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POLL: Should Maryland Allow Alcohol Sales in Grocery Stores?

The proposed liquor store in Wegmans has sparked the debate.

 

The inside the new Columbia Wegmans has reignited the debate on whether wine, beer and liquor should be sold in Maryland grocery and convenience stores.

In an expansive article on Saturday, the Baltimore Sun examined how multiple grocery stores are trying to find ways around rules that generally ban chain grocery stores from selling wine, beer and liquor. (There are some exceptions, such as an Eastern Shore Giant location that has a license that has been grandfathered.)

Adam Borden, the president of Marylanders for Better Beer & Wine Laws, said the bans are antiquated.

“Our culture has evolved,” said Borden. “It used to be one where temperance and orderly tax collections were our most paramount concerns. Today, consumers are bridling with restrictions that were in place decades ago because they stifle greater selection and better pricing.”

In order to be within liquor license rules, the proposed liquor store for Wegmans would be 10 percent owned and managed on a day-to-day basis by Ralph Michael Smith, a lawyer who lives in Ellicott City.

IAD LLC would own the other 90 percent of the store. IAD is a Delaware holding company owned by Christopher O’Donnell, the husband of Colleen Wegman, the president of Wegmans. Although O’Donnell is connected to Wegmans through his wife, he is technically independent from the chain grocery store.

In the Sun article, Smith said that O’Donnell has a dozen or so other start-up ventures that he runs independently. He said nobody in Wegmans owns anything in those ventures and “I guess (people) aren’t used to couples having two high-powered careers,” according to the Sun.

At the liquor board hearing on May 1, local about Smith being a front for Wegmans.

Amran Pasha, who owns a gas station in Columbia, complained that if Smith gets a license, then other large retailers would emulate the process to get their own stores.

“They’re not allowed to have a liquor store, so they’ve figured out a way to do it,” said Pasha. “The next thing we have is Giant doing the same thing… that means the end of small business in Columbia.” 

At the hearing, only one Howard County resident came out in support of the proposal, Judy George of Laurel.

She said, “With the antiquated laws in Maryland, it’s really hard to find great wines and beers.”

She said she often goes to Corridor in Anne Arundel County to find particular wines she’s looking for, but would prefer to spend her money in Howard County. 

Eric Stein, owner of Decanter Fine Wines and Spirits in Hickory Ridge, said after the hearing, "The average person doesn't care that much about alcohol sales. But the people involved in the industry want others to follow the rules... If the public wants to change the rules, there should be an outcry to do so."

Editor's Note: The original story said Corridor was located in Prince George's County, in fact, it's in Anne Arundel County. The story has been corrected, thank you commenters.

What do you think? Should Maryland allow beer, wine and liquor sales at chain grocery stores?

