Bill would expand beer, wine sale sites

Liquor stores fear competition from grocery giants

By Roger Fillion, Rocky Mountain News (Contact)

Friday, February 8, 2008

Grocery stores, convenience stores and big retailers could sell full-strength beer and wine under a bill introduced Thursday in the state legislature.

Sen. Brandon Shaffer, D-Longmont, the sponsor of SB 149, said he made several changes to an initial draft that would have allowed only large grocers such as Safeway and King Soopers to sell regular beer and wine.

The changes also are aimed at overcoming objections from liquor store owners who fear they would be forced out of business.

Liquor store owners, however, signaled their continued opposition. They've thrown their support behind a separate bill that would permit liquor stores to open on Sunday.

SB 149, co-sponsored by Rep. Jack Pommer, D-Boulder, would:

* Permit grocers and convenience stores to sell regular beer and wine six days a week. Big retailers that operate grocery departments, such as Wal-Mart and Target, could do the same.

* Allow liquor stores to sell nonperishable foods such as chips, pretzels and dips.

* Allow liquor store owners to own up to three liquor stores, instead of one.

State law has barred grocers from selling regular beer and wine since Prohibition ended in 1933. Currently, they can sell only beer containing 3.2 percent alcohol. Full-strength beer contains 6 percent alcohol.

"This has been one of the most heavily lobbied bills down at the Capitol," Shaffer said.

He said he has met with individual liquor store owners and others such as craft brewers, while liquor store lobbyists have said no to a deal.

"There has been no interest on their part to negotiate with me," Shaffer said.

Draft language of the legislation had limited wine and beer sales to grocers that have a pharmacy and get at least 51 percent of their revenue from food sales.

Opponents charged that such restrictions would have barred big retailers, rural grocers and convenience stores from the sales.

The draft legislation also didn't contain provisions to permit liquor stores to sell food and liquor store owners to own more than one store.

But Scott Chase, spokesman for two dozen large liquor stores, said: "This bill has gone from bad to dangerous."

Citing underage-drinking worries, he added: "Colorado does not want or need 2,000 gas stations and grocery stores selling alcohol."

fillionr@RockyMountainNews.com or 303-954-2467

New provisions in SB 149

* Grocers and retailers could devote up to 5 percent of their floor space to regular beer and wine.

* To spur sales of Colorado craft beer and wine, a certain percentage of the space set aside for beer and wine would have to be devoted to craft beers and "boutique" wines.

* Liquor stores could devote up to 5 percent of their floor space to nonperishable food.