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Colorado Springs liquor store owners say new licensing law could help them stay afloat

Liquor licensing law
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COLORADO SPRINGS — Many Colorado Springs liquor store owners say a new licensing law could help their businesses stay afloat after a few tough years.

Governor Jared Polis signed Senate Bill 33 into law on April 10 which halts the planned expansion of hard liquor licenses for big-box stores and grocery chains across Colorado. The law aims to throw a lifeline to local liquor stores after a voter-approved proposition allowed the sale of wine in grocery stores, which led to a decline in sales for mom-and-pop alcohol stores.

Robert McNeely, the owner of Cheers Liquor Mart in Colorado Springs, said his sales went down by 15 to 20% since the proposition allowing grocery stores to sell wine.

"When the wine bill went through, it was pretty detrimental to sales and everything. So liquor would have been a nail in the coffin," said McNeely.

He said many local alcohol stores started to focus on hard liquor sales since Colorado law limits the number of hard liquor licenses given to large chains.

A 2016 state law planned a slow rollout of hard liquor licenses to big-box stores with the intent to reach unlimited licenses in 2037. Right now 36 large stores across Colorado are licensed to sell hard liquor, including stores like King Soopers, Safeway, Costco, and Target. In Colorado Springs, that includes the Costco on North Nevada Avenue and the Sam's Club on East Woodmen Road.

Senate Bill 33 caps the current number of liquor-licensed drug stores and prohibits any more big-box stores from receiving the license. Gregor Huesgen, the owner of Downtown Fine Spirits and Wines in Colorado Springs, said the new law will help small businesses stay open. He said it will also preserve a large selection of local craft beer and wine for customers, which is not normally sold at large grocery chains.

"Colorado would have gone the direction of New Mexico and Arizona where you basically find very limited local liquor stores," said Huesgen. "I've got more selection than a supermarket has and some really good deals."

News5 reached out to several companies, including Costco, Albertsons, and Kroger, for a statement on the passing of Senate Bill 33. Albertsons and Kroger both referred us to the group Coloradans for Consumer Choice for comment. The group's director sent News5 a statement saying:

"In an era of one-stop shopping and delivery convenience, this law is archaic and out of touch with how modern families shop and live. This isn’t just about protecting an out of date system—it’s about limiting freedom of choice for millions of Coloradans. In a time when convenience is everything and families are busier than ever, this law pushes us backward. Colorado should not be stuck in outdated systems while the rest of the country moves forward. We should put consumers first, especially as the price of goods are skyrocketing."
Ray Rivera, Director of Coloradans for Consumer Choice

Randy Cook, owner of Steins and Vines in Colorado Springs, said the new law is promising for small business owners like him.

"I was just so grateful that that was signed because I think that's the right move," he said.

McNeely said Senate Bill 33 could also crack down on minors purchasing or shoplifting alcohol, as local stores are able to keep a closer eye on who's going in and out of their shop.

"Anybody can walk into King Soopers and switch out a beer in their six-pack of soda and go through a self-checkout. Here it's a lot more difficult," he said.

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