Click on a question below to read the answer.- Why does this proposal protect liquor stores within 1,000 feet of a neighborhood grocery store?
- Will liquor stores further than 1,000 feet of a neighborhood grocery store see any benefit from this proposal?
- If the liquor store within 1,000 feet opts not to see its license, can the grocery store approach a different liquor store owner?
- What if there are two liquor stores within 1,000 feet of the neighborhood grocery store?
- What protections are included in the proposal to avoid the sale of alcohol to minors?
- How do Colorado's liquor laws compare to other states?
- What will be the impact of this proposal on Colorado's economy?
- Why are the transfer and application fees for local and state governments set at $3,000 a piece?
- If House Bill 1279 passes, will grocery stores carry local craft brews?
- Will grocery stores sell alcohol 24 hours a day?
- Why is this proposal limited to grocery stores with a drugstore license where 51% of sales com from food?
- If House Bill 1279 passes, can chain grocery stores buy liquor in bulk for all of their locations in the state?
- Why does House Bill 1279 restrict grocery stores that carry alcohol from doing tastings?
- Does Fair Markets Colorado have a position on House Bill 1186?
- If this proposal fails this year, will the coalition support the ballot initiative to allow grocery stores to carry alcoholic beverages?
- If House Bill 1279 passes, how quickly will grocery stores in Colorado be carrying beer, wine and spirits?
1. Why does this proposal protect liquor stores within 1,000 feet of a neighborhood grocery store?
The legislation includes restrictions on the transfers of liquor licenses to prevent a neighborhood grocery store from competing with an existing nearby liquor store. If there is a liquor store within 1,000 feet of a neighborhood grocery store, that grocery store may only negotiate to purchase the license and business of that liquor store. If that liquor store opts not to sell its license, then the grocery store is prohibited from negotiating with any other liquor store beyond that 1,000 foot boundary. This restriction is in place in order to protect the “on the property” liquor store from having to compete with the added convenience of a grocery store that can sell beer, wine and spirits. If there is no liquor store within 1,000 feet, the grocery store may negotiate with any liquor store within the same municipality. [back to top]
2. Will liquor stores further than 1,000 feet of a neighborhood grocery store see any benefit from this proposal?
Yes. Grocery stores that are not within 1,000 feet of a liquor store are able to negotiate for the purchase of a liquor license from any liquor store within the same licensing jurisdiction, which usually coincides with the municipal boundaries.
Additionally, existing grocery stores are likely to only designate a few aisles to beer, wine and spirits, so liquor stores across the state will still have a competitive advantage in terms of the broad selection they are able to offer. [back to top]
3. If the liquor store within 1,000 feet opts not to see its license, can the grocery store approach a different liquor store owner?
No. House Bill 1279 is designed to protect the “on the property” liquor stores that are located in the same shopping area so that they don’t have to compete with a grocery store in the same parking lot. If the liquor store within 1,000 feet opts not to sell its license, then both the liquor store and the grocery store will continue to operate under the status quo.[back to top]
4. What if there are two liquor stores within 1,000 feet of the neighborhood grocery store?
That grocery store would be unable to buy either business and would not be able to sell alcohol. [back to top]
5. What protections are included in the proposal to avoid the sale of alcohol to minors?
House Bill 1279 simply allows some liquor stores to sell their business and license to a neighborhood grocery store, and that grocery store would then be subject to the same liquor laws as any other liquor licensed drugstore. Because they currently sell 3.2 beer to customers over the age of 21, most grocery stores have significant security protocols already in place. Some of these include numerous in-store video cameras, security guards and police officers, all of which would help prevent the sale of alcohol to minors. [back to top]
6. How do Colorado's liquor laws compare to other states?
Colorado’s antiquated liquor laws date back to the days of prohibition and are more outdated than 80 percent of the country. Forty other states allow grocery stores to sell full-strength beer, 37 states have grocery stores that carry beer and wine, and 18 states permit grocery stores to sell beer, wine and spirits. Colorado’s neighbors to the north and south – Wyoming and New Mexico – have laws similar to what is being proposed in House Bill 1279. And grocery stores there are not dominating the market. [back to top]
7. What will be the impact of this proposal on Colorado's economy?
Grocery stores estimate that they will have to hire 3-5 new employees for each store that purchases a liquor license. Those new jobs will be unionized and have benefits including health insurance. Additionally, the transfer of liquor licenses will also result in real estate transactions when a liquor store’s business is sold, as well as the collection by the state and local governments of application and transfer fees. [back to top]