MyBrandy May 10, 2012 at 07:28 pm
So there is a lot of confusion here! Is it state law or not? We have Shoppers in CP and Safeway in Burtonsville selling wine and beer. Both are chains.
BOH May 10, 2012 at 09:15 pm
They're not open on Sundays?
Frank in Elkridge May 11, 2012 at 02:05 pm
All of us former California residents find the Maryland laws on alcoholic beverage sales infuriating. In most every other state, including Virginia both supermarkets and liquor stores have flourishing beer, wine, and liquor sales. There is no shortage of liquor stores in states where supermarkets sell alcoholic beverages.
For the consumer, it's really a question of convenience and choice. Allowing supermarkets to sell legal alcoholic beverages shouldn't even be controversial. It should be a "no-brainer". Liquor stores will not go away, they will just be forced to be more competitive - provide better product, service, and prices to the consumer.
Andrew Metcalf (Editor) May 11, 2012 at 02:11 pm
Thank you for pointing this out, the story has been corrected and the error is noted in the editor's note at the bottom of the article.
John M. May 11, 2012 at 03:33 pm
Completely agree Frank, but I don't think that's the issue in Maryland. The excuses given for why alcohol sales should not be allowed in grocery stores are all smoke and mirrors. This reminds me very much of the same nonsense we had to put up with when the Maryland State Licensed beverage association and local distributors were trying to block wine shipments into Maryland (all those thirsty 12 years olds buying cases of Silver Oak and Screaming Eagle to drink at their boy scout and girl scout events).
As is so often the case in Maryland, this is all about money. Local distributors find it much easier to work and deal with small mom and pop stores, who have limited bargaining power and no real economic power. As the Sun article points out, the landscape would completely change if grocery store chains like Wegmans and Whole Foods entered the picture. The balance of power would shift dramatically. While that would likely result in a net benefit to the customer, I can see where it might hurt the bottom line of certain state distributors. So naturally they will try to stop it and the customer be damned.
Colleen May 11, 2012 at 06:52 pm
I've lived in OH and FL as well- both with different laws. The fact is, out of sight out of mind. If its not in the store, I'm not tempted to drink. I prefer it the way it is.
Annoyed123 May 13, 2012 at 04:42 pm
My understanding is that one store in each chain is allowed to sell beer and wine. But the Safeway at Briggs Cheney just moved that section out of the store to the Olney store. Seems they couldn't figure out how to handle security.
Alex Mitchell May 15, 2012 at 02:59 pm
I will point out that the numbers for this poll were substantially in favor of liquor sales in grocery stores for the first week--86% in favor, with 53% supporting the sale of beer, wine, AND spirits in grocery stores--with 627 total responses. Then a member of the union that represents the State Store employees of Pennsylvania's state-run "Wine and Spirits Shoppe" system circulated the presence of this poll via e-mail, resulting in an additional 300+ "no" votes in less than 24 hours!
BOH May 15, 2012 at 07:11 pm
Interesting. How did you find out about this? I tend to think unions can serve positive purposes in many cases, but for the life of me I can't figure out what that could be here. Also, it's beyond me why anyone thinks a state or local government has any business being the official dispensary for a consumer good to constituents, nor why a union has any business being involved in it.
Austin May 17, 2012 at 03:33 am
Not in lovely Baltimore County.
Mari May 17, 2012 at 05:55 am
Why not let them sell it? If you don't want it, don't buy it. Frankly, while I know that the liquor store being discussed has to be separate from Wegman's, I think if they were together, they could be really helpful in pairing the wines with cheese. I don't know why people are so afraid when there are so many other states that allow these sales. I don't even drink and think this is a silly, freedom-restricting law.
Stefan Arcane May 17, 2012 at 07:14 am
The above Poll has largely become invalid as a number of Union employees from the Pennsylvania Liquor Control Board have been passing it around. They would all be out of a job if Pennsylvania passed such measures so they've decided to skew the Poll in their favor.
Fran Coulson June 11, 2012 at 06:21 pm
They sell cigarettes in grocery stores, sell lottery tickets in grocery stores, sell mixers in grocery stores, so what's the big deal. Of course politics is the answer. I don't know what can be done to change this law, anyone have any constructive answers.
cville city July 25, 2012 at 12:22 am
