Proposed Colorado liquor law changes may cost jobs

January 28, 2:17 PMNorthern Colorado Beer Examiner'Chipper' Dave Butler

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Two Colorado lawmakers, Buffie and Jennifer want to turn your supermarket into a liquor store. But is that going to cost the Colorado economy in the process? Liquor store owners and Colorado craft breweries think so.

There is a hot debate going on this month in the Colorado capitol on whether or not to allow Colorado supermarkets and convenience stores the right to sell full strength beer.  Proponants of the bill HB 1192 claim that the law passed in 2008 that allowed Sunday liquor sales for the first time since Prohibition hurt beer sales in grocery stores and convenience stores who are only allowed to sell weaker 3.2 beer.  By allowing liquor stores to be open on Sundays, very few people now want to buy lower strength beer from their stores.  So now they are pushing to pass a new law that would give them the right to compete with liquor stores and sell stronger beer.  A similar bill was defeated in Colorado last year but is raising it's head once again.

Liquor stores and breweries unhappy

But hold on. Not everyone is happy about this proposed law change.  Liquor store owners and Colorado craft breweries are worried that allowing big chain stores like King Soopers, Safeway and 7-Eleven, who are based out of state, would shun local brews and fill their shelves with cheaper macro beers and other out-of-state beers and drive away business from local craft breweries.  Liquor stores would likely face stiff competition from the major food and convenience chains and could fold and go out of business.

Liquor store owners are still unsure about how the Sunday liquor law is panning out.  While initial sales rose in July and August after the new law was passed last year, sales of all types of liquor is showing signs of slowing down. Most sales have simply spread out more over 7 days and haven't driven up profits.  The bad economy has something to do with this, but liquor store owners believe that the novelty of selling on Sunday has also worn off now.  Sales of beer, which make up roughly 50% of liquor store sales could be severely impacted if supermarkets and corner gas stations could start selling the same items they can.

Grocery stores and convenience marts claim that sales of beer have dropped off significantly since July 1st as now there is no longer a need to buy the lower strength 3.2 beer.   They claim liquor stores have gotten a monopoly on full strength beer sales now. That old 3.2 beer has now become as obsolete as the ban on Sunday liquor sales and fewer breweries are now making that product.

What's really at stake here? 

How about thousands of Colorado jobs.  Passing this bill could put a significant percentage of Mom and Pop liquor stores out of business along with their employees.  Profits from beer sales would head out of state into corporate pockets instead of in the hands of local residents.  Craft beer breweries in this state, rough 110 of them, could see significant losses in sales of their beer as cheaper out of state beers would likely get a stronghold on supermarket shelves.  Many craft breweries could go out of business, further hurting the Colorado economy.  Colorado beer tourism, which draws thousands of travelers each year, would also suffer should breweries go out of business.

Some opponents of the bill go on to say that passing this new law would make full strength beer easier to obtain by teenagers  from supermarkets where many of the cashiers are under the age of 21.  Passing this law may even force some 18-20 year old supermarket employees to lose their jobs as stores would be forced to replace them with older employees who could legally sell full strength beer to customers.  Most supermarket employees have not been fully trained on methods of preventing underage drinkers from obtaining alcohol like liquor store employees have. 

Also, if supermarkets take away shelf space for more beer, what are we going to have to see less of on our store shelves?  You can bet if this law passes that a lot more supermarket shelf space will be dedicated to beer and be placed right in front the eyes of all of the underage children who regularly visit there.

Just say No

So before Colorado state lawmakers go messing with the state liquor laws again, let's think ahead a bit more this time OK?  Let's consider the entire economic impact of jobs in this state and protect our already fragile economy.   Don't just think of how government can build tax revenues from more liquor sales.  That won't happen, liquor sales won't grow just because shelf space does.  All that will really do is make for more beer sitting around getting stale. 

Do we want out-of-state corporations getting a bigger share of the profits from Colorado beer sales or do we want to keep our revenue, liquor stores, breweries and jobs here locally?   I say VOTE NO on HB 1192, Buffie and Jennifer, to supermarket and convenience store full strength beer sales.   I don't want to see another mega conglomerate taking away another local small store industry's livelihood.  Keep liquor sales where it belongs, in liquor stores.

(Buffie = Rep. Buffie McFadyen of Pueblo, Jennifer = Sen. Jennifer Veiga of Denver)