Limiting liquor licenses: the new bill proposed

(COLORADO SPRINGS) — In southern Colorado, some customers prefer to shop exclusively at locally owned liquor stores for their alcohol purchases, while others may opt for the convenience of big grocers, seeking a one-stop shopping experience.

“I’m so passionate because small retail is so important in Colorado,” said co-owner of Coaltrain Wine and Spirits, Jim Little. “I mean, it not only funds a lot of employees, but it also helps the small craft distillers, the small craft breweries. It does so much to encourage small businesses to develop in Colorado.”

Business this past year has looked different than before, as voters passed Proposition 125, allowing wine to be sold in grocery and convenience stores.

“Sales have certainly gone down,” Little said. “I mean, there’s no question after the Grand Compromise in 2016, we didn’t think the grocery stores were going to go for wine in grocery stores, but they decided to abandon the Grand Bill or the Grand Compromise and go after wine in grocery stores.”

House Bill 1373, currently under consideration, would limit liquor licenses at large grocery stores to only sell beer and wine, consequently removing the sale of hard liquor.

“This piece of legislation would pull the rug out from underneath all of those stores overnight, which is really concerning to us,” said the President of the Colorado Retail Council, Chris Howes. “In 2022, Colorado citizens voted to approve wine sales in grocery stores and at the time, we promised to provide customers with more convenience, more choices and lower prices and we have done all of that.”

The bill would also place restrictions on large retailers, prohibiting them from selling alcohol beverages with greater than 14% alcohol. Additionally, it would require grocery stores to have a designated space where beer and wine could be sold.

Supporters of this proposed bill, such as Little, believe it would contribute to a fairer market by preventing big retailers from selling hard alcohol on their shelves.

“We’ve already heard rumors,” Little said. “Next, they’re going to go to after a general election, where they would put liquor into every grocery store, every convenience store. I mean, basically there would be liquor in every store now that has beer and wine, and we know they’re going to go after that. So, we’re trying to prevent that by this House Bill 1373, by kind of interacting with the community and with our legislators to try and stop this from happening.”

One liquor store owner is hopeful House Bill 1373 could create a fairer market, after seeing sales dropped in the last year.
One liquor store owner is hopeful House Bill 1373 could create a fairer market, after seeing sales drop in the last year.

Downtown Fine Spirits and Wine also experienced a decrease in sales over the past year. However, Gregor Huesgen, the owner, shared that compared to the industry average, the decline was not as severe.

Huesgen described the liquor stores located close to grocery stores as “getting hit with bad numbers, because you see that used to be a prime, that used to be prime location next to them.”

When it comes to serving the community, Huesgen highlighted the wide variety of products available at the store and contrasted it with the alcohol shopping experience at grocery stores.

“We actually cater to customers,” Huesgen said. “Customer has a special wish, we will order for him. Good luck finding that one in a grocery store and good luck finding help with the wine selection.”

However, Howes stressed the importance of honoring the past decision made by voters and emphasized the value of a free market, allowing businesses to meet the needs of their customers.

“House Bill 1373 would automatically prohibit any future plans for our grocers to sell spirits,” Howes said. “We just think that it is not in line with where the people of Colorado want to go, which is modernization, more competition, more choice.”

Last week, the Business Affairs and Labor Committee approved House Bill 1373 in a 6-5 vote. The bill is scheduled to be heard by the Finance Committee on Thursday at 1:30 pm.

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