OKLAHOMA CITY — The possibility of allowing grocery and convenience stores to sell liquor is being floated by a lobbyist for Walmart and some other retailers who met behind closed doors in Oklahoma City on Tuesday.
In an email to stakeholders, Pat McFerron, founding partner of CMA Strategies, had asked participants what they would like to see changed about the state’s alcohol laws. He also asked what possible change would cause participants to oppose a comprehensive alcohol rewrite.
He also asked: “How willing is your principal to help underwrite an aggressive campaign to change Oklahoma’s laws?”
McFerron is a lobbyist for Walmart.
“Our customers have told us they want more choice and convenience in shopping for spirits in Oklahoma and we are interested in seeing what role we might be able to play in advocating for them on this issue,” Walmart said in a statement provided by McFerron.
People are also reading…
Brett Robinson, president of the Beer Distributors of Oklahoma organization, attended the meeting via Zoom. He said he was grateful that Walmart had sought input from others at this stage.
He said it was a “friendly and frank discussion among peers in the alcohol industry in Oklahoma. We heard what Walmart had to say, and we are going to continue to examine these issues very closely and see how these things unfold.”
He said some representatives from convenience stores also want to sell spirits.
Michael Junk, a lobbyist for QuikTrip, did not return a phone call seeking comment.
To change the state’s liquor laws, lawmakers could put a state question on the ballot.
If that doesn’t happen, supporters could circulate an initiative petition to get a constitutional change on the ballot.
A few years ago, voters decided through a state question to allow grocery stores to sell cold beer and wine.
The Retail Liquor Store Association of Oklahoma opposes letting grocery and convenience stores sell spirits, said Robert Jernigan, the organization’s president.
He said some 11% of the liquor stores in the state closed after the last round of alcohol-modernization laws took effect.
“I lost 30% of my wine revenue overnight when Walmart started selling wine,” he said. “I would expect to lose at least that much in spirits, which would probably do me in.”
He thinks critics would be able to defeat another modernization effort.
Dirk van Veen is vice president of the Retail Liquor Store Association of Oklahoma. He said revenue from sales would go to out-of-state companies under the proposed changes as opposed to staying in Oklahoma because more locally owned package stores would close.
Fewer liquor stores, tax revenue shifts: How have alcohol modernization laws affected Oklahoma since Oct. 1, 2018?
Liquor law changes
In 2016, the passage of Senate Bill 424 (allowing strong beer to be sold at breweries) and State Question 792 (allowing wine and all beer to be sold at grocery and convenience stores and enabling liquor stores to sell cold beer) were among the hallmarks in Oklahoma alcohol reform. The new laws went into effect Oct. 1.
QuikTrip spokesman Mike Thornbrugh and Marshall Brewing founder Eric Marshall are pictured during the first day of strong beer and wine sales at QuikTrip.
Loss of liquor stores
Licenses for retail spirits dropped from 649 at the beginning of October to 644 at the end of December last year, according to the ABLE Commission. Kingspointe Wine in Tulsa, pictured, closed shortly after the law change. STEPHEN PINGRY/Tulsa World file
Wine licenses
Selections of wine sit on a shelf at Reasor’s. According to the ABLE Commission, retail wine licenses have grown to 1,713 from 1,600 in the period of Oct. 1-Dec. 31 last year.IAN MAULE/Tulsa World
Refrigerated beer at the grocery store
The beer coolers in Reasor’s locations will be stocked with full-strength products similar to what is stocked now, along with some new beer choices. Some beer selections will not be refrigerated, but that could change based on customer demand. Retail beer licenses have increased from 3,055 on Oct. 1 to 3,337 on Dec. 31, according to the Oklahoma ABLE Commission.
Tax revenue shifts
About $9.7 million in alcohol taxes was collected in October, compared with a monthly average of nearly $10.5 million during the first three months of the fiscal year. The revenues shifted as less 3.2-ABW beer was sold. Slightly more than $380,000 was collected in “Low Point Beer Tax” in October, compared with more than $1.8 million in September. “Strong Beer Tax” revenues spiked, however, as collections went from nearly $214,000 in September to more than $1.4 million in October.
Source: The Oklahoman
Wine sampling
SB 297 allows wineries to give away samples of wine.
Longer hours Saturday night
Consumers will be able to purchase strong beer and wine from grocery and convenience stores until 2 a.m. Sundays.
Hours of operation
SB 411 expands hours of operation for local breweries and liquor stores.
No more special low-point versions
While some local breweries will sell low-point beer (only because some styles of beer aren’t “strong”), brands like Budweiser and MillerCoors will no longer be 3.2. However, a lot of Mexican beer, such as Corona and Tecate, is already 3.2 and won’t be changing.
Beer cave
QuikTrip is testing walk-in beer coolers, or beer caves, at some of its stores. The concept could be expanded to more locations if it proves to be successful. What will be new for the convenience store is the opportunity to sell locally brewed strong beer.
New beer brands
More than 30 new beer brands are coming into the state, including Breckenridge, Elysian, Golden Road and Karbach, as well as strong versions of current 3.2 beer varieties. The beers will be distributed to grocery, convenience and liquor stores.
Accessories at liquor stores
Liquor stores will be able to sell nonalcoholic items, such as bottle openers and mixers, as long as those sales don’t surpass 20 percent of the monthly total.
Local brewers
Local craft breweries, such as Marshall Brewing Co., will be able to sell their beers at grocery and convenience stores, including Reasor’s and QuikTrip.
Local brewers at QT
QuikTrip plans to sell local beers from Cabin Boys Brewery, Marshall Brewing Co. and Prairie Artisan Ales, as well as COOP and Anthem.
Local brewers at Reasor’s
Reasor’s plans to carry local beers from Dead Armadillo, Marshall Brewing Co., Cabin Boys and Prairie Artisan Ales, along with COOP, Anthem and Iron Monk.
Brewpubs
Tulsa brewpubs like Elgin Park will be able to brew its own strong beer and sell it onsite.
TOM GILBERT/Tulsa World
Licensing
SB 646 updates licensing laws to support implementation of SQ 792.
Sunday sales option
SB 211 allows a county option for Sunday sales (noon to midnight) in liquor stores.
Spouses and ownership
Other key modernization proposals signed into law in 2017 included SB 174, which allows both spouses to own two liquor stores.
Source link
