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THURSDAY, MARCH 6, 2014
THE UNIVERSITY DAILY KANSAN
STATE
Small liquor stores fret about grocery store bill
ELISE REUTER
news@kansan.com
news@kansan.com
TOPEKA — Soon, Kansas residents may be able to purchase a bottle of wine with their groceries. In a hearing Wednesday, lawmakers discussed House Bill 2556, which would allow grocery and convenience stores to obtain liquor licenses.
The bill, which was originally proposed by Uncork Kansas, differs from previous attempts by instating a 10-year license freeze to help liquor store owners adjust to the new competition.
"The 10-year cap ultimately benefits the liquor store owner who would like to get out of the business," said Jessica Lucas of Uncork Kansas.
According to the bill, store owners wishing to sell liquor would have to purchase an existing license from a retailer in their county during the 10-year period. A slow phase-in would allow these stores to gradually begin selling alcoholic beverages. In 2017, stores could apply for a license to sell "strong" beer (with an alcohol content exceeding 3.2 percent), and in 2020 grocery and convenience stores could sell both beer and wine. By 2024, licenses for all types of alcohol will be available.
"Consumers ultimately win when there is competition in the marketplace and there are more places to buy products," Lucas said. "We're bleeding
a lot of money to Nebraska and Missouri when Kansans go there to buy alcohol and groceries at the same time."
While Lucas and other supporters of Uncork Kansas, including many convenience chains and grocery stores, say the compromise should help the bill pass, Lawrence liquor store owners are not satisfied with the deal. Those looking to keep their licenses and stay in the business were especially concerned about the addition of grocery stores to an industry that is already competitive.
"Consumers ultimately win when there is competition in the marketplace and there are more places to buy products."
JESSICA LUCAS
Uncork Kansas spokesperson
"It's said there's a monopoly in the state of Kansas; well, there's not," said Matt Easley of On the Rocks Discount Liquor. "Owners are limited to one liquor license. You have to really compete to gain business."
While a liquor store might have a larger selection of available brands, including beverages put out by local wineries and breweries, most convenience stores and standard grocers won't have the space dedicated to a large range of products. While this
gives larger wholesale liquor stores an advantage, smaller businesses will still feel the hit.
"I don't really like the idea of people I've known for many years losing their livelihood," said Jon Smiley, owner of Cork and Barrel. "This would affect businesses that are more convenience driven, and less selection and price driven. So if you're a small liquor store next to a grocery store, you're in trouble."
The biggest concern among the bill's opposition is the availability of alcohol for minors. If HB 2556 is passed, the age for selling alcohol would drop from 21 to 18. This poses some concerns for local law enforcement who already struggle to combat underage drinking.
"Alcohol is a regulated product; it's not a pair of shoes or a bag of potato chips." Easley said. "Liquor store owners have a vested interest in not selling alcohol to minors, but for grocery stores it's just another item."
Some of the bill's broad economic implications including employment and taxation-merit further discussion. The House Committee of Commerce, Labor and Economic Development will work on the bill Thursday, with possible action in the afternoon.
— Edited by Alec Weaver
Contributed by KU Wire Service.
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Tuck Duncan, lobbyist for the Kansas Wine and Spirits Wholesaler Association, watches a House committee hearing on liquor legislation Wednesday at the Statehouse in Topeka. The committee is reviewing proposals to ease restrictions on microbreweries, grocery stores and convenience stores.
news@kansan.com
Bill would end restrictions on Kansas microbreweries
TOPEKA The Kansas House Committee on Commerce, Labor and EconomicDevelopmentheard testimony Wednesday on House Bill 2598, which would remove self-distribution and production restrictions from microbreweries.
EVAN DUNBAR
Under current law, a microbrewery is limited to producing 100 to 15,000 barrels of domestic beer in a license year. There are 31 gallons of beer in one barrel, which is equivalent to 330 12-ounce servings.
Current law restricts a liquor retailer to purchase only from a licensed distributor or confiscated liquor at a sheriff's sale. This bill would allow liquor retailers to purchase from a microbrewery or farm winery as well.
Jason Watkins, executive director of the Kansas beer wholesalers opposed the bill, saying that if it passed and microbreweries began self-distributing their products, the state would be forced to
allow manufacturers of all alcohol products, including out of state producers, to self-distribute.
"Not only would this make controlling, tracking, regulating and taxing alcohol nearly impossible, it would also create a playing field where only the largest alcohol interest could compete," Watkins said.
Watkins cited the five pillars of a "three-tier system" of Kansas alcohol production, distribution, sales and consumption laws, that he said "balance business needs and market growth with public health and safety concerns."
However proponent of the bill R.G. Johnson, owner of the High Noon Saloon in Leavenworth for more than 20 years, said the current
"It's a system that levels the playing field, encourages competition and allows the private sector to thrive and create local jobs," Watkins said. "If not for our (distributors) and the 'threeetery system,' there wouldn't be craft breweries in Kansas."
laws in place are restrictive in allowing microbreweries to enter the market.
"If I can simply service local accounts and it's a nice, clean operation, it can start to be prosperous."
"Many states allow microbrews to self-distribute, and their food service and beverage industry flourishes," Johnson said.
Johnson said if microbreweries like his were allowed to self-distribute, it would attract new workers and business to the market. He said that in five years he would create new jobs, estimating the number of employees to grow from 40 currently, to about 100 if he could self-distribute.
Final committee action on HB 2598 is scheduled for Thursday.
Contributed by KU Wire Service.
Edited by Alec Weaver
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