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 ‘sold itself’ to Washington for visa power, says Óscar Arias

Former President and Nobel Peace laureate Óscar Arias has accused Costa Rica of surrendering its foreign-policy independence to the United States, telling a San...

Panama Bill Would Require Influencers to Disclose Paid Posts

Panama’s National Assembly is considering a bill that would require social media influencers and content creators to clearly identify when their posts are paid...

Naomi Osaka is winning again — here’s why the next month matters

Naomi Osaka arrived at Wimbledon this year with modest expectations on grass and left it as one of the most dangerous floating names heading...

Wildfire Smoke From Canada Casts Shadow Over World Cup Final

Smoke from hundreds of Canadian wildfires has added an unexpected health and weather concern to Sunday’s World Cup final between Argentina and Spain, although...

Costa Rica Investigates Development Inside Wildlife Corridor

Costa Rica’s Comptroller General has ordered immediate inspections of three properties in southern Costa Rica after satellite images revealed possible forest clearing, earthworks, new...

Windy Start to the Week in Costa Rica With Heavier Rain Coming Tuesday

If you're planning your week around the weather, it's going to be windy and humid today but the real rain shows up Tuesday, and...

Carlos Alcaraz Return Leads Latin Charge at 2026 Cincinnati Open

Carlos Alcaraz will return to competition at the Cincinnati Open, where the defending champion will lead a powerful field that includes 10 former tournament...

Costa Rica Returns Drug Police to Airports and Border Posts

Costa Rica will put its Drug Control Police back inside the airports and border crossings, reversing a 2023 decision that pulled the specialized unit...

San José Official Resigns After Nightlife Rules Are Halted

A senior San José municipal official who helped develop controversial new rules for bars, restaurants and live entertainment has resigned, days after the city...
Avatar
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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