8. Why are the transfer and application fees for local and state governments set at $3,000 a piece?
The drafters of House Bill 1279 met with representatives from the state’s Liquor Enforcement Division. They felt that the $3,000 fees for state and local governments would be a sufficient and reasonable amount to cover the costs of reviewing, processing and enforcing the transfer of a liquor license. [back to top]
9. If House Bill 1279 passes, will grocery stores carry local craft brews?
Yes. In the many locations where grocery stores are able to sell full-strength alcoholic beverages, they carry dozens of brands of local craft brews. Safeway’s store in Littleton, CO that sells beer, wine and spirits under current law permitting one store in a chain to do so is a good model of what Colorado grocery stores could look like if House Bill 1279 were to pass. That store carries more than 30 Colorado craft brews and 18 Colorado wines, responding to the needs of customers.
Currently, most Colorado grocery stores are only able to sell beer that contains 3.2% alcohol by weight, which most local craft breweries do not offer. So this proposal would allow grocery stores to carry the local beers that their customers want, and it would allow Colorado craft brewers and local wineries to expand their product lines into grocery stores without affecting their access to liquor stores. [back to top]
10. Will grocery stores sell alcohol 24 hours a day?
No. Under Colorado state law, grocery stores' liquor departments will only be allowed to operate during the same hours as any other liquor store. Legal sales hours are 8 a.m. to midnight, Monday through Sunday, and Christmas day sales are prohibited. [back to top]
11. Why is this proposal limited to grocery stores with a drugstore license where 51% of sales com from food?
House Bill 1279 is limited to drugstore grocers, which are defined as stores that hold a drugstore license and where at least 51% of revenue comes from food sales. This restriction is in place because grocery stores have a proven track record of safely selling alcoholic beverages. And any drugstore in Colorado requires a specific pharmaceutical license, application and registration, as well as oversight by the state. Turning a drugstore license into a liquor license will be a relatively easy process, minimizing administrative and legal needs. Other retailers have said that they are not interested in selling alcohol. Additionally, Colorado legislators in the past have rejected broader proposals, so House Bill 1279 is narrower in scope in order to address those concerns. [back to top]
12. If House Bill 1279 passes, can chain grocery stores buy liquor in bulk for all of their locations in the state?
No. Under House Bill 1279, grocery stores would be subject to the same restrictions in federal and state law as any other liquor store. Each retail liquor license in Colorado is treated as a stand-alone license for alcohol beverage product ordering and delivery purposes. As such, all deliveries of alcohol beverage products can only be made to the retailers licensed premises. Deliveries to a retailer’s centralized warehouse for redistribution are prohibited under Colorado law. Therefore a grocery chain couldn’t order a large volume of alcohol beverage products at a volume discount price, have them delivered to its centralized warehouse and then redeliver the products to the stores in its chain.
Under Colorado law, wholesalers price their product sales based on volume discounts that are based on deliveries to a specific retail licensed location. An alcohol beverage wholesaler or manufacturer is prohibited from giving a retailer any rebates or kickbacks based on the volume of alcohol beverage products sold during a time period. [back to top]
13. Why does House Bill 1279 restrict grocery stores that carry alcohol from doing tastings?
If this bill passes, grocery stores will still only be a small part of the liquor store market in Colorado. The bill sponsors and drafters felt that it would be best to leave alcohol tastings to the liquor stores that specialize in that type of activity. Representatives from the state’s Liquor Enforcement Division agreed. [back to top]
14. Does Fair Markets Colorado have a position on House Bill 1186?
No. We are focused exclusively on House Bill 1279, which we believe is a fair and common-sense proposal. [back to top]
15. If this proposal fails this year, will the coalition support the ballot initiative to allow grocery stores to carry alcoholic beverages?
The Fair Markets Colorado coalition convened solely to focus on House Bill 1279. We believe that it is the best and fairest proposal, and we are optimistic that the Colorado State Legislature will agree. But we also think that this is not an issue that is going away. Grocery store managers repeatedly hear from their customers that they want the convenience of being able to buy beer, wine and spirits in the same place where they buy bread and milk. [back to top]
16. If House Bill 1279 passes, how quickly will grocery stores in Colorado be carrying beer, wine and spirits?
The bill would take effect on January 1, 2011, but there certainly will not be beer and wine in grocery stores overnight. This proposal is a phased-in approach because it may take considerable time and capital to negotiate the sale of the liquor store businesses. And many grocery stores will not carry beer, wine and spirits if the liquor store within 1,000 feet opts not to sell its license. [back to top]
