Grocery Stores vs. Liquor Stores

08 Jul 2010 09:59 #1 by Biggie
Grocery Stores vs. Liquor Stores



From an owners point of view-

There has been mounting pressure to change the liquor laws in Colorado (which are often called archaic) to allow grocery stores the ability to carry full strength wine, liquor, and beer. I understand the convenience in getting your groceries and wine at the same time. I get it. I also understand that other markets i.e. California, do it and do it successfully. So the question is why can’t we?
After prohibition the Federal Government allowed the states to make their own individual laws on how to regulate liquor. That is why every state has different laws. Colorado specifically chose what is called a three tier system. The three tiers are producer, distributor, and retailer. It was also intentionally decided one liquor license per applicant. This creates an industry in which individuals are strongly invested in the success of their own store.

All chain stores are able to apply for a license and can use it at one location. Costco, Safeway, Whole Foods, Target, Rite Aid, all currently have one store with a license and sell products inside them. All these major stores have come into the greater Denver market in the last handful of years but aren’t major players in the industry. Why is that? Chains claim that consumers want them to be able to sell products that are in the liquor store, but yet King Soopers hasn’t even bothered with a license. Why not? They have been able to get a license forever…..the law is archaic. Why haven’t any of these chains opened a superstore? The answer is simple. They aren’t passionate about our industry like us and the idea behind one license worked. It has created a strong, thriving industry that is attractive for investors and individuals to call their career.

So you may ask- if those big names haven’t had that big of an impact in the market why can’t chains and independents co-exist? The answer to that is a bit more complicated but the simple answer is it will water down the industry to the point of putting most liquor stores, local wineries, distilleries, small distributors, and micro-breweries out of business. It also would cost local communities jobs and tax revenue. Make no mistake if you think it’s a good idea for grocery stores to be able to sell wine, liquor, or beer it will cost the state thousands of jobs. The very threat of this change has already negatively affected the value of liquor stores throughout the state and has hurt the industry as a whole.

Jon Guelzow

Jon is the owner of Biggie Liquors the largest provider of wine, beer and spirits along the 285 corridor. Pete has 25 years experience in liquor and Jon has 15 years. Best prices, best selection and knowledgeable staff. Come on by and see us!

Biggie Wine and Liquors
303.816.9013
We are in King Soopers Shopping Center


Any questions about wine, beer or spirits for Jon, email . .

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