At issue, Proposition 125 would let shoppers get wine at grocery stores, but this might cost smaller wine retailers important business. Note: you probably won’t be able to get the pictured St. Emilion Grand Cru at Safeway even if Prop 125 passes!
At its simplest, passing Proposition 125 would allow fermented malt beverage (beer) licensees to also sell wine and “other vinous liquors,” such as sake, mead, or ciders. The initiative itself is more detailed than the simple description, although much of this detail is about setting up a regulatory structure for outlets likely to begin selling wine if Prop 125 passes. This is a statutory initiative, not Constitutional, and would only require a simple majority to pass.
In essence, a number of grocery stores or convenience stores sell beer, but would not be able to legally sell wine unless Prop 125 (or something like it) passes. Some of these stores are large chains, like Safeway or Target, but this initiative would not be limited to just the large chains.
If Prop 125 passes, outlets now able to sell wine would also be able to conduct wine tastings, but they would be required to obtain authorization from local licensing authorities to do so. Stores could not sell alcohol between midnight and 8:00 a.m., could not sell alcohol at below cost, and could not be located within 500 feet of a school.
Prop 125 also includes prohibitions on moving new businesses able to sell wine to within given distances of existing businesses able to sell wine. These prohibitions are the same as prohibitions in existing law for businesses that sell beer, and include:
- Within 1,500 feet of another licensed outlet.
- Within 3,000 feet of another licensed outlets in towns or cities of fewer than 10,000 people.
- If the town of 10,000 people or fewer is contiguous to the City and County of Denver, no closer than 1,500 feet to another licensed outlet.
Who’s Behind Prop 125?
As of the most recent campaign finance filing report on Sept. 19, the Prop 125 proponent committee “Wine in Grocery Stores” had taken in more than $11 million in contributions – but it’s important to know this committee is supporting both Prop 125 and Prop 124. Notable contributions coming from corporations that more than likely would benefit from Prop 125 include (totals as of Sept. 19):
- Kroger: $1,022,774.65
- Target $1,154,187.00
- Albertsons Safeway $1,124,675.00
- Whole Foods: $1,313,635.00
Opponents of this measure will say it could hurt small companies and benefit mega-corporations. Just for perspective, 2021 gross revenue for the corporations making campaign contributions listed above weigh in at:
- Kroger: $138 billion
- Target: $104 billion
- Albertsons Safeway: $69 billion
- Whole Foods: About $16 billion annually
The committee opposing Prop 125, called Keeping Colorado Local, has raised about $457,000, but it’s also opposing Propositions 124 and 126. It has received $100,000 from Hazel’s Beverage World in Boulder and $50,000 from Argonaut Wine and Liquor in Denver. Readers interested in more personal perspective might appreciate this story from Colorado Public Radio, which interviews small retailers concerned about the possible impact to their businesses and shoppers who might prefer the convenience of one-stop shopping.
Pro:
- Shoppers might want the convenience of being able to buy wine at stores that already sell beer, along with other items they need, without needing to go to a separate location for wine.
- About 37 other states already allow wine sales in grocery stores and/or convenience stores.
Con:
- Smaller liquor stores or specialty wine outlets might depend on wine sales to make ends meet, and Prop 125 could mean large corporate retailers would take some of their sales volume.
- The Prop 125 campaign is bankrolled by some of these large corporations, which indicates they believe the campaign spending will be worth it through increased sales volumes.
Richard’s Take
I’ll strongly recommend voting NO on Prop 125, but can appreciate some of the pros and cons. I’ve worked at the State Capitol or as a consultant to people working in governments most years since 2008, and have seen numerous bills and lobbying efforts from large retailers to expand their alcoholic beverage offerings. There’s no denying they’re spending lobbying money as more of an effort to increase sales volume than to give customers more shopping choice. Well, they can try denying but I won’t believe it, and you shouldn’t either.
Prop 125, like Prop 124, would cut into the sales volume of smaller liquor store owners or other stores that specialize in wine. With Prop 125, it might be a stretch to say it would put many non-corporate stores out of business, but it could certainly impact the stores’ bottom line.
I do understand how being able to buy wine at a grocery store could be a convenience for shoppers. I know not every person looking to buy wine is looking for a selection that matches the store I visited in Bordeaux that literally made me salivate. I could imagine that some people would mix and match their shopping habits if Prop 125 passes, buying a nice bottle of wine at a specialty store for certain occasions but going inexpensive at a big box at other times. But specialty wine merchants or smaller liquor stores typically have lower-cost wine selections available, and it seems logical that Prop 125 could hurt smaller retailers who rely on being able to sell the occasional $8-15 bottle of wine to people on lower budgets.
I also happen to like shopping at places like Safeway and Target, nothing against them, but they have enough products to offer in their super-large stores, and enough pretty dependable revenue that they don’t need wine for their economic survival. And let’s be honest, the money they’re spending in campaign funding this year would come back to them mega-multiple-fold due to increased sales over the many years to come – and if Prop 125 passes this year, it could potentially be forever since it’s tougher to pull back once something’s established than it is to try it in the first place.
Anyhow, here’s your chance to stand up for the little guy and to help them make a living. Vote NO on Prop 125.
