Colorado Beer
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 …show more content…
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 it or by buying for multiple stores. Buying from distributors in bulk allows us as storeowners to charge lower prices for the same product as the liquor stores. Buying in bulk also saves on transportation cost as well cuts down on environmental …show more content…
Consumer preferences determine to which products a store will sell or dedicate shelf space. If 3.2 beer is not selling, convenience stores will remove it from their shelves to free up shelf space for products that will sell. The result will not only affect convenience stores, but the consumer. Consumers will be adversely affected by limitations being placed on where they can purchase beer. If consumers care more about convenience, then they may not take the time to make an extra stop at a liquor store for beer. This will affect overall beer sales, which trickles down to the beer industry as a whole, lowering total overall profits.
Many people have said that allowing ‘big business’ to liquor will adversely affect the vibrant craft beer culture that has routed itself in Colorado. I believe that the exact opposite will happen. Allowing convenience and grocery stores to sell beer will give these craft brewers a larger market to which they may sell their product. If their product proves to be a popular one then the larger chain stores will be able to assist the craft brewer in receiving a larger destruction pool rather than limiting it to small mom and pop stores that in many cases do not have the excess funds to risk on a new
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 …show more content…
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 it or by buying for multiple stores. Buying from distributors in bulk allows us as storeowners to charge lower prices for the same product as the liquor stores. Buying in bulk also saves on transportation cost as well cuts down on environmental …show more content…
Consumer preferences determine to which products a store will sell or dedicate shelf space. If 3.2 beer is not selling, convenience stores will remove it from their shelves to free up shelf space for products that will sell. The result will not only affect convenience stores, but the consumer. Consumers will be adversely affected by limitations being placed on where they can purchase beer. If consumers care more about convenience, then they may not take the time to make an extra stop at a liquor store for beer. This will affect overall beer sales, which trickles down to the beer industry as a whole, lowering total overall profits.
Many people have said that allowing ‘big business’ to liquor will adversely affect the vibrant craft beer culture that has routed itself in Colorado. I believe that the exact opposite will happen. Allowing convenience and grocery stores to sell beer will give these craft brewers a larger market to which they may sell their product. If their product proves to be a popular one then the larger chain stores will be able to assist the craft brewer in receiving a larger destruction pool rather than limiting it to small mom and pop stores that in many cases do not have the excess funds to risk on a new