Seems to me that many are not clear on the liquor laws at the Federal, State and County levels, nor are they clear on the 3 tier system that has led us out of prohibition. Without that collaboration, Prohibition might possibly still be in effect. Having been in the liquor business for the past 15 years, I have no problem allowing grocery stores to sell wine and beer. The problem is that you'll also be inviting chain liquor stores such as Corridor and Beltway's cousin company, total wines and more, to come into the state. They WILL put mom and pop stores out of business, no doubt. Grocery stores will not. Liquor stores have been bombarded by state alcohol law changes due solely to corridor and beltway the past few years and they are aiming squarely at your neighborhood businesses. Personally, I believe too many liquor stores set up shop and just sit around doing nothing and being completely unhelpful to customers. I do not operate that way and have spent many years building a successful liquor store tailored to my customers needs. If I do not have an item or answer, I WILL get it for them. Large corporations buy what is cheap and sell cheap, sometimes they buy direct from suppliers and eat everyone else for breakfast (ie kitchen sink wines at Beltway/corridor, Gallo wines bottled under Kirkland brand, crane lake bottled under crane lake brands). Selling wines with any sort of competence is extremely difficult, yet not an excuse.
BOH July 25, 2012 at 03:02 am
Thanks for that perspective, cville city. I think you make some interesting points. 100% honest question: in your opinion, what is it that makes fielding independent liquor stores profitable states that allow alcohol (even hard liquor) sales in grocery/convenience stores, but that would put MD indie stores out of business? Is it because the market's oversaturated with indie liquor stores, particularly the kind with apathetic owners/workers? If so, I could completely understand the notion that the myth of perfect market efficiency would drive the worthless stores under, but leave good ones standing. Market efficiency sometimes ignores concepts of low service quality, uninformed consumers, and unscrupulous wholesale transaction practices. But is that what you're saying would drive good stores out as well, or is there another issue at play?
cville city July 25, 2012 at 04:26 am
Boh, Complicated answer. Part of corridor's and Beltway's legal success against the state and the MSLBA resulted in quantity discounts being allowed by wholesalers and suppliers whereas, prior to this, a store bought what they thought they could sell in 30 days and pay for it in 30 days. For instance, Pernod Ricard ( absolut, kahlua, jameson, beefeater, malibu.etc. was on a top QD of 300 cases with a rebate system from the wholesaler last month. That's 45 grand in just a few products. Very few stores have that purchasing power. Stores that buy that have two choices: Discount the heck out of those items and move it out, or make a decent margin and sit on it longer. Now, multiply those quantity discounts across several thousand brands, and now independent stores are warehouses themselves. Stores that are selling for a buck or two over cost are thriving. Most don't buy Qd's and margins are too high and they will close up shop due to low volume sales, but someone else will give it a go because licenses are based on population, and someone will pay the 150k for the opportunity to own a liquor store in this state. Liquor control counties/states (moco) simply use the "controlling booze" aspect as an excuse to collect more revenue for the locale. People want everything cheap. It's killing our country, yet unlike groceries and clothing, booze is heavily taxed and regulated by the feds. If stores play the QD game, they will be fine, grocery stores or not.
cville city July 25, 2012 at 04:47 am
Grocery stores will sell popular wine and beer and perhaps spirits, cheap. In states that allow grocery store liquor sales, the successful independent stores focus on customer service, selection based on customer needs, and convenience for the neighborhood. I'd prefer not to stock certain brands because I believe them to be a poor product, and would be happy to let grocery stores buy them in bulk and sell them for no profit, but for now, I have to stock those brands and people expect to pay a certain price for them. Most of my customers are tired of big box stores in congested areas, and they are willing to pay a dollar or two more for that. That's where independent stores thrive. Now, if you need a nice dry sancerre to go with some shrimp and oysters tonight, have fun at Giant when they recommend a Sauternes (sweet) or look at you eight different ways when they have never heard of either. For your basic yellow tail 1.5L for 9 or 10 bucks, they are fine, since you know what you want and large companies think customer service means "self service" is better than anything our 18 year old kid can offer you. Heck, he might be on a computer screen in the wine section while physically sitting in India. To me, that's not America and it's all relative to the last untouched business climate in Maryland.
cville city July 25, 2012 at 05:33 am
