Denver residents would overwhelmingly vote in favor of allowing grocery stores and supermarkets to sell full-strength alcohol, according to a Denver Daily News survey of more than 25 people throughout the Denver area.
A House committee killed House Bill 1192 — which would have allowed grocery stores and supermarkets to sell full-strength beer — on Wednesday. After the legislation’s defeat, the bill’s sponsor, Rep. Buffie McFadyen, D-Pueblo West, brought up the idea of taking the issue to the voters on the November 2010 ballot.
Although small liquor store owners and local craft brewers worry that the bill’s passage could put them out of business, almost every person interviewed at Denver locations — including Argonaut Liquors, Whole Foods Grocer, Target and Heidi’s Brooklyn Deli — said they would vote in favor of allowing grocery stores to sell full-strength beer.
“Competition is competition,” said John G., who wouldn’t disclose his last name. “If liquor stores can’t compete with the big bucks stores, then that’s just the nature of capitalism.”
Ari Armstrong, publisher of FreeColorado.com, is a vocal advocate of getting a version of HB 1192 on the Nov. 2010 ballot. The Web site publisher staged an event at the Capitol on Friday where he smashed bottles in protest of the grocery limits, arguing that not allowing grocery stores to sell full strength beer is “using the force of the government to harm competitors and favor certain businesses.”
“Protectionism is wrong,” he said. “What we want instead of protectionism is a free market, where merchants and customers can come together voluntarily of their own choice and associate in the way that they deem best. What we need, in a word, is liberty.”
Strong opposition
When HB 1192 was in the legislature last week, the lobby against it was as mighty as Denver-based Great Divide’s Hibernation strong ale.
Craft brewers claimed McFadyen’s measure would have forced them to drop to their knees and plead with convenience store and supermarket corporations to stock their product; and the Colorado Licensed Beverage Association and others, including Mothers Against Drunk Driving, said teen convenience store clerks would possibly cave to peer pressure and start sneaking full-strength beer out to their friends.
“I’m not so convinced that convenience store owners, or convenience store managers have the same motives, or the same interests involved in protecting our community from alcohol sales to people under 21,” said Kory Nelson, a Denver city attorney in the prosecution section who says he has worked on many alcohol-related cases. “I’m not convinced that those employees are well-trained, well-managed, well-supervised, or motivated to really make sure that the law is enforced.”
Less variety?
Brian Dunn, president of Great Divide Brewing Co., said consumers would likely have seen less variety of beer throughout Colorado as a result of House Bill 1192. He said large supermarket corporations would not stock as much variety as liquor retailers do, but that retailers would go out of business, leaving less variety on the shelves.
“One of the reasons that the beer is so good here is because the independently owned liquor stores are willing to carry a very wide variety of beer that is produced by the craft brewers,” said Dunn. “That variety will be seriously hindered if this bill passes.”
For the 1,650 independent liquor stores across the state, full-strength beer in supermarkets and convenience stores would have meant a 50-percent drop in full-strength beer sales in the first year, followed by a 70-percent drop within three to five years, according to the Colorado Licensed Beverage Association.
As many as 40 percent, or 700 stores, may have closed as a result, added the industry trade association. In the end, there could have been 5,550 fewer jobs in the industry, resulting in a loss of $120 million annually in employee and proprietor earnings.
Not everyone is as convinced that allowing grocery stores to sell full-strength beer would have such a negative effect.
“It’s not going to really effect anything,” said Denver resident Howard Simms. “I believe it’s just the liquor stores trying to keep their little monopoly going.”
