DENVER – State lawmakers hope they can settle a decades-long battle over grocery store beer sales with a truce.
A large coalition of support has grown for a piece of legislation that would gradually allow full-strength beer, wine and liquor sales in supermarkets. But the measure faces an uphill journey.
The effort comes as a compromise to avoid competing ballot initiatives this fall. Efforts run the gamut, including just allowing beer and wine sales in supermarkets – which has gained the most momentum – to also including liquor.
“I can’t believe what you brought here,” said Sen. Chris Holbert, R-Parker, addressing his colleague, Sen. Pat Steadman, D-Denver, who has led an impressive stakeholder process.
Once an issue that divided many factions – including craft brewers, distillers, liquor store owners, distributors and grocery stores – support for the measure now appears to outweigh opposition.
Some smaller liquor stores, such as the Korean Liquor Retailers Association and the Ethiopian-Eritrean Liquor Association, have expressed support, as have several craft brewers, the Distilled Spirits Council and the Wine and Spirits Wholesalers of Colorado.
Disagreements do, however, exist within grocery store and craft beer associations, so those industry groups have been hesitant to offer a unified voice.
And Your Choice Colorado, which is pushing the beer-wine ballot initiative, said Friday that it is not ready to comment on whether it would pull its initiative to make way for the legislation.
Meanwhile, Keep Colorado Local, a group of liquor store owners and craft brewers, say they are forging ahead with opposition to the ballot initiative, having invested $3 million in media buys to fight the proposal.
“Until the ink is dry on a compromise, we’re continuing to prepare to defeat the grocery store initiatives in November,” said Jennie Peek-Dunstone, spokeswoman for Keep Colorado Local. “Our greatest concern is really protecting the local family-owned craft breweries and liquor stores.”
Steadman cautioned against jumping too far ahead.
The bill passed its first test Friday, moving through the Senate Business, Labor and Technology Committee and the Senate Finance Committee before being approved on a voice vote by the Senate – with a final vote to come Monday before it moves to the House for consideration.
Mike Rich, owner of Wagon Wheel Liquors in Durango, said he remains skeptical.
“We’ve been playing by the law for decades, I don’t know why we should have to give up. We haven’t asked for anything over the years,” Rich said.
Applejack Wine and Spirits, a larger liquor store in Wheat Ridge, also fears the measure, and has been leading much of the opposition.
“I just want a more level playing field,” said Jim Shpall, co-owner of Applejack. “I am not here to hurt Colorado independent stores. I simply want to be able to compete with those big-box stores.”
Perhaps the most critical component of the compromise is that full-strength alcohol sales would be phased in over 20 years, with grocery stores being allowed to purchase only a handful of licenses until 2027. After that, grocery stores would be allowed to obtain unlimited licenses.
Also important to the compromise is a buffer zone provision, in which the bill draws a radius of 1,500 feet around existing liquor stores and requires grocery stores to buy out liquor stores to obtain a license within that zone.
“This is a compromise that will work better for Colorado businesses,” Steadman said.
“We have legislated these businesses to be small and vulnerable, and there is the possibility that if voters were to approve ballot initiatives, they would suddenly become vulnerable to the competition.”
pmarcus@durangoherald.com