I don't know that I've completely answered your question Boh, considering I've never worked in a state that predominantly allowed beer/wine sales in grocery stores throughout the state. California doesn't count if you ask me since a large part of the state is heavily rooted in vineyards and wineries. Moco (considered a "control county) sells spirits, wine and WARM beer only and my experience has been that their selection varies wildly, while they do issue Beer/Wine licenses to licensees. North Carolina and Virginia have ABC stores that sell nothing but spirits, yet beer is drive through. That is inconvenient. P.A has restrictive liquor laws and D.C is similar to Maryland due to such close proximity to each other. Many also forget that we have a separate sales tax rate on booze now. Had Annapolis gotten their way, your favorite bottle of 1.75L of spirits would have gone up by about 9 dollars per bottle. Add that to an already unfavorable small business climate in this state and many proprietors would be in trouble. We already have destination liquor stores in each county; no need for chains to move in. Grocery store booze is a convenience factor and prices won't necessarily be cheaper for the consumer. I can't say that there is any one factor that would make independent stores operating in a grocery/chain store climate successful or not.
William Wilson August 11, 2012 at 05:35 pm
I frequently visit the Miami/Fort Lauderdale , Florida area. There, Costco , Publix supermarkets and other large businesses have the ability to sell wine and liquor along with the many other small businesses that do so. The small businesses survive just as well as the big guys. The small businesses give competitive pricing of their goods. The small businesses in Maryland are not in favor of this kind of competition because they gauge for higher prices without competition. The people on these committees who come up with what we can, and can't have are out of touch with the people on the street. It's always to them. We never get a vote. Do they speak for us, or themselves? Supermarkets in France and all over Europe sell wine and liquor with no problems to smaller merchants, or children. Maryland needs to grow up!
cville city August 11, 2012 at 06:04 pm
Liquor store competition in Maryland is fierce. Census population also dictates the number of licenses allowed in each district, therefore, if one license is granted to a grocery store chain, they will all want licenses which over saturates the market. For those stores that are more expensive...good for them, as it obviously represents customers are willing to pay for convenience instead of shopping around for price. Liquor stores that are super competitive have very low margins and must sell in volume to stay in business, yet the state only allows stores in size up to 10k Sq.Ft, which many liquor stores don't even come close to in size. People are quick to criticize Maryland's liquor laws, yet fail to compare apples to apples when comparing to other states. How about South Carolina? Until a few years back, liquor could not be served in bars. Now liquor drinks are available, OUT OF MINIATURES! Utah still has bars that can only sell beer below 3.2% alc/weight. The larger issue here is consolidation of small business who pay their fair share of taxes and are bought out or closed due to large corporations (who find loopholes to avoid paying their fair share of taxes) and nearly monopolizing markets. Being Pro-Chain Liquor stores is to kick your small business owner neighbor in the teeth. The potential Wegman's Liquor store owner didn't even have the decency to show to the hearing. Great support of the community on his part.
H.R. Pufnstuf August 11, 2012 at 06:15 pm
Besides being generally clueless about ecomonics and competition, your comment contains a factual inaccuracy. The general manager of the potential Wegmans liquor store was present at every hearing. The 90% investor, who was just an investor and not involved in the day to day operations (who lives out of state, btw) did not show up unitl the final hearing. Honestly, it was a little rude and self-righteous of Howard County Government to expect this man to take time out of his busy schedule to come down and deal with a bunch of NIMBY liquor store owners who want to protect their government sponsored monopoly on liquor stores.
Btw, Perfect Pour was a leading critic of Wegmans liquors, and surprise of all surprises, Perfect Pour is now opening a second location.
tiptop August 11, 2012 at 07:21 pm
Why is Maryland over regulated on everything?
cville city August 11, 2012 at 07:44 pm
Perfect Pour is a good business, grown by a local business owner and moved to it's current location. If his wife, or son or business owner wants to open another store, great, then that's legal. They simply cannot have the same person on both licenses, a loophole. If I were a local liquor store owner near Wegman's, I would offer up my license for a hefty price...something some of those store owner's should have evaluated themselves. It's not unreasonable to ask that the 90% owner attend his own hearing. If he's too busy to manage his current obligations, why should he add more to his "busy" life by owning a liquor store. I stand corrected regarding his appearance. Everyone is hating on the MSLBA and the "good ol' boys" liquor club. Fact is...this is the way Maryland operates, and I find it noble that small business owners stick together whether they peddle booze or shoes. Walmart has bullied it's suppliers to the point of submission. Wegsman's and grocery stores would do the same and attempt to bypass wholesalers while eliminated 1000's of jobs all so they can sell products at or below cost and make up for the loss in their grocery stores. When you see corona 24pk loose bottles for $22.99...that retailer makes ONE DOLLAR, for a gross margin of .45%. While large stores can buy 100's of cases and make up for it in volume, you're local village center cannot. Gov't sponsored monopoly is crazy talk.
