Support HB 1373

Critical Legislation for CO’s Local Liquor Stores, Restaurants and Craft Alcohol

Rep. Amabile, Rep. Ricks, Speaker McCluskie, Rep. Clifford, Rep. Snyder, Rep. Mabrey, Rep. Mauro, Rep. McLachlan & Sen. Roberts & Sen. Will

Saving CO’s Liquor Stores & Vital Sales Channel for CO’s Craft Beer, Spirits & Wine: 

In 2022 the out-of-state big-box stores, grocery chains and other national interests, spent $20M on Prop. 125 that narrowly passed with 51% of the vote (failing in 47 of 64 Counties). Prop. 125 allowed all grocery & c-stores to immediately sell wine, which has had a devastating impact on CO’s independent liquor stores, local economies, commercial real estate, alcohol safety. 

Prop. 125 has also negatively impacted the sale of CO’s craft beer, spirit and wine. CO’s craft industry has thrived because over 1600+ local liquor stores carry, promote & sell CO craft beer, spirit and wine that will never be carried by the national big-box & grocery chains.

HB-1373 will:

1. Help CO’s 1600+ local, Mom & Pop liquor stores fairly compete after suffering a 30-40% revenue hit after Prop. 125 “Wine in Grocery Stores” narrowly passed.
2. Ensure the most important, often the only, sales channel for CO’s craft beer, spirits and wine is able to compete with the national chains & their national alcohol brands. 

Preventing Unfair Competition Against Colorado’s Local, Family-Owned Liquor Stores:

To prevent anti-competitive behavior & avoid irresponsible alcohol sales, Colorado law prohibits retailers from selling alcohol “below the cost,” that it’s purchased from a wholesaler. Big-box stores & grocery chains have been subverting this law & deploying other anti-competitive practices to gain significant unfair advantages over CO’s local, independent liquor stores.

HB-1373 will:

1. Provides stronger, definitive language prohibiting “below cost” sales, and other discriminatory allocation and pricing practices.
2. Prevent wholesalers from discriminating against CO’s independent liquor stores by offering unearned volume discounts & national pricing to big-box & grocery stores.
3. Prohibit big-box and national grocery chains from artificially lowering their labor & operational costs by requiring “free labor” from alcohol distributors & ensures alcohol is handled, stocked, and displayed by an employee of the licensee.
4. Allows LED to recover its costs for violation investigation and enforcement.

Responsibly Selling Beer & Wine and Preventing Youth Access to Hard-Alcohol: 

Since the passage of Prop. 125, big-box retailers, grocery & convenience stores have been displaying beer, wine & high-alcohol “malt-Whiskey” products storewide - in nearly every aisle, on most endcaps, at checkout registers and even stacked in pallets at the store’s entrance. These types of displays have raised serious safety, theft, youth access and alcohol abuse concerns. 

Additionally, in 2016 & 2018, Colorado’s 1600+ local liquor stores agreed to the “Grand Compromise” that allowed big-box, grocery & c-stores to begin selling beer, wine & hard-alcohol by expanding the number of “Liquor Licensed Drug Stores” (LLDS). Today, there are (28) national, chain LLDS. However, Colorado law now needs to reflect that:

1. The big-box & grocery chains abandoned the legislative “Grand Compromise” by passing Prop. 125 (Wine in Grocery Stores)
2. These national chains chose to not include hard-alcohol in Prop. 125
3. Voters overwhelmingly killed Prop. 124 (62%) that allowed for “Chain Liquor Stores”

HB-1373 will:

1. Require big-box, grocery and c-stores to display alcohol in a centralized location on the retail floor for better inventory control, less theft & so that minors and customers can avoid being constantly exposed to alcohol displays & promotions.
2. Ensure stores only sell beer & wine (below 14% ABV) & not high-alcohol “malt-Whiskey” (Fireball, BuzzShots etc.) - popular with underage drinkers & often stolen.   
3. Convert the (28) LLDS to “Beer & Wine” Licenses so that on 1/1/25:
4. ALL grocery stores & convenience stores will sell: Beer & Wine           
5. ALL local liquor stores will sell: Beer, Wine & Spirits   

Help Local Restaurants & Liquor Stores & Maintain the “3-Tier System”

Outdated “purchase caps” prevent restaurants & taverns from purchasing more than $2,000 of alcohol annually from their local liquor store which hurts both local businesses. Due to the limited staffing, supply-chain issues, weather and other wholesale distribution problems, many Colorado restaurants and bars are forced to wait 7-14 days for a wholesaler to deliver certain alcohol products. In addition, restaurants accidentally break bottles or periodically sell out of certain products that need to be replaced quickly so when necessary, local restaurants need to be able to purchase select alcohol products from their local liquor stores.

HB-1373 will:

1. Remove the outdated and problematic $2,000 cap on alcohol purchases & delivery between local restaurants and their local liquor store.
2. CO’s “3-Tier System” (manufacturers, wholesalers, retailers) will still be maintained because all alcohol will continue to be delivered from an alcohol manufacturer to CO restaurants and liquor stores by a licensed wholesaler.

COLORADO INDEPENDENT LIQUOR STORES UNITED, representing the State’s 1600+ local, independent, family-owned retailers who are a vital part of their communities, reinvest in their local economies and help Colorado’s craft beer and spirits thrive.