Colorado: Senator seeks compromise on grocery store beer
Source: The Coloradoan
Nick Coltrain
April 21, 2016
A state senator is drafting a “provocative” bill he hopes will bring together liquor stores, grocers and other parties invested in the debate over where full-strength beer and wine can be sold in Colorado, potentially stopping a November ballot initiative that would open up state law almost overnight.
Sen. Pat Steadman, D-Denver, said his bill is in early stages, calling it negotiable and a “conversation starter.” In a nutshell, the bill would phase in truer free-market competition in Colorado’s booze business, where licenses to sell liquor and full-strength beer and wine are restricted to one per entity, Steadman said.
“I agree that our laws are kind of quirky and outdated, but I don’t think we should change the laws overnight,” Steadman said.
Since the end of Prohibition in 1933, Colorado has forced a business model of “small, mom-and-pop style shops” on beer, wine and liquor retailers that don’t want to be restricted to the 3.2 percent alcohol-by-weight restriction placed upon grocers. With the nation, and Fort Collins leading the way, in a craft beer boom, so-called three-two beer is quickly becoming a relic.
Grocery and convenience stores and chains seek to cash in on craft beer’s popularity, and many potential customers in Colorado are eager for the convenience of picking up some of Odell’s finest with their dinner fixings. Steadman is worried that loosening sales restrictions on grocers would result in smaller liquor stores being suffocated by the buying power and free-market weight chain stores carry.
He sought and received permission from Senate President Bill Cadman to introduce this late bill.
“Whats in the bill right now, I’m not laboring under any false illusion that what’s in the bill is something the legislature passes. It’s a conversation starter.”
While details will still be worked out, the broad strokes of Steadman’s proposal include expanding the number of liquor licenses that an entity can have to five and allowing entities to purchase additional licenses from others that hold them. It would also prohibit two full-strength retailers from operating within 2,500 feet of each other. That would spur normal business transactions, instead of the bigger fish simply eating the smaller one, Steadman said.
Both provisions would sunset after 10 years. He described that as a “transition period.”
Only 20 days remain this legislative session, making Steadman’s effort a late push on a big issue.
“I have no idea what’s going to happen,” Steadman said. “I’m willing to try, I’m willing to bring people together and to lead this conversation. Whether we get this done, I don’t know. And if this comes to the 2017 session, that really depends on what happens in November and the ballot initiatives.”
Mat Dinsmore, owner of Wilbur’s Total Beverage, said he’s interested to learn more about the proposal but ultimately reserves judgment until he has a chance to hear the details.
He also maintained his it’s-not-broke approach to the push to change the laws.
“Colorado liquor laws have worked for over 85 years and have created one of the best craft beer and craft distillery cultures in the nation,” Dinsmore said.
In a written statement, Your Choice Colorado campaign manager Georgie Aguirre-Sacasa said the pro-grocery store sales group is glad others are pushing to change Colorado’s “antiquated” laws. The group isn’t ready to take its foot off the gas as it gathers signatures for a November ballot initiative, however.
“We look forward to reviewing potential legislation, at the same time however, we are not altering our plan to take this directly to Colorado voters in November should a compromise not be reached,” Aguirre-Sacasa said in a statement.