Battle over wine sales in supermarkets
by Jesse Poppe
For as long as Senator Linda Sheid (DFL - Brooklyn Park) can remember, shopping for the week’s groceries always consisted of two trips. After purchasing a tenderloin dinner for company that was coming over, she remembered how well a tangy Gallo wine would accompany the meal and drove even further from home to buy it from the liquor store.
“This was always such an inconvenience; making two stops when one would make much more sense.� Sheid said. “Of course, I’d always buy more than just one bottle so I wouldn’t have to make the trip again that month.�
This routine is familiar to many in the state, where archaic alcohol laws have limited wine sales to liquor stores since the times just following Prohibition. If a current bill passes the Minnesota Legislature, however, these historical laws may be just that, affecting not only consumers but the profit margins of both liquor stores and supermarkets as well.
This bill was introduced to the Senate by Sheid and has bipartisan support. The bill has a partner in the House, and would allow supermarket areas spanning at least 8,000 square feet to sell wine in their isles.
“We want to allow consumers to make both their dinner and wine decisions in the same store,� said Sheid. “33 other states, including Wisconsin, already have similar laws, but since I’ve started carrying this bill in 1985 even beer wholesalers have opposed it.�
An age old debate
The subject of expanding wine and other alcohol sales to commercial areas other than liquor stores is not a new one. Sheid said that the Minnesota Legislature has been rejecting attempts to change the law since the 1970s, and opponents of this year’s measure say it will once again fail to garner enough support.
Heavy opposition of the bill has come from liquor stores, who are worried about losing sales in the competition that would be encouraged by letting grocery stores into the market. General manger Steve Wilk at Surdyk’s Liquor Store, one of the largest liquor stores in the Midwest that also allows customers to purchase their wine online, said that he expects this bill to die fairly quickly.
“I think the legislature has done its job in that past and I hope they stand up to this type of law again,� Wilk said. “If (the bill) stands alone and doesn’t get tagged to something else, our lobbyists tell us that it won’t pass.�
Wilk argued that increasing competition by including supermarkets is bad for business, and thinks that local liquor stores in particular will experience the most problems.
“Most of the constituents for opposing lawmakers are rural and municipal stores, who stand to lose the most money from this law,� he said.
Sheid acknowledged the clout that those supporters represent. “The law won’t likely change until municipal stores get on board,� she said.
Proponents of the bill, specifically the Minnesota Grocers Association, claim that competition will be healthy for consumers who can shop around for the best prices on a product. In addition, it would be much more convenient for customers who prefer to buy all of their goods in one place.
“We’ve heard from so many customers who want an isle in grocery stores near the cheese and meat section devoted to wine,� said Jaime Pfuhl, executive director of the Minnesota Grocers Association. “Minnesotans pay more for wine than most of the country because of these restricted licenses.�
Pfuhl said the bill is lenient because it limits supermarket sales to wine and still allows liquor stores to control beer and spirit sales. “Grocery stores just want to be a small part of a very large market,� she said.
Age restrictions and current limitations
One of the main concerns that opponents of the bill stress is that grocery stores are unfit to combat underage sales and purchases of alcoholic products.
“Liquor stores represent a controlled environment where store policy requires clerks to check all ID’s,� Wilk said. “How will supermarkets manage this when even the cashiers aren’t legally adults?�
Pfuhl argues that most stores are already well equipped to handle age-restricted products.
“Many grocers sell cigarettes and adult related material,� she said. “Our registers automatically lock when these types of products are scanned and someone of age must come over to make the sale.�
Sheid said that presenting the danger of underage buyers is a red herring issue. “There is no law that exists currently which requires liquor stores to check all ID’s,� she said. “Our law would include this restriction.�
While most advocates seem to argue that customer satisfaction is the main issue at stake, Wilk argued that current regulations already allow for grocery stores to own liquor stores.
“The convenience argument really bothers me,� Wilk said. “The current law says that a supermarket can run a liquor store as long as there are separate entrances and a wall separating the two entities. They just want this law so they don’t have to spend money.�
Pfuhl pointed out that it’s not that simple. “Supermarkets can’t always afford to run two stores,� she said. “Although it look like that’s their only option again this year.�
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Analysis:
This story, while interesting and informative, was difficult to report based on the lack of success of similar bills in the past. I found it on a list of interesting bills on the Minnesota Legislature website while researching for a previous story. It especially caught my eye because I am from Wisconsin, and wine in supermarkets is very common in my hometown.
This is one of those bills that gets dragged out every time and consistently gets voted down. There were, however, strong opinions on both sides of the bill, which made it entertaining to report. When interviewing people, I used comments from previous interviews to gain a broader view of the subject, especially when the two comments differed. In addition, I had specific points to ask about going into to the reporting process, such as declining sales for liquor stores and concern for underage sales, but gained other angles from my sources, such as municipal stores and separate entrances for liquor stores next to supermarkets.
The main challenge for this story was getting a hold of the executive director for the Minnesota Grocers Association, Jaime Pfuhl. I had tried to contact her for sometime, but only managed to get her on the phone just days before my deadline. I was glad to finally get her comments, however, as they really rounded out the story and gave a voice for the countless supermarkets in the state.
If I were to employ a more multimedia approach to this story, I could get pictures of both liquor store and supermarkets, as well as the manager at Surdyk's, Steve Wilk, at his store. In addition, I could have recorded parts of my conversation with Sen. Sheid, who was very candid with her comments. I don't believe any of these things would raise any ethical concerns, and think that the addition of these forms of reporting would only help enhance the ability of the story to convey the facts to the reader.