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

Costa Rica President Explores El Salvador’s CECOT Prison During Official Visit

President Rodrigo Chaves completed a two-day trip to El Salvador on Friday by walking through the Terrorism Confinement Center (CECOT), the region's largest prison...

Coming Home to Costa Rica on a Midnight Flight

My flight was scheduled for a late evening arrival. I prefer flying into Costa Rica in the daytime hours. From a window seat I...

Costa Rica Shifts Toward Regenerative Tourism Alongside Other Nations

Costa Rica has long stood out for its commitment to protecting natural areas through tourism. Now, our country joins a growing number of nations...

Cold Front Hits Costa Rica as IMN Warns of 80 km/h Winds and Rain

A fresh cold front pushes into Costa Rica today, bringing stronger winds and scattered rain across several regions. The National Meteorological Institute (IMN)...

Costa Rica Has the World’s Second-Worst Traffic

Drivers here in Costa Rica spend hours stuck in gridlock each day, and new figures confirm the problem ranks among the most severe worldwide....

Costa Rican Surfer Carden Jagger Advances at ISA World Junior Championships

Carden Jagger, a 14-year-old surfer from Playa Grande in Guanacaste, has moved forward to the third round in the under-16 division at the 2025...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica