As Coloradans, we pride ourselves on our trailblazing and entrepreneurial spirit. We have a history of leading the pack and innovating new paths forward. In one respect, however, liquor laws and licensure, our state is falling far behind — and Senate Bill 33 is a prime example.
Senate Bill 33 is a protectionist measure that will hurt Colorado businesses, resulting in lost jobs, investment, and revenue. This bill, currently being considered by the state legislature, unfairly prohibits any additional liquor licenses for grocery stores and other large retailers in favor of protecting liquor store market shares. This measure has continued to move forward, with blatant disregard for consumer convenience and the millions of dollars grocers and other retailers have already invested.
In 2016, when the Legislature passed bipartisan Senate Bill 197, dubbed the “Grand Compromise”, grocery stores and convenience stores were finally allowed to sell full-strength beer – similar to 30 other states. In 2022, voters passed Proposition 125 to allow the sale of wine in grocery stores, again choosing to expand their options.
Since the passage of Senate 197 and Proposition 125, Colorado grocery stores, convenience stores, distributors, and alcohol product manufacturers have made major multi-million dollar investments including hiring more staff, creating more products, and purchasing liquor licenses – at great cost – from liquor store owners. The law already requires grocery stores and other retailers to buy not one but two liquor licenses from existing liquor stores in order to acquire a license themselves. In fact, grocery stores and other retailers have already spent millions of dollars purchasing more than 70 liquor licenses from liquor stores.
Continued efforts to roll back the will of Colorado consumers and limit the market like Senate Bill 33, will only lead to job loss and negatively impact businesses across the state. Coloradans have consistently voted to expand access to more convenient and diverse alcohol purchasing options, yet few other sectors of the economy have received the level of protectionism the legislature is now providing to liquor stores.
This is in spite of the fact that liquor stores were 40% more likely to sell alcohol products to underage buyers. In fact, in 2023, liquor stores accounted for 28.8% of violations, while large retailers and grocers were responsible for only 6.8%. If, as it should be, ensuring safe alcohol sales is our priority, limiting licenses for retailers with stronger compliance records is not in line with that goal.
Grocery stores, convenience stores, and other retailers play key roles in our economies and communities, having invested over $59 million in philanthropic support and they employ tens of thousands of Coloradans. More than 30 states already allow some form of beer, wine and spirits in grocery stores, providing consumers and families with convenient, safe, and affordable options for purchasing alcohol.
This is not to suggest that we shouldn’t work to support the local businesses that are the backbone of our economy. We strongly support our small businesses, and in fact, small liquor stores still maintain 70% of the market share, and large format liquor stores still hold around 24%. Despite claims to the contrary, retail liquor licenses in Colorado have remained relatively constant, with 1,558 licenses today — nearly the same as 2019 and 2020.
We simply believe that our economy functions best when we follow our entrepreneurial spirit and let consumer and business voices lead the way. It’s how we create jobs, generate investment and opportunities, and build long-term, sustainable prosperity for all Coloradans.
While there is certainly a role for government to play, history has shown us time and again that unnecessary interference, protectionism, and policies favoring one sector over another rarely achieve the desired outcome. We are hopeful that lawmakers will put consumer choices, Colorado businesses, and fair, open markets first and oppose Senate Bill 33.
Jeff Keener is the president and CEO of the South Metro Denver Chamber.
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