February 02, 2009 10:14 PM UTC

Full-Strength Beer Battle

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• by: Colorado Pols

As The Colorado Independent reports:

Tom Mullen of Eagle-Vail could see 20 years of hard work in the retail liquor business evaporate if the state legislature passes a law allowing full-strength beer to be sold in supermarkets and convenience stores.

Backers of the legislation – H.B. 1192 – sponsored by Sen. Jennifer Veiga, D-Denver, and Rep. Buffie McFadyen, D-Pueblo, argue it’s time to roll back the Prohibition-era holdover mandating that only weaker, 3.2-percent-alcohol beer be sold in such stores.

But Mullen, who owns and operates West Vail Liquor Mart, argues the 1,650 independent liquor retailers in Colorado will be devastated by out-of-state corporations controlling the market.

“Creating a business environment that further reduces our choices to cookie-cutter type models is not in the collective interest of our community,” said Mullen, who points out that his company contributes to local nonprofits, provides housing for its employees and spends money locally.

“The money I make and the money I spend stays in our valley and in Colorado,” he said. “It will be better for this community, in this recessionary climate, if the law does not change, because large corporate expenditures and profits leave the community and Colorado.”

Mullen and other independent retailers and microbrewers have the backing of the Colorado Licensed Beverage Association and the Colorado Coalition of Liquor Store Associations, which conducted an economic study indicating that 40 percent of independent liquor stores would be forced to close within three years after losing 70 percent of their beer sales to chain stores.

But supporters of the legislation, including 7-Eleven, Safeway and other major convenience and grocery store chains, say they are losing money because of last year’s law allowing Sunday full-strength beer sales and that the independent retailers now have an unfair monopoly.

At first glance, we’re not sure why this bill would be a good idea in a down economy – no need to hurt more local businesses than are already suffering – but what do you think?

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