March 19, 2011

Beer and Politics: Should Colorado allow full strength beer to be sold in convenience stores?

This post written by Isaac.
Should Colorado allow full strength beer to be sold in convenience stores?

That is the question that seems to spring up in Colorado every year. This week Representative Larry Liston, a Republican from Colorado Springs, introduced a bill [this is a pdf] that would undo long-standing laws that prevent grocery and convenience stores from selling beer stronger than 3.2% alcohol. This bill was proposed a week after the Colorado Department of Revenue retracted a ruling made in 2010 that required the department to enforce rules that restricted bars and liquor stores from selling beer under 3.2% alcohol (the Berliner Weisse sales must have been getting out of hand!). If this new bill is passed, the changes could be implemented as early as July 1, 2012. You can read more of this battle over beer sales here.

I've heard the pros and cons from countless sources if this bill is passed including a plea from Eric himself, and here are a few of the arguments:

Pros:
  • Convenience of getting beer and food at the same place for food-beer pairings (I can vouch that this is handy having lived near a Heinen's in Ohio that would have a card next to most of their beers explaining the style and what food pairs well with the beer)
  • Introducing craft beer to a larger audience.
  • Decreasing carbon footprints
  • California already does this and they have great variety in beer
  • Bringing in new grocery stores that cater more with craft beer (i.e. Trader Joe's)
  • Small independent grocery stores, such as Mountain Mama's could carry organic and local beer for their customers. It doesn't have to be just large stores like Safeway
Cons:
  • According to one independent study (pdf), between 400-700 liquor stores in Colorado would close
  • Beer profits would leave Colorado to out-of-state corporate grocery headquarters
  • Decrease in selection of beer if independent boutique liquor stores (i.e. Coaltrain Wine and Spirits) were forced to close due to loss of sales.
  • Small microbreweries would have fewer places for distribution
I'm not writing this article to get on my soapbox and voice my opinion. I'm hoping this article with start some debate in the comment section to add to the pros and cons. I have a feeling this bill will be passed soon given the recent passing of allowing liquor stores to be open on Sundays. Let the debate commence!



7 comments:

  1. You are a Cleveland person, too! :)
    I don't have a very strong opinion, really. Previously,I would have said, "of course grocery stores should sell whatever they want." But I don't go to traditional chain stores much anymore. So, personally, it wouldn't have any effect on me, until.....

    Since I like new and unusual beers from small makers (which the big chain grocery stores do not tend to sell), I wouldn't be able to find what I want when the small specialty stores go out of business. So that would suck.

    Regardless, Coaltrain and Cheers would most likely survive.

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  2. I'm just not convinced hundreds of liquor stores will go out of business. People will still need to go there for wine and liquor. Safeway will carry only the largest distributed brands like Deschutes and New Belgium. The liquor store will still have the specialty stuff and the local stuff. If anything, it will help them diversify and get creative. Maybe some of the lamest liquor stores will suffer the most, and maybe they should, but generally my thought is that more people will be introduced to more options in beer, thereby sparking an interest in it, and then it will cause them to seek it out when they go to the liquor store.

    Isaac, do you have a link to the independent study that suggests that hundreds of small stores will go under? I'd love to see an actual study on it. I'm no economist so I base my thoughts purely on my experience in Oregon and California.

    More thoughts on this soon, but I'm out the door now...

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  3. I like things the way they are right now. I'm tired of giant corporate companies selling sub par produce and merchandise. I know its convenient to do a one stop shop, but come on, enough already. The big super stores have already cut out the small local bakeries and florists. I'd enjoy the taste of a home made cake more than a lame sheet cake at any supermarket. I'm not sure what type of impact this bill will have on the local beer scene (if any) I'd rather just see it left alone. If it does end up putting any of my favorite breweries in jeopardy, then I'd just have to continue brewing my own! :)

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  4. I'm with Eric on this: I don't believe that liquor stores will close. The small ones without any selection but Bud Light and Jack Daniels are the most at-risk, but they'll survive because with those liquor stores, the primary value for customers is proximity. If I'm on my way to a party and I need to pick up some beer or vodka, I'll stop in because it's on the way. I don't want to go into Safeway. The Cheers and Coaltrains will survive because they'll always have a much larger and better selection. Having a distinction in the market between 3.2 beer and "real" beer is archaic -- it really gives our community a bad image.

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  5. @Eric: I don't have the study that keeps getting referenced. Maybe Laura has it.

    Here's another interesting article on the issue I found today. They argue having beer in grocery stores will open up more shelf spaces in liquor stores for craft beer.

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  6. Thanks Isaac, it's good to see that I'm not the only beer lover who thinks the bill would actually benefit the breweries. I just made a new post and I included that link in it.

    Also, I found the study so I linked to it above.

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  7. I posted this on the FB wall, but this is probably a more relevant space to comment: I'm from a small town in GA. In fact, I'm flying home tomorrow to visit for 5 days. I can't tell you how happy I am that Kroger grocery carries New Belgium and Oskar Blues.. along with some fine GA SweetWater brews, this means I have options. Kroger carries these because I requested them, and explained how well they will sell.. they sold very well, and they'll be there on the shelf for my purchase tomorrow night. I know some businesses may suffer, and I'm empathetic to this concern. They have a right to petition their representatives. However, as a consumer I'm not going to limit choice based on fear. Craft beer brewers are smart, thoughtful people. They will prosper and continue to convert the big-name beer drinkers because they offer quality and variety. Groceries want a piece of that profit, and by request of consumers, they'll respond. Believe me, small southern towns aren't known for change, so if Dublin, GA can do it, so can CO.

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