Businesses split on push to allow full-strength beer in convenience stores, supermarkets

Photos

Mark Vierthaler

Two cases filled with so-called "weak" beer can be seen at the Spee-D Stop convenience store in Dodge City. Some locals are supporting recent efforts to make strong beer available at convenience stores and supermarkets, but liquor store owners have voiced opposition.

  

Yellow Pages

By ERIC SWANSON
Posted Feb 10, 2009 @ 12:15 PM
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   At least three times a day, customers enter the Spee-D Stop convenience store in search of full-strength beer.
    And each time, Speed-D stop owner Nageeb Alhaj has to direct those potential customers to a liquor store instead.
    Under Kansas law, gas stations, convenience stores and grocery stores cannot sell beer that is stronger than 3.2 alcohol by weight — so-called "weak beer." But that could change if lawmakers approve a bill allowing those businesses to sell most strong beer.
    Alhaj said he's getting tired of telling his customers that they need to go somewhere else to buy strong beer.
    "It gets old after a while, and we feel like we're losing business," he told the Globe on Monday. "If we're after the same thing that the liquor stores do, I think we'll be able to increase our sales at our business."

Pushing for change
    Off and on for the past 20 years, Kansas convenience store owners and grocery stores have tried to convince lawmakers that they should be allowed to sell strong beer, just like liquor stores.
    But the state's liquor store lobby has beaten back previous efforts to change the law, arguing that the change would put hundreds of locally owned stores out of business.
    When Congress repealed Prohibition in the 1930s, it also declared that "weak beer" — also known as a cereal malt beverage — was less intoxicating than the stronger stuff, according to a Sept. 12, 2005, article in Modern Brewery Age. But that decision created a legal loophole in Kansas, which didn't get around to repealing Prohibition until 1948.
    Under current law, only liquor stores can sell packaged beer, while grocery and convenience stores can sell packaged cereal malt beverages. The state regulates liquor sales, while state and local governments regulate CMB sales.
    Two bills pending in the Legislature — Senate Bill 76 and House Bill 2062 —would essentially kill 3.2 beer. Moreover, convenience stores, gas stations and grocery stores could apply for a license to sell stronger beer with a maximum alcohol content of 4 percent.
    Spee-D Stop owner Alhaj, who also owns the River Stop convenience store in south Dodge, said he favors changing the current system.
    "It doesn't make sense that the liquor stores sell the same percentage of liquor, and convenience stores sell like half of it,"  he said. "As a customer, if you want to buy a six-pack of beer and you're going to spend at least $6, you expect to have the same alcohol percentage on it."
    But the state's liquor store lobby contends that changing the law would benefit out-of-town companies, which typically own convenience and grocery stores, at the expense of locally owned businesses.
    "The 750 retail liquor stores in this state have made investments, relied upon and developed their businesses based upon this model," said R.E. "Tuck" Duncan, general counsel for the Kansas Wine and Spirits Wholesalers Association. "To change the law will potentially eliminate hundreds of locally owned businesses who contribute more to the state as a percentage of their profits than the out-of-state businesses. And that seems inherently unfair."
    Local liquor store owners acknowledge that changing the law could cut into their profits. But they say the change could also allow minors to purchase strong beer illegally.
    "That would be my largest concern," said Debbie Klinginsmith, owner of Comanche Beverage Outlet. "Because they have such a high turnover of employees — the convenience stores do — I think it would be a concern."
    Gary Konrade, who owns Mr. G's Liquor Store, said he does not object to convenience stores selling 3.2 beer, but he does not think they should be allowed to sell anything stronger.
    "If they get strong beer, the next thing they'll want is alcohol," he said. "That's the next bill they'll push for."
    Tom Palace, executive director of the Topeka-based Petroleum Marketers and Convenience Store Association of Kansas, was not immediately available for comment Monday afternoon. The organization's Web site said that if the law changes, beer retailers would pay the same licensing fees as liquor stores, but they would sell only beer — not wine or liquor.
    A spokeswoman for Love's Travel Stops and Country Stores, which has two stores in Dodge City, said the company would wait to see how the issue plays out in the Legislature before taking a position on it.
   
