Market Watch, March 1, 2017
Last June Colorado Governor John Hickenlooper signed a bill that would transform the states beverage retailing landscape Senate Bill 16 197 SB16 197 sponsored by term limited Democrat ic state senator Pat Steadman of Denver was a historic compromise The debate had lasted for decades from the 1933 repeal of the Volstead Act through the final two weeks when industry stakeholders negotiated at the Colorado capitol every day until midnight With national grocery chains threatening a ballot initiative that would change the system overnight the pressure was on to strike a deal before the 2016 legislative session ended After weeks of strained delibera tions and with only four hours left to approve or veto measures passed by the legislature Hickenlooper signed the bill into law At the end of Prohibition when each state determined its own laws governing the sale of beverage alcohol Colorado decided that an individual or company could hold just a single retail license The result was a competitive market that served as a cata lyst for a vibrant economy of craft breweries distilleries and winer ies SB16 197 changed that law allowing pharmacy licensed grocery stores to gradually phase in more liquor licenses while giving independent retailers the chance to either compete in the new environment or sell their stores and transition out of the business Beginning this year pharmacy licensed grocery stores with one liquor license may apply for four additional licenses provided they purchase at least two existing retail stores in the same area including all stores within 1500 feet 3000 feet in towns with fewer than 10000 people The number of licenses allowed for grocery stores will increase gradually every five years rising to 20 licenses in 2032 and an unlimited number in 2037 Also starting this year current off premise licensees may apply for another license plus additional licenses in 2022 and 2027 for a total of four As with the grocery stores the liquor stores must be 1500 feet or 3000 feet from other off premise licenses They may add food and other merchandise to their retail mix not to exceed 20 percent of profits The law also provides for a commit tee that will recommend how to implement the replacement of low alcohol beer 32 percent alcohol by weight with full strength beer at all stores The law aims to give consumers the convenience of buying spirits wine and full strength beer while theyre shopping for 36 MARKET WATCH MARKETWATCHMAG COM MARCH 2017PHOTOS BY MATT NAGERWild WestIn a landmark compromise Colorado has gone from being a one license state to a multiple license market and retailers are preparing for the changeBY ANGEL ANTINMW0317_
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