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MINNESOTA z4 Sew .4 INCORPORATED t4 s * An organization composed of the municipally-operated Dispensaries of Minnesota Agenda Item: Reports-4d PRESIDENT Status: Informational March 27, 1984 Bob McGuire Fridley,MN 55421 VICE-PRESIDENT Dear Manager, Arville Thompson Detroit Lakes,MN 56501 At the risk of "crying wolf" I must inform you that the WINE IN SECRETARY GROCERY STORE issue is a serious threat in this short legislative Bill Zawislak session. The proponents of this issue, according to our sources on Anoka,MN 55303- Capitol Hill , are going to by-pass the formal bill and legislative TREASURER committee process and attempt to amend the concept to another liquor or James VanHyfte tax bill , perhaps even in the conference committee negotiations on the Marshall.MN 56258 last day of the legislative session. We must not let this happen! Over the next two weeks inform your State Senators and State Representatives DIRECTORS of the highly controversial nature of this issue to your cities and Bill Weinknecht your strong feelings. Remember, should this idea become law, strong beer Kasson,MN 559" will sooner or later also be in grocery stores , convenience stores and Bonnie Shea gas station superettes . Apple Valley,MN 55124 Dick Risacher Slayton,MN 56172 Strong arguments include the following; Bob McGuire Fridley,MN 65421 1 . State-wide public hearings gave this issue a strong look two Z ItPeterson years ago and it met thundering defeat; ina,MN55435 2. Proper public policy does not support a' 300%-500% increase in the James VanHyhe Marshall,MN 56258 number of outlets for off-sale wine in our state. Distribution Wm.Baresh studies from across the nation clearly demonstrate that as the Moose L-ke,MN55767 number of outlets increase, CONTROL DECREASES; Art Betts 3. Studies from states that now have wine in grocery stores clearly Fairmont,Thompson 1 show that the teenage employees of convenience stores do not Arville Thompson • Detroit Lakes,MN 56501 strongly resist underage sales. Indeed, those states have Bill Zawislak high DWI involvement among young people and are the states Anoka,MN 55303 seeking to raise minimum drinking ages ; Dale Doerr. 4. Only 4 states that allow wine -in grocery stores have resisted Spring Lake Park,MN 55432 Lyndon Griffin efforts to also permit spirits in grocery stores.; Exec.Sacy. 5. Tax revenues would not increase since our wine taxes in Minnesota are among the lowest in the nation. Thus , replacing beer or spirit sales with wine sales would not benefit state tax coffers .. . . . . unless, of course , overall consumption were to expand dramatically. Such an expansion would be in marked contrast to present public policy. Furthermore, the destruction of municipal liquor stores would place a severe strain on local tax budgets; 6. Wine in Grocery Stores- would mainly benefit the large Chain Stores who account for about 70% of sales while driving hundreds of small municipal and private retailers out of business with -a net loss of jobs to Minnesotans ; and 7. :Consumers would suffer a sharp decline im the number of wines' available and most wines wi1L1 -sharply appreciate in price to cover, sales declines .. . especially higher quality wines which are now "underwritten" by the popular. •brands that would be.used- as "loss leaders" in the. grocery advertisements-. Urgently Yours, Bob McGuire,