Why Aren't There More 3.2% Beers Anyway?

I couldn't sleep last night. I started reading beer articles and I don't know why it took so long for me to consider this, but in my exhausted state it dawned on me that barely any craft breweries are participating in the 3.2%ABV ceiling-law that's currently in place for Colorado grocery and convenient stores. I'm not sure why that is. I mean, why is it that we don't see lots of craft breweries making these lower ABV beers so that they can reach a wider audience? It's certainly not because beer that is 3.2% is no good. In fact, there are plenty of examples of good beers with similar or lower alcohol by volume percentages. For example Rockyard's Rock Weisser, part of their Homebrewers Gone Wild series, is a tasty Berliner Weisse at 3%. Many Berliner Weisse beers sit at that percentage. I've had some great Mild Ales that sat around 3.2-3.5%. I've also had a BrewDog 1.1% hop bomb, which was actually kinda fun to drink if I'm being honest with myself. It's funny to think I could drink 16 of those and perhaps only get dizzy from too many hops. There's plenty more examples of course, including some Blonde Ales, Brown Ales, Bitters, and Pale Ales. Here's an article from Beer Today that reports a number of beers that were brewed specifically to be 2.8% or below and still be impressive.

Do breweries want to distribute to the local liquor shops only? If this 3.2% law remains on the shelf, doesn't it seem likely a brewery could make a good amount of money, or at least expand interest in craft beer, by offering quality beer that meets the regulations of what can be sold in grocery/convenient stores? Maybe the American public just won't accept low alcohol craft beer? That's too bad, if that's the case.

What are your thoughts? Maybe, I'll ask a few brewers these questions so we can get an idea of what they think. Also, I'd be very curious to hear from Breckenridge and Boulder, who I believe do indeed make lighter versions of certain beers in order to sell their beer in these stores. Seems like there should be a lot more available though.

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Speculation about Trader Joes in Colorado

This is all speculation, so we don't need to get into any arguments like we did last year...at least not yet. Rumor has it that Trader Joe's will be opening up shop in Boulder and that they will open their one allowed alcohol retail location next door to that location. There's also rumor of three Trader Joe's opening up in Denver. The article linked above suggests that perhaps Trader Joe's hasn't entered Colorado due to the nature of our liquor laws, which we are all familiar with from last year...that grocery and convenient stores cannot sell alcohol over 3.2% abv. This can't really be entirely true because Trader Joe's already has some locations that don't sell alcohol. Of course, the reason Trader Joe's never entered this state has never been outright stated, and this is all speculation but I just thought I'd throw it out there to you all. Who knows if we'll see a big push for the "3.2 bill" again this year or not, according to this Denver Post article, it's not really on the dockets this year and everyone is tired of fighting their side.

As an anecdote, I for one would like to have a Trader Joe's or two in Colorado Springs. In general I'm a consumer at local businesses and of local products, and I won't stop shopping at those if TJ moves in, but I think Trader Joe's plays a gigantic part in getting people to think more about what's in their food, which gets people to think a little more about where their food is coming from. So even though it may be competition for my favorite local grocery shops, I think TJ has an important role in changing people's attitudes about food and so I see the good in it.

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HB1284 Colorado Beer Bill Fails

Representative Larry Liston arguing in favor of the bill.

Today HB1284, the bill that would allow full strength beer to be sold in grocery and convenience stores, failed to be passed again. In fact, Destroyed might be a better word with the vote coming in at 46 to 17.  In a couple days you'll be able to watch an archive of the video from The Colorado Channel. We've gone over the bill a few times in the blog, you can read comments from both sides here as well as a response from Mike Bristol in the comment field here. Most people in the Colorado Craft Beer industry will be very enthusiastic about these results.

I was able to watch a little bit of the live feed before I had to go to work so I actually missed the final verdict. But there were a few interesting points that the side-in-favor made. One of those was a study by Henry Sobanet that concluded results that are very different from the Summit Economics study that is so often mentioned by dissenters. The other point was that in other states where all beer and alcohol are allowed in grocery stores, there is a higher per capta number of liquor stores. This was new news to me. On first glance I couldn't immediately find the exact study they were mentioning so I'm going to have to wait a few days and once the recording is uploaded I will go back and see which study they are talking about and try to find it online. I never did hear back from Summit Economics about how they acquired their data.

