Fine, I’ll work on sundays.
That was my response to the law, or repeal of the law, that said that liquor stores could now be open on sundays. Big deal right? Well, if you have read my blog for a while then you know that I have been concerned about grocery/ convenient stores eventually being able to carry full-strength beer as opposed to the “3.2″ beer they are currently allowed to carry. I have so many problems with this issue that I don’t know where to start.
1. Part of the original agreement of liquor stores staying open on sundays was that this would not happen, grocery stores would just swallow the cost of losing money on 3.2% abv beer. If it wasn’t part of the original agreement, I doubt it would’ve ever happened, we’d still have our sundays off like everyone else. Plus, if this new law goes through, what’s going to stop them from doing it with wine? Liquor? Where does the protection of liquor stores come in? Everyone is arguing over the protection of grocery stores, that they shouldn’t lose money off of 3.2% abv beer, but why should liquor stores lose money? Is it just a question of who has more influence over our state senate/house? It seems that way.
2. 3.2% shouldn’t even exist. Grocery stores, with any sort of logical insight, would have stopped carrying 3.2% beer when the repeal first went through and they wouldn’t be losing any money whatsoever. That’s what we do if the product doesn’t sell, you move it off the shelves as quickly as possible, you don’t complain to the government about it. If it doesn’t sell, don’t carry it.
3. In Colorado the system for buying beer has already been set up. Why do you think that Colorado has soo many wonderful microwbrews? Because there is a market here. They’re sold at independently owned liquor stores and people have the wonderful option to buy whatever kind of beer they can dream of. Options are endless, and I will argue that options are the key to a successful economy, otherwise we start to resemble soviet grocery stores with grey boxes lining the shelves. Many, many breweries have already stated that if this law passes, they will be closing their doors. (Crabtree, Lefthand, Fort Collins Brewery, etc.) If they do so, what will the effect on Colorado’s economy be?
a. Tourism will decline. People from all over the United states come to Colorado for its wonderful festivals, local breweries, and things that are related to beer. The GABF (Great American Beer Festival) draws thousands of tourists every year and is seen as one of the best beer festivals worldwide. What constitutes the GABF? LOCAL MICROWBREWERIES. If half of the participating microwbreweries are from Colorado, and this law passes, you can expect half of those Colorado micros to close their doors. Thus, if enough microwbreweries close their doors, the GABF closes its doors (or moves), and Colorado misses out on millions of dollars in revenue. (This is just speculation, I have no idea how many breweries wiill or will not close their doors).
b. Lost jobs. Now correct me if I am wrong, but now is a time in our economy that jobs should be protected and created, not lost. This will have a much more profound effect than most realize; Liquor stores will shut down across the state, and employees at those stores range from 3-30 (I’ m guessing 30, I have no idea how many employees Wilbur’s or DaveCo employs). Also, liquor representatives will greatly deminish. Elite Brands is a small, but very reputable liquor distributor. They distribute mostly high-end beers, as well as wine and some liquor. Are grocery stores going to carry the Lost Abbey beers? Chimay? Port Brewing? I doubt it. So this will also effect the economies of outisde states as well. That ranges from California to Maine to Belgium. Less production means less jobs. (Shout out to Tia, Elite Brands rep).
c. I have been doing some serious thinking about the positive effect that this law will have. It will increase production for Kroger, and Wall-mart, and Safeway. It will be convenient. But what else will it do? The convenience arguement isn’t a sustainable argument, I have yet to find a grocery store in Colorado that doesn’t have a liquor store within 200 feet. i feel like the United States as a whole should appreciate the 20 second walk it takes to get to the liquor store. We should encourage convenience without dismantling every sort of physical exercise. I will spare you my argument against places like Wall-mart, because that is not the focal point of why i am writing this. This economic section of this post is to ask this: What growth will this create? The answer: none. It will only transfer the growth away from the creation of jobs (small businesses, microwbreweries, liquor reps) to corporations where an increase in employment is, at best, minimal. Keep in mind i’m not an economist. But I do care about the economy.
4. The price of hard liquor and wine will surely rise. Now that profits from beer have been diminished, it is essential that we (the liquor store) make up that money somewhere. The mark-up on beer, wine, and spirits are some of the lowest mark-ups in retail. Plus, you have to figure in: employee costs, insurance, cost-of-stock, electricity, theft, broken bottles, etc. Needless to say, the retail side of the liquor business skims its slim profits off the top, and hopes for big days to bring big profits. First off, we make most of our money on the cheap domestic beers. Those are also t he beers with the lowest margins of profit, but we rely on buying in bulk and selling mass quantities. So if 30% of our sales in in domestic beers (again i’m speculating), and we lost that 30% to grocery stores (they will be able to buy in larger bulk than us, thus driving their possible margins lower than ours, thus customers buying their domestic beers from grocers to save 50 cents), we would have to make that money up somewhere. If this law goes through, I imagine that liquor stores heavily raise their margins on liquor and wine in order to make up for it. We have to eat too.
I have more to say, but I already feel bad about leaving such a long post. Plus, I am more interested in the comments I get. I want to see what you all think about this so please, leave a response.
Regardless, I’ll smile cuz it feels good
Btho