    Reach Eric Swanson at (620) 408-9917 or e-mail him at eric.swanson@dodgeglobe.com.
   

   At least three times a day, customers enter the Spee-D Stop convenience store in search of full-strength beer.
    And each time, Speed-D stop owner Nageeb Alhaj has to direct those potential customers to a liquor store instead.
    Under Kansas law, gas stations, convenience stores and grocery stores cannot sell beer that is stronger than 3.2 alcohol by weight — so-called "weak beer." But that could change if lawmakers approve a bill allowing those businesses to sell most strong beer.
    Alhaj said he's getting tired of telling his customers that they need to go somewhere else to buy strong beer.
    "It gets old after a while, and we feel like we're losing business," he told the Globe on Monday. "If we're after the same thing that the liquor stores do, I think we'll be able to increase our sales at our business."

Pushing for change
    Off and on for the past 20 years, Kansas convenience store owners and grocery stores have tried to convince lawmakers that they should be allowed to sell strong beer, just like liquor stores.
    But the state's liquor store lobby has beaten back previous efforts to change the law, arguing that the change would put hundreds of locally owned stores out of business.
    When Congress repealed Prohibition in the 1930s, it also declared that "weak beer" — also known as a cereal malt beverage — was less intoxicating than the stronger stuff, according to a Sept. 12, 2005, article in Modern Brewery Age. But that decision created a legal loophole in Kansas, which didn't get around to repealing Prohibition until 1948.
    Under current law, only liquor stores can sell packaged beer, while grocery and convenience stores can sell packaged cereal malt beverages. The state regulates liquor sales, while state and local governments regulate CMB sales.
    Two bills pending in the Legislature — Senate Bill 76 and House Bill 2062 —would essentially kill 3.2 beer. Moreover, convenience stores, gas stations and grocery stores could apply for a license to sell stronger beer with a maximum alcohol content of 4 percent.
    Spee-D Stop owner Alhaj, who also owns the River Stop convenience store in south Dodge, said he favors changing the current system.
    "It doesn't make sense that the liquor stores sell the same percentage of liquor, and convenience stores sell like half of it,"  he said. "As a customer, if you want to buy a six-pack of beer and you're going to spend at least $6, you expect to have the same alcohol percentage on it."
    But the state's liquor store lobby contends that changing the law would benefit out-of-town companies, which typically own convenience and grocery stores, at the expense of locally owned businesses.
    "The 750 retail liquor stores in this state have made investments, relied upon and developed their businesses based upon this model," said R.E. "Tuck" Duncan, general counsel for the Kansas Wine and Spirits Wholesalers Association. "To change the law will potentially eliminate hundreds of locally owned businesses who contribute more to the state as a percentage of their profits than the out-of-state businesses. And that seems inherently unfair."
    Local liquor store owners acknowledge that changing the law could cut into their profits. But they say the change could also allow minors to purchase strong beer illegally.
    "That would be my largest concern," said Debbie Klinginsmith, owner of Comanche Beverage Outlet. "Because they have such a high turnover of employees — the convenience stores do — I think it would be a concern."
    Gary Konrade, who owns Mr. G's Liquor Store, said he does not object to convenience stores selling 3.2 beer, but he does not think they should be allowed to sell anything stronger.
    "If they get strong beer, the next thing they'll want is alcohol," he said. "That's the next bill they'll push for."
    Tom Palace, executive director of the Topeka-based Petroleum Marketers and Convenience Store Association of Kansas, was not immediately available for comment Monday afternoon. The organization's Web site said that if the law changes, beer retailers would pay the same licensing fees as liquor stores, but they would sell only beer — not wine or liquor.
    A spokeswoman for Love's Travel Stops and Country Stores, which has two stores in Dodge City, said the company would wait to see how the issue plays out in the Legislature before taking a position on it.
   
    Reach Eric Swanson at (620) 408-9917 or e-mail him at eric.swanson@dodgeglobe.com.
   

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