cañal, prompted the justices’ decision, the daily reported. The two justices who dissented, of a total of nine, wrote in their opinion that the Legislative Assembly, not the Sala IV, is the place to decide the future of the FANAL monopoly.

President Oscar Arias, asked about the ruling Monday, said that he hasn’t mentioned the Liquor Factory in his criticisms of monopolies because it’s “less important,” but that the Sala IV ruling “would benefit all of us who drink alcohol if there were competition, because we wouldn’t have to drink only Cacique.” (He added that Cacique is, nonetheless, “very good.”)

He did not comment on the possibility that FANAL would be closed, saying he needed to speak with Production Minister Alfredo Volio; however, Volio told the daily Al Día he thinks “the state should be doing more important things” than producing and selling liquor.

Carlos Villalobos, manager of FANAL, told La Nación that the production of illegal liquor, without Public Health Ministry approval and without paying taxes, has diminished the factory’s share of the market; FANAL sold 840,000 cases of Cacique in 1999 and only 490,000 last year.

 

Trending Now

Draw for 2026 World Cup Kind to Favorites as Trump Takes Center Stage

Holders Argentina and leading contenders Spain were handed kind draws for the 2026 World Cup in a star-studded ceremony on Friday which saw US...

Trump Threatens Serious Consequences Over Razor Thin Honduras Presidential Race

US President Donald Trump warned Monday of “serious consequences” if a supposed attempt to “change” the results of Honduras’s presidential election is confirmed, as...

Bachelor Star Cassie Randolph Weds Musician in Intimate Costa Rica Wedding

American reality TV star Cassie Randolph tied the knot with musician Brighton Reinhardt in a private ceremony at The Point Luxury Villa in Tamarindo....

Bad Bunny Wows Costa Rica Crowd with Hits and Heartfelt Words

Bad Bunny delivered a powerful performance last night at the National Stadium, kicking off two sold-out dates on his DeBÍ TiRAR MáS FOToS World...

Expanded 2026 World Cup Draw Brings New Faces and Big Risks

The countdown to the 2026 World Cup, the biggest in football history, begins this Friday with the draw ceremony in Washington, with Donald Trump...

Inter Miami Crowned MLS Champion as Messi Orchestrates Historic Final

With three goals created by Lionel Messi, Inter Miami were crowned champions of Major League Soccer (MLS) for the first time, beating the Vancouver...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica