This Is How Wine Retailers Live...and Die

Colorado wine retailers blame grocery stores, but it's about much more

A recent article outlining the demise of “dozens” of Colorado independent liquor stores in the wake of wine sales being allowed in grocery stores is somewhat deceptive. However, what is clear is that when faced with heightened competition or even a decline in alcohol sales that threatens independent alcohol retailers, there are in fact actions that can and should be taken to respond to and mitigate the impact on the stores.

First, the recent article in the Denver Gazette came with a screaming headline:

”Dozens of liquor shops shuttered after voters OK wine sales in grocery stores; hundreds more expected”

How bad was the impact of Proposition 125 which allowed beer and wine into grocery stores? Well, it takes a full 15 paragraphs into the article before we learn the number of independent Colorado liquor stores that have closed since the passage of the 2022 Proposition is 31. This does qualify as “dozens” if you define that word in the most limited and minimalist way possible.

Nevertheless, the Denver Gazette looks at these 31 closings since 2022 and describes “a cutthroat industry that in a short timeframe has turned into a bloody and apparently one-sided brawl.” That’s editorializing. But this isn’t that important.