Also, Bristol Brewing did a great job giving a play-by-play on Twitter so that on my way to work I was able to keep up with what was happening. Thank you Bristol for doing that. For those of you who want to know exactly what happened, but don't have the patience to wait three days for the video to be uploaded on The Colorado Channel, I am going to post their updates below before they get sent into the never-ever-land of the Twittersphere:

Brief Update on Beer Bill HB1284

Just a quick update for you all who have been following this issue on the blog here. From the Denver Business Journal: "House Bill 1284, sponsored by state Reps. Larry Liston, R-Colorado Springs, and Crisanta Duran, D-Denver, passed the House Economic and Business Development Committee on a 7-6 vote. It moves now to the House floor, where another contentious discussion is expected."

Mike Bristol wrote a letter for the Colorado Springs Independent about the bill. The post outlines Bristol's position, and it also has a well-balanced and long response that is interesting to read. Also, the Beer Drinkers Guide to Colorado wrote a pretty informative post as well that you all might want to read.

Readers of Focus on the Beer, myself included, fall on both sides of the discussion. If you haven't seen it yet, we had some really great responses to our posts on the matter. Check them out here and here.

Save the Ales! at Bristol Brewing This Wednesday

In the midst of all this discussion on whether this beer bill is a good thing or a bad thing, Bristol sent out an email for a call to community action. I am in Arizona so I won't be there, but I sure wish I was, because I'd love to get Mike Bristol explanations on how the bill would potentially affect Bristol.

Here's the information. I think everyone who reads this blog should be there for information's sake:

Bristol Brewing Co. Hosts Save the Ales Event on March 23

Calling of all community partners to block bill (HB1284) that will harm Colorado craft beer

COLORADO SPRINGS, COLO. (March 21, 2011) – Imagine a world with no Community Ales. Bristol Brewing Co.’s Local 5 Ale, Smokebrush Porter, Venetucci Pumpkin Ale and Cheyenne Cañon Ale are at risk if HB1284 (Sale of Full Beer) passes.  HB1284 - the bill introduced last week allowing full-strength beer sales in chain stores - will gut the thriving Colorado craft beer industry that generates $12 billion and supports 67,000 jobs.  Craft breweries represent a collaborative community that benefits the local economy, in large part because – unlike other states – start-up breweries in Colorado have access to independent retailers and liquor store owners.  These businesses work together to stock and promote locally-made beer.  Loss of access to market will result in job loss, profits being sent out of state, and the endangerment of niche and specialty beers.

WHAT:                

Local businesses and organizations will gather to protect Bristol Brewing Co.’s Community Ales: Local 5 Ale, Smokebrush Porter, Venetucci Pumpkin Ale and Cheyenne Cañon Ale.  In the past two years alone, Bristol Brewing Co.’s community support amounted to more than $100,000 in cash and $200,000 in in-kind donations.  The Colorado Springs-based microbrewery will host a community-wide letter-signing event, asking Colorado Representatives to say “No to HB2184” in an effort to “Save the Ales.” 

WHEN: Wed., March 23 at 4:30 p.m.

WHERE: Bristol Brewing Co. - 1647 South Tejon Street, Colorado Springs, Colo. 80905

VISUALS:
- From business and community leaders to craft beer advocates will gather in the Tasting Room for a letter-signing event asking local legislators to say “no to HB1284.”
-  Visual representation of the community ales, for example, the Local 5 fire truck and Smokebrush’s toaster vehicle.

-  Interviews with Mike Bristol, owner of Bristol Brewing Co., and members of the Colorado Springs community.

