Change is coming to Colorado’s liquor industry

Change is coming. Whether liquor stores like it or not. Whether craft beer makers like it or not. Whether local wine makers like it or not.

Ultimately, voters dictate what does and does not become law and nearly everyone agrees, this November Coloradoans will likely approve a ballot measure to put full strength beer, wine, and liquor on grocery store shelves. The only question now: will Colorado laws help with the transition?

A last minute piece of legislation passed by Colorado lawmakers attempts to do just that – help those at risk with the transition. Right now, Colorado is one of only 5 states that does not offer full strength beer, wine, or liquor anywhere other than liquor stores, restaurants, or bars. Independent research done by Colorado State University economics professors shows competition will drive prices down. Plus, we’ll have the convenience of one-stop shopping.

That’s something consumers like Broomfield resident, Steve Stroh, want. But he says, “I would still go out and get [locally crafted beer] because it’s what I prefer.” I met Steve in a Westminster pub where he was catching up with his long-time friend Wade Robinson. Wade says alcohol in grocery stores won’t stop him from enjoying micro-brews either, and he says, “you can’t sit and have a beer with friends in a grocery store.”

The bill the governor recently signed into law would provide a 20-year transitional period. During those 20 years, grocery stores would be granted limited liquor licenses. If they want to expand immediately they would need to buy current licenses from surrounding liquor stores. This allows liquor stores the opportunity to sell and move on, or refuse to sell and have time to position themselves to compete once alcohol goes on grocery store shelves. Most other states didn’t offer that opportunity. One day liquor stores controlled the sale of adult beverages, the next they were competing with big-chain grocery stores where everyone already shops for food.

This is why organizations that represent local craft brewers and liquor stores support this legislation.

Do liquor stores want to compete with big grocery store chains? No. Right now they control the alcohol market. Make no mistake. Some companies will go out of business. They will be swallowed by bigger corporations. That’s the way capitalism works. Consumers steer the ship and if Colorado consumers want to buy beer, wine, and/or liquor in grocery stores, that’s going to happen. But, with this new law, smaller businesses will have a fighting chance.

The Boulder-based Brewers Association ranks Colorado third in the nation for number of beer breweries per capita. It’s a rich part of our culture and thousands of people enjoy going to local breweries to sample our outstanding craft beers. Will this law change that? Not likely. One of the things that makes locally made beer so good is it IS brewed in smaller batches (thus, the name “micro-brew”). Right now many can’t keep up with demand as it is. Vermont and Oregon, who come in first and second in number of breweries per capita, continue to blossom despite the fact beer there is sold on grocery shelves.

While the association has not been asked to officially weigh in on this measure, the director, Paul Gatza tells OUT FRONT Colorado that right now consumers do not have “the greatest potential for choice diversity.” He admits some of the smaller brewers may have a more difficult time getting market access. But, Paul says “overall volume sales may grow slightly,” under the new legislation. That’s good news for consumers and micro-brewers. Many locally crafted beers aren’t sold in liquor stores, anyway. And some find themselves unable to keep up with demand as it is.

Hoffbrau Westminster’s general managers hears us talking about whether grocery store liquor will stop people from going out to enjoy Colorado beers. Amy Woszczynski laughs and empathetically yells out “Oh, they’ll still come!” After 17 years in the business, she knows what customers want and research supports her belief.