KS: Could liquor in grocery stores help solve the KS budget?
KWCH
By Devon Fasbinder
April 29, 2016
WICHITA, Kan. (KWCH) Uncork Kansas, the coalition to change liquor laws in the state of Kansas, released a plan Friday that it says could help close the Kansas budget deficit.
Uncork says if the state allowed beer, wine, and spirits in grocery stores, it could generate $40 million for licensing to sell the liquor.
Proponents say they are willing to pay as much as $200 thousand per store if given the opportunity to sell adult beverages. In a release sent out Friday, Uncorked says even at the state’s smallest grocery stores, the license buy-in would be $10,000 per store.
“Economic growth happens through free enterprise. Our customers are ready for this change and we’re pleased to bring this free market solution to the Governor and legislature knowing it will infuse the Kansas budget with much needed cash,” Jessica Lucas, spokesperson for Uncork Kansas said in a press release.
Under this plan, a one-time licensing fee per store would be paid by grocery stores to the State of Kansas. The fees for grocery stores would not all be the same.
“We are really excited about this plan because we have been able to develop a formula that tiers what is charged per store. So to the smallest community grocery stores, they pay a nominal fee in order to get into the marketplace and have those products. That would also help them and help their bottom line and insure that they are able to stay viable in rural Kansas communities,” Lucas told Eyewitness News.
The tiers would be based on the store’s all commodity value which is essentially a measure of how much the store is selling. Lucas said the square footage of the store doesn’t matter. It’s how big the sales are that determines the tier.
Uncork also proposes an annual licensing fee that they say could generate an additional $6.5 million annually.
Kansas liquor stores have opposed the idea of putting full strength beer, wine and liquor in grocery stores. Liquor store owners have said it would hurt their business and push them out of the market.
Lucas said she doesn’t think that’ll happen.
“We are not the first people to address the issues. We understand liquor stores are reluctant to change. This is not a proposal that will impact the ability to survive the marketplace,” she said. “We know that liquor stores can compete because we see it in more than 30 of the United States.”
The idea is still in the early phase. Lawmakers would have to move it through the legislature in order for it to happen in Kansas.
Eyewitness News will continue to follow this story and bring you updates, including reaction from liquor store owners, as they become available.