cville city August 11, 2012 at 07:57 pm
This ME, ME, ME mentality is b.s. Coupled with CHEAP CHEAP CHEAP...Watch how this sort of thinking applies with Healthcare. Heck, even Doctors aren't accepting health insurance anymore and are now cash only or a combination of both. Eventually, your broken leg will be serviced in a drive through by a Doctor who makes $1.00 in profit because he's cheaper than the guy down the street and the customer want's it cheap. How about that for regulation? Will you attack the American Medical Association with such abuse and vitriolic criticism just so you can save a buck or two? Please do, because it's already happening. Shop around, pony up the money and move on. No reason to attack the structure of the State Liquor laws when in all honesty, it barely inconveniences anyone. If Maryland had it's way with an increase in the alcohol tax, you're favorite $20 bottle of spirits would now be $29. You can thank the MSLBA for fighting such drastic tax increases and be happy it only went up 3% to a total 9% total sales tax. Don't look a gift horse in the mouth.
Hugh Douglas Marron October 12, 2012 at 03:03 am
I worked in LA in the late 60's and early 70's and could always run down to the local grocery store to get a six pack or a bottle of JD for a party and some chips. That was 40 years ago - would be nice to see Maryland join the 21st century and get Government out of my Bar.
Amarjit Singh October 21, 2012 at 03:38 pm
My name is Singh,if you notice in Maryland most of 60% liquor and bar store run by Asian ppl or us,i am in business in last 10 years,i believe if all grocery store sell beer wine or liquor is good for our business.
Cuz they make 40% or more in the business and we are in big competition and we not make 20% or less in this business. So i think Maryland state give license big chane,like walmart,Marsh,or big grocery store,so basically is one stop shoping. Then i hope we make a good business and work for a good margin of profits, ...............Amarjit Singh.
Amarjit Singh October 21, 2012 at 03:44 pm
I think state of Maryland give liquor license to all big Chan grocery store,so is one stop shopping,ppl go to grocery and they buy beer or wine whatever they need,they don't need sciond stop and park go to buy liquor or beer,
All other state like,New york,la,nj,va,or so many other state sell liquor or beer in 7/11, or any other small store then why in Maryland,we can't,
cville city October 21, 2012 at 04:16 pm
Singh, With the wholesaler quantity discounts, liquor stores can either buy the largest quantity deal they can and pass those savings on to customers at steep discounts and volume sales, or have a higher margin with slower sales. Ideally, each individual grocery store would get liquor trucks sent directly from the wholesalers to the stores, just as they do for all liquor stores now, however, I would be willing to bet that as soon as grocery stores can sell booze, they will petition to have wholesalers ship directly to grocery store warehouses who then self distribute to their own stores. Then the quantity discounts get larger and the grocery stores will buy, for instance, this months 300 case QD on Pernod ricard products (absolut, kahlua, beefeater, jameson, malibu). That's about 50 grand in a few products. Less than 40 liquor stores in the state can afford to spend that, but they win big when they sell those products for 3-15 dollars cheaper than the smaller competition. Grocery stores will be a position to be discounters of beer, wine and spirits, but likely they will buy so much at once, make their margins and will have killer profits. Item A. costs Giant $5 when they buy 500 cases. They sell it for $7. The same item at at 50 case deal costs the independent liquor store $6 and they sell it for $9 dollars. Giant has a 40% margin, but sells 500 cases in a month for a $12,000 profit. Mr. independent liquor store makes $1800 @ 50% margin over 2 months.
cville city October 21, 2012 at 04:32 pm
The positives to grocery stores selling booze? Volume value brands will be less expensive for the consumer who wants cheap booze cheap. Most existing grocery stores won't have the dedicated size and closed off space Wegman's provided and selection and service will be limited. Then the Sunday sales prohibition in certain counties will have to be evaluated as well as age restrictions that are in place that prohibit individuals under 21 from selling alcohol (different counties, different rules) at grocery store cash registers. A lot would have to change to allow grocery store sales.
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