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

Costa Rica Offers Walk-In Immigration Fingerprinting in San José Today

Costa Rica is offering a special fingerprinting service in downtown San José this morning, giving foreign residents and immigration applicants an opportunity to complete...

Heading Out for Halloween in Costa Rica? Expect More Police on Patrol

Costa Rica police will patrol cemeteries, churches, bars and costume parties this Halloween weekend. Here's what to expect if you're heading out Oct. 31.

El Salvador’s Marcelo Arévalo Qualifies for ATP Finals Despite Vienna Upset

El Salvador’s Marcelo Arévalo and Croatian partner Mate Pavić have secured their place in the 2026 ATP Finals for the third consecutive year, although...

Tamarindo Celebrates Halloween Weekend With Costume Surfing, Parades and Beach Parties

Tamarindo is getting ready for a Halloween weekend that promises everything from surfers riding waves in costumes to trick-or-treating, costume contests, live music and...

Costa Rica’s President Invites Pope Leo XIV to Visit in 2027

President Laura Fernández formally invited Pope Leo XIV to visit Costa Rica during a private audience at the Vatican, proposing a trip in 2027...

JetBlue First Class Is Coming to Three Costa Rica Routes This Winter

JetBlue's BlueFirst first class reaches Liberia Dec. 26 and San José Jan. 5. Here is what the new cabin includes.

Costa Rica Unveils New ₡100 Coin Celebrating Limón Calypso

Costa Rica is paying tribute to one of its most distinctive musical traditions with a new ₡100 coin celebrating Limón calypso, a genre deeply...

High Tides Flood Homes in Costa Rica’s Puntarenas

High tides flooded homes in Puntarenas on Thursday, October 29, with authorities warning that elevated tides could continue along Costa Rica’s Pacific coast through...

Costa Rica Banks Rank Second Only to Argentina for Dollar Risk, Moody’s Says

Costa Rica's banking system is among the most exposed in Latin America to a sudden squeeze on dollar funding, second only to Argentina, according...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel