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A political bar fight
Liquor stores don't want groceries to sell full-strength beer
Herald Staff Writer
Photo by JERRY McBRIDE/Herald
Jeanne McEvoy, executive director of the Colorado Licensed Beverage Association, speaks Thursday to a group of store owners, distributors and brewers in the tasting area at Ska Brewing in Bodo Industrial Park.
Although a bill that would have allowed the stores to sell beer containing more than 3.2 percent alcohol died in the Colorado Legislature in March, its backers and opponents alike fully expect to see the idea make the ballot in 2010.
This business' life is over if this passes, so do we have any alternative but to fight it?
- Stan Crapo, owner, Star Liquors
If you think you've got loyal customers, think again. They don't care if the whole town goes away if they can buy it for a nickel less.
- Jeanne McEvoy, executive director, Colorado Licensed Beverage Association
Liquor store owners fear that allowing grocery stores to sell full-strength beer would drive them out of business. And small brewers worry that their beer never will reach the store shelves, especially those that are regional or national chains.
"I might be able to get (True) Blonde or Pinstripe on the shelves at City Market in Durango, but in Denver? No," said Dave Thibodeau, co-owner of Ska Brewing in Bodo Industrial Park, referring to two of the brewery's products.
Thibodeau also is a member of the Colorado Brewers' Guild and said microbrewers statewide opposed the bill and any future ballot initiative.
About 20 store owners, distributors and brewers gathered Thursday at the brewery for a strategy session with Jeanne McEvoy, executive director of the Colorado Licensed Beverage Association. The association lobbies on behalf of Colorado's independently owned liquor stores.
McEvoy is on a statewide tour to rally support against the reintroduction next year of House Bill 1192 or a possible voter ballot initiative to allow grocery stores to sell full-strength beer. All agree that if an election were held today, the measure would pass by as much as 80 percent.
"If you think you've got loyal customers, think again. They don't care if the whole town goes away if they can buy it for a nickel less," McEvoy said.
McEvoy believes that, if asked, most people would be in favor of being able to buy their full-strength beer in the grocery store. It is one of the only pieces of common ground between the two sides, because supporters of the proposal are the ones who want to see the ballot question.
"As far as we're concerned, if the grocery stores want to go to the ballot, we'll be with them on that," said Mark Larson, a former state representative from Cortez who now lives in Denver and serves as executive director of the Colorado-Wyoming Petroleum Marketers Association. He represents the interests of independent and franchised convenience store and gas station owners.
"From our side, they can do all the educating they want, but they're going to lose," Larson said.
Larson said the liquor store industry forced the issue last year when the Legislature made it legal for liquor stores to be open Sundays, overturning a law that had stood since 1933. In the ensuing years until last year, only beer containing 3.2 percent alcohol by volume could legally be sold Sundays; grocery and convenience stores took a big hit when the law changed.
"When they changed the Sunday sales law, they forgot to change the other 1933 law and they gave away $64 million in sales. Since the law changed, beer sales in liquor stores are up 23 percent, and where'd that come from? It came from us, and we're not happy about it," Larson said.
Liquor store owners also point to 1933, but for a different reason. Since then, it has been illegal to own more than one liquor license in Colorado, and that has limited a store owner's ability to grow and increase his buying power. Store owners claim that puts them at a decided price disadvantage versus the larger chains if they are selling the same product.
"For 75 years we've had no growth; we can't expand or franchise, and now you want to take away our bread and butter and give it to someone else," McEvoy said.
She said data backs up the claim. A study conducted by the Colorado Springs research firm Summit Economics found that if grocery stores are allowed to sell full-strength beer, an estimated 50 percent of the state's 1,672 independent liquor stores could close within five years.
Star Liquors is one of 13 Durango liquor stores, and owner Stan Crapo said that data limits the options for him and his fellow proprietors.
"This business' life is over if this passes, so do we have any alternative but to fight it?" Crapo said.
ted@durangoherald.com
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