More on Convenience Stores and Selling Full Strength Beers

A couple days ago we posted about the upcoming bill that would allow convenience and grocery stores to begin selling beers that are over 3.2% in alcohol in Colorado. We linked to the Summit Economics study that claims Colorado Liquor Stores would lose 50% of it's sales in the first year alone, and that within three years, 700 liquor stores will close. It also states that 5,500 jobs will be lost in the industry. View that pdf here. I'm emailing Summit Economics right now asking them a little about their data, and how they did their research. See, I'm skeptical of all this, and I've expressed my opinion on this blog a couple times. But then again I don't really know much about economics. Will liquor stores really go out of business because people can buy Fat Tire and Black Butte Porter at Safeway? I doubt it. I imagine liquor stores will suffer, and I imagine that some may go out of business, but not 700, but that shortly thereafter there will be a growth in interest in the microbrewed beer industry. Once people have access to more flavorful beer, they will seek out more examples of it. That's when the liquor stores will have the advantage. Here's a post from Open Market claiming that 'craft brewers have it all wrong.'

But, I'm also hesitant. I would hate for breweries to suffer because of this bill. Because I don't actually know what will happen I can't fully endorse one or the other. So, I'm going to post an email that Bristol Brewing sent to their email list. If you are inclined to think that breweries would be hurt, you should read through this email, and follow up by sending letters to the appropriate people.

KRCC, the Colorado College radio station just posted a brief recap on all that's been happening if you would like a quick 5 minute radio update. It's a short interview with Ed Sealover from the Denver Business Journal and Tim Hoover who writes about the issue for the Denver Post. Both believe the bill will hurt the industry, at least that's what it sounds like. There's also a brief mention about the funny little law that convenience stores exploited pertaining to bars not being allowed to sell beer under 4%, a bill that was swiftly killed by Hickenlooper (for sure this was a good thing!).

Okay, so here's the email that Bristol sent out over the weekend (BTW, I'm happy to post arguments and thoughts from each side of the story). Have a read:

Urgent: Help us Save The Ales!

Dear Friends, Remember last year when we asked you to imagine a world with no Beerocrats, no Community Ales, and the disappearance of many small Colorado craft brewers? Well, Colorado craft beers are under attack. Again. And we need your help. For the third time in as many years, legislation has been introduced in the State House that would gut our thriving industry. The bills would eliminate the 3.2 beer that is sold in grocery and convenience stores and allow convenience stores to carry full strength beer. If passed, this would open grocery stores up for the sale of full strength beer. At first glance, full strength beer in grocery stores sounds like a good thing, and that's what the big corporate lobbies behind these bills want you to think. The reality, though, is that these bills would be "convenient" for corporations' bottom lines, but not convenient for you, the consumer. An independent economic report released last year estimates that within five years, 10,000 jobs will be lost and 900 of the state's ~1600 liquor stores will close. Breweries will lose vital access to market, many will close, seasonal and specialty ales will disappear from shelves, and your favorite Bristol products probably won't be available at grocery stores. And in a tricky turn, this legislation just got introduced yesterday and will likely appear in its first committee next week, so time is of the essence. We'll be working on getting you more information as the situation develops, so please look at our website, check out our Facebook page, or join the conversation -- tweet with #SaveTheAles. Bottom line: this bill isn't about convenience. For the Colorado economy it's about lost jobs and profits being sent to out of state corporations. For brewers it means lost market share, layoffs and less flexibility in brewing your favorite beers. For you, it means you will pay more for a smaller selection of beer. Please help us. Call or write your Colorado State Representative, who you can find at votesmart.org (you can use this sample letter here).

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!

Required by Law to Drink Stronger Beer?

BeerTapTV pointed me towards an interesting article that was recently published in The Denver Post concerning new laws that just might affect your drinking habits when you go to the pub/bar in the future. You may be well aware of what is commonly called the 3.2 law where beer above 3.2% alcohol cannot be sold in food stores or corner stores. Well, also a law has been in place that prohibits drinking establishments to sell beer these 3.2% beers, although this  has never really been regulated. All that is about to change as "convenience store advocates and their allies in the legislature amended a bill last spring that now requires the state to enforce license restrictions to a T."

The corner store advocates are tired of being bullied into selling only the 3.2% beers and want to have more options available at their shops. Liquor store owners don't like this idea as