Colorado Beer Case Study

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A Case of Colorado Beer – Convenience Store Advocate

One may state that upon the passing of the new beer law, some sales in the existing liquor stores may decline. Despite this possibility, this can present a major expanding opportunity for all the craft beer creators in the area. As a convenience store advocate, I support the passage of House Bill 1192, which would allow grocery and convenience stores to sell full strength beer. While there are arguments on both sides for and against this Bill, one must recognize that convenience stores sales were already affected by the recent changes to the law allowing Sunday sales of liquor, malt beverages and wine. We have seen a decrease of 16 % in sales of 3.2 beers during the 1st quarter following the change. This has had a significant impact on the ability of the convenience store to compete with alcohol sales on Sunday, creating an inequity in the market.

The state of Colorado has one of the highest percent of microbreweries in the United States per capita and is famous for craft beers. Colorado has a higher percentage of alcohol consumption than 60 percent of other states. The higher level of Colorado liquor consumption per capita could correlate to widespread retailing of liquor in the state, along with a slightly younger population and higher rate of tourism. Colorado consumers not only consume more per capita than the US average, but also are more inclined than the average to buy premium liquor products that support the local industry. (Summit Economics, 2009) This means that the local convenience stores are not going to take the loyal consumers from the local liquor stores.

In limiting liquor sales, the state government has effectively allowed licensed liquor stores to charge whatever that they want for their products and in response to these changes, these entities have raised the prices considerably. Chain convenience stores are able to buy more products from distributors either by storing...
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