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A question of values

In support of independent liquor stores

The discussion has begun in earnest about allowing wine, full-strength beer and perhaps liquor in Colorado grocery and convenience stores. The state Legislature has decided numerous times this model is not appropriate for Colorado, but now we can expect an initiative on the November ballot. Proponents talk about lower prices and convenience. Let’s take a closer look.

If you tend to be in favor of allowing sales of these products in grocery stores, the big question is: What do you value?

Most people value good service and product knowledge from salespeople. If you value these, you should vote to continue the current system. Few could argue that supermarket or convenience store employees will be able to discuss varietal, vintage and other qualities in wine as well as wine shop employees, many of whom have spent time and money to further their wine education.

Most people value good product selection. One need only to go to the Safeway store in Aztec and look at the selection of wine, beer and liquor, which generally consists of broad-market brands available from a handful of large suppliers. That’s about it. Supermarket shelf and cooler space is valuable and limited. That space will be dominated by the brands of the big suppliers in the industry. Colorado store owners make their own decisions about what is on their shelves. Northern New Mexico residents make special trips to shop for wine in Durango, and customers from Albuquerque, Phoenix and Los Angeles regularly mention the varied selection available here.

Most people value low prices. Again, look at the selection in the Aztec Safeway. You will generally find many of the broad-market items that some Durango stores sell, but at slightly higher prices. Because New Mexico largely lacks individually owned stores, the primary competition comes from other supermarkets, where prices are set at corporate offices in Albuquerque and Santa Fe. They are not subject to the competitive forces present in a market like Durango.

Most people value keeping money local. Studies show that local retailers return 52 percent of their revenue directly to Colorado’s economy, while national chain stores return only 14 percent of that revenue. Your vote will affect where this money goes.

If the ballot measure passes, cash and profit will go to the primary backers of the measure – Safeway (headquartered in Oakland, California), Target (Minneapolis), Wal-Mart (Bentonville, Arkansas) and Kroger (parent company of City Market, based in Cinncinati). Doesn’t enough of your hard-earned money already leave Colorado?

Most people value keeping jobs local. There is no doubt that if wine, strong beer and liquor are available in grocery and convenience stores, many locally owned mom-and-pop liquor stores will cease to exist and their jobs will go away. Many jobs with craft brewers and craft distilleries will likely disappear as well because their products will not be on the shelves of chain stores.

Most people value convenience. Fair enough. The fact is, most Colorado grocery stores already have a liquor store nearby, if not right next door.

Most people value keeping beverage alcohol out of the hands of minors. An existing licensee has a great incentive to abide by the law; when a violation occurs, suspensions and fines cost them big time. It’s difficult to imagine a major grocery chain closing for several days, as liquor store violators must if they break the law.

When a Colorado entrepreneur obtains a liquor license, that individual makes an agreement with the state to sell only beer, wine, liquor and accessories – no T-shirts, candy, chocolate or chips. On the other hand, other types of businesses can sell ice cream bars, popcorn or anything else they choose, beverage alcohol excluded. In a nutshell, the agreement is that liquor stores don’t sell food and food stores don’t sell liquor.

Also, an individual entity in Colorado currently is prohibited from having more than one liquor license, in effect disallowing chain liquor stores. The big store and chain interests want to be able to hold an unlimited number of liquor licenses, while traditional Colorado store owners would still be subject to the same restrictions as today. Allowing this without fair compensation to existing licensees is another, larger subject altogether.

Some people talk about how well the system works in other states, but that is an apples-to-oranges comparison. Those markets evolved differently than the Colorado market, which has existed in its current version for more than 80 years – since Prohibition ended. Those who favor the grocery store-convenience store model seem to be largely from large market areas like Phoenix or Los Angeles. If the ballot initiative passes, the consumer may eventually find reasonable selection and expert salespeople in Front Range communities, but in small markets like Southwest Colorado, the consumer will be limited to selections much like in the Safeway in Aztec.

Have a conversation with people who know their products. Keep the money and jobs local. Enjoy superior selection. Decide what you value. The truth is, as the system exists, superior product selection and better pricing benefit customers – especially those in less-populous parts of the state. Check it out south of the state line. You’ll see numbers that don’t lie.

Colorado’s system isn’t broken. It’s just different.

Eric Allen is co-owner of The Wine Merchant in Durango. Reach him at winemerchant@mydurango.net. And for more information, see www.keeplocal.com.



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