In the midst of the push to expand alcohol delivery due to COVID-19, another important development has been overlooked—the effort to allow more types of stores to sell alcohol. While grocery stores have been granted the ability to sell alcohol in several states, independent liquor store owners have fiercely opposed these efforts, fearing that their businesses will suffer if large chain retailers also enter the market.
Until now, these debates have lacked concrete data, but recent research has been published showing that grocery store alcohol sales do not have a significant impact on small liquor stores. This evidence challenges the protectionist argument that has long hindered progress in this area.
Currently, 11 states still prohibit wine sales in grocery stores, while four prohibit beer. Efforts to expand alcohol sales to grocery stores have faced opposition from liquor store owners in states like Mississippi, Connecticut, and Maryland, who fear increased competition.
The impact of this protectionism extends beyond the alcohol market, affecting the availability of stores like Costco, Whole Foods, and Trader Joe’s in states with restrictive alcohol sales laws. This limits consumer choice and economic opportunities in these regions.
Liquor store owners often cite public health concerns and the economic impact of increased alcohol consumption to justify their opposition to grocery store sales. However, new research has shown that allowing grocery stores to sell alcohol can actually benefit the economy and increase tax revenue.
States like Oklahoma and Colorado have turned to ballot initiatives to expand grocery store alcohol sales, reflecting strong consumer support for this change. Despite successful initiatives, legislative efforts to overturn these reforms continue to be introduced.
Recent research on the impact of allowing wine sales in Tennessee grocery stores has shown that small liquor stores have not been significantly affected. In fact, the reform led to an increase in wine sales tax revenue for the state.
This evidence contradicts the protectionist claims of liquor store owners and highlights the benefits of allowing grocery stores to sell alcohol. Lawmakers should consider this research when making decisions on alcohol sales regulations.
