The main argument against HB 1192 is by allowing grocery stores to sell full strength beer, they will put liquor stores out of business. The thought is if liquor stores lose their beer business, they will no longer be able to keep their employees and will possibly fail. Liquor stores claim beer sales account for as much as 70% of their business. If they can’t sell beer, the store will be forced to close.
This hasn’t happened in the other states which allow grocers and convenience stores to sell full strength alcohol. California and Oregon allow grocers to sell full strength alcohol and liquor stores still exist. According to getRealBeer.com, a survey in Southern California showed "of 292 Vons supermarkets indicates that fully 70 percent of them have at least 2 retail liquor stores within one-half mile – many of them in the same shopping center".
When you point out other states have liquor stores and do just fine, the common argument against this point is "we are not California". Well this is true. We are also not Oregon, Arkansas, Idaho, Iowa, Maine, or any of the other 38 states which allow grocery stores to sell full strength beer. Somehow small brewers and liquor stores survive just fine in these states when grocery stores sell beer. In fact, of the 5 major cities with the most liquor stores per capita, four allow the sale of full strength beer in grocery and convenience stores. Denver is the lone exception.
I find this particularly interesting, because this guy is a small craft brewer in Denver, and he thinks the "full strength beer in grocery stores == craft brewers are screwed!" argument is BS.
Also worth a read is his article on how our current three-tiered alcohol distribution system came to be, and its strong and weak points.