Has wine in Colorado’s grocery stores gone too far?

A year after the introduction of wine to grocery and convenience stores in Colorado, the implementation is starting to run into some challenges.

At the March 12 meeting of the Avon Liquor Licensing Authority, the board members stalled an application to expand the permanent presence of wine in the Avon City Market to allow town staff to further examine Colorado’s regulations of alcohol in grocery stores.

Colorado Proposition 125, permitting the sale of wine and fermented malt liquors in grocery and convenience stores in Colorado, passed on Nov. 8, 2022, with just under 52% of voters in favor. The proposition meant that any premises already licensed to sell fermented malt liquors, like beer, were also automatically licensed to sell wine beginning on March 1, 2023.

Representatives of the Avon City Market came to the Avon Liquor Licensing Authority on Jan. 24, 2023 to ask for a modification of the premises on which they were allowed to display alcohol, which resulted in the conversion of the wall of shelves facing the produce section from holding bread to holding wine.

Though the request was approved by the authority, some board members raised concerns at the time about the display’s proximity to the entrance of the Avon City Market, as minors and potential thieves would not need to pass by City Market employees or the checkout area to access and abscond with alcohol. During the Jan. 24, 2023 meeting, King Soopers representatives said the area would be monitored by cameras. 

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At the March 12 meeting of the Avon Liquor Licensing Authority, which holds the same seven members as the Avon Town Council, representatives of King Soopers, the larger conglomerate that includes the Avon City Market, submitted a modification of premises application to enlarge the areas of the store in which wine can be displayed.

The request was to increase the areas approved for the permanent display of liquor in the store from 110 linear feet to 146 linear feet, adding 36 linear feet of display along the aisle adjacent to the wall that currently holds wine.

The application for expansion comes following customer requests for a larger assortment of wine options, including boxed wine, sparkling wine, and local Colorado and gifting options, said Allie Brusilovsky, adult beverage specialist for the King Soopers City Market division.

Temporary displays

Although at the Jan. 24, 2023 meeting, an enlargement of the permanent display area for alcohol at the Avon City Market was approved, no mention was made of plans to place temporary displays of alcohol around the store. Following the March 1, 2023 introduction of wine into grocery stores, however, legal temporary displays did pop up throughout the Avon City Market, including wine in the flower case and in shopping aisle end caps.

The presence of liquor in grocery stores in Colorado is moderated by few rules. The guiding principles come from a bulletin released by the Liquor & Tobacco Specialized Business Group of the Colorado Board of Revenue on Dec. 30, 2022. The suggestions laid out in the bulletin are not legally binding.

Included in the bulletin are guidelines governing temporary displays of alcohol.

“Temporary displays do not materially or substantially alter the licensed premises, therefore, do not need prior approval,” the bulletin reads. “Temporary displays could be end caps for a short period of time or temporary displays within the licensed premises for a minimal period of time.”

The main limitations placed by the bulletin on temporary displays are connected to the location of alcohol. 

“Temporary displays should not be placed in candy or soda isles (sic) or near licensed premises entries and exits to prevent minor access to alcohol products,” it reads.

The concept of a temporary display is not defined well by statute, said Eric Heil, Avon town manager, with no amount of time attached to limit the longevity of the display.

“I believe that’s a loophole that allows display everywhere, all the time,” Heil said.

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Due to the loophole, Avon town staff recommended including a condition within the premise modification approval limiting temporary displays to within the approved area of permanent display.

“The temporary (display) helps, just like you would with any other grocery items, promote items that are a better value, that could tie in with your meal, that are…a convenience,” Brusilovsky said.

Several board members took issue with the temporary displays, which allow for wine to be placed throughout the store without requiring authority approval.

“I think that these temporary displays do change the basic character of the premises,” said Tamra Underwood, board vice chair.

“It seems to me that there are probably some folks in our community that find that challenging for them to deal with if they are trying to avoid alcohol,” said Amy Phillips, board chair.

City Market, not just in Avon but broadly, has not heard any complaints around that, Brusilovsky said.

Does the wine wall comply?

Beyond temporary displays, board members and members of the public questioned whether the Avon City Market was adhering to the outlined permanent area of display approved during the Jan. 24 meeting. The wine wall in the produce section is meant to start at the far end of City Market and run for 44 feet, ending 22 feet before the shelf ends to keep the alcohol away from the entrance of the store.

Underwood questioned whether the diagram presented to council on March 12 was accurate in regard to current use.

“I don’t know that we should approve a diagram that is not probably in compliance with the use right now,” Underwood said.

In public comment, Avon resident Tim McMahon noted that the wine wall display by the produce section is located in close proximity to the entrance door, meaning potential thieves would not need to pass a City Market employee to walk away with wine.

Wine theft in the Avon City Market is “very minimal,” Brusilovsky said, below industry standards.

Board member Chico Thuon seconded McMahon’s statement, and expressed doubt that the wine theft rate was as low as Brusilovsky claimed, asking for more information.

As a local licensing authority, Avon has equal ability with the state to enforce compliance with liquor laws. If a retailer is suspected to be in violation of state liquor laws, a hearing would be held with the Avon Liquor Licensing Authority, with the possibility of levying fines and/or a license suspension.

During the meeting, Underwood and board member Rich Carroll called for the town attorney, Nina Williams, to look further into the temporary display concept.

To give town staff time to look into the question of temporary displays, the application will be continued to the April 9 Avon Liquor Licensing Authority meeting.