CC RES 00-089 A RESOLUTION OPPOSING THE CONCEPT OF ALLOWING FURTHER PROLIFERATION OF LIQUOR SALES FROM DISPENSARIES OTHER THAN DULY AUTHORIZED OFF -SALE LIQUOR STORES

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MMBA Minnesota Municipal Beverage Association M�.tp1EWTA MUNICIPAL INCORPORATED 15C GE ASSOCIATION An organization composed of the municipally-operated dispensaries of Minnesota OFFICERS Position Against Allowing Grocery (General Food) PRESIDENT Candice Woods Stores To Sell Wine Litchfield VICE PRESIDENT Steve Olson Thief River Falls BACKGROUND SECRETARY/ TREASURER In Minnesota, wine intended for consumption off the licensed premises(off-sale) may Bob Leslie only be sold by an Exclusive Liquor Store. The proposal would allow wine to be sold in Brandon grocery stores. DIRECTORS POSITION DIRECTOR-AT-LARGE Scott Olson MMBA is opposed to this legislation due to its negative affect on preventing drunk driving Park Rapids and underage alcohol sales and consumption. In addition this legislation would have a DIRECTOR-AT-ds significantly detrimental economic impact on current off-sale retailers. Candice woods 9 Y p Litchfield DISTRICT 1 REASONS Mary Ehler Spring Grove 1) This legislation would significantly increase the number of off-sale establishments DISTRICT 2 allowed to sell wine (alcohol)—a controlled substance. This increase would put a adke large economic and personnel burden on regulatory bodies. DI ICT 3 Sally Larson 2) These establishments would be allowed to sell all types of wine products including Herman wine coolers, fortified wine, sweet"pop"wine and jug wine—products most strongly DISTRICT 4 desired by underage individuals. Steve Olson Thief River Falls DISTRICTS 3) The minimum age to purchase alcohol in Minnesota is 21 years old. The majority of Tom Byrnes current off-sale retailers do not allow persons under 21 to enter their facility to Silver Bay purchase any items, unless accompanied by an adult. Common industry practice DISTRICT 6 allows individuals under 21 years of age to enter and purchase products in a grocery Gary Buysse store including cigarettes and lottery tickets.This customer base would make it Delano difficult to ensure consistent legal sale of beverage alcohol. Mike Larson St.Anthony Wayne Howe 4) The economic impact to current off-sale retailers would be devastating. Current off- Rogers sale retailers are statutorily limited to the types of items they can sell. Grocery stores DISTRICT 7 are not limited and will be able to simply utilize wine as a new and significant profit Bob Leslie center to complement their existing inventory. Current off-sale retailers will not be Brandon able to compete. Paul Kaspszak 5) This legislation opens the door for the elimination of 3.2% beer in Minnesota. (3.2 Executive Director beer contains not less than one-half of one percent alcohol by volume nor more than Tom Ryman 3.2 percent alcohol by weight). Financial Secretary Minnesota law allows grocery stores, gas stations, convenience stores and wherever Minneapoliss.,MMN 55432 Box beer is sold to sell 3.2 beer. Due to the same regulatory issues Concerning regulation N 612-572-0222 of alcohol and wine, "Strong" Beer(over 3.2%) can only be sold in exclusive liquor 1-800-848.4912 Ext.3925 stores. If wine can be sold in grocery stores,there will be little to prevent them from 10 .612-572.8163 eventually selling strong beer. Since beer accounts for approximately 60% of off-sale revenue, most, if not all, small and medium sized off-sale retail operations wouyt be www municipalbev.com forced out of business and the alcohol retail distribution system in Minnesota would be dramatically altered forever.