HomeMy WebLinkAboutRES 87-015 RESOLUTION AGAINST LEGISLATIVE PASSAGE TO ALLOW THE SALE OF WINE IN GROCERY STORES Meeting Sheet
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102342
Box: 23
Folder: RES 1987
Document: RES 87-015 RESOLUTION AGAINST LEGISLATIVE PASSAGE
TO ALLOW THE SALE OF WINE IN GROCERY STORES
0
MAJOR POINTS
I . CONTROL OF SALE OF WINE
• I I . I MAG E OF WINE AS A FOOD
III . PROFITABILITY OF MUNICIPAL OPERATIONS
•
I. CONTROL OF SALE OF WINE
• Presently wine is sold in a controlled environment in
off-sale liquor stores.
° Allowing the sale of wine in grocery stores removes the
special "controlled" status from its sale and gives
purchasers the message that the purchase of wine is no
more significant than the purchase of food items.
(Cartoon )
° Minors are, not allowed in liquor stores unless with a
parent or legal guardian.
° Minors are normal customers of grocery stores. Giving
minors increased access to wine (especially wine
• coolers ) would likely result in more attempts to
purchase wine and more attempts to steal wine.
° Clerks in liquor stores sell alcoholic products and are
trained to check I . D. ' s and know this is the single most
important part of their job.
Clerks in grocery stores may not have the intensified
training and continued monitoring by store supervisors
as is a requirement in our stores.
° Our Chief of Police states that presently there is not
• much of a problem with juveniles attempting to purchase
3 . 2 beer in grocery stores because teenagers want
stronger alcoholic beverages if they attempt to
purchase .
He feels that the sale of wine in grocery stores would
lead to many more attempts by minors to purchase at gro-
cery stores and could cause a shoplifting problem that
is not experienced by liquor stores where minors are not
allowed. More attempts to purchase and to shoplift
would result in increased police surveilance costs .
° Wine, especially wine coolers, is heavily advertised and
portrayed as a beach and party drink and, therefore,
• sought by minors.
° Wine can have an alcohol . content of up to 20% and table
wine commonly has an alcohol content of 10-13%. This is
considerably higher than 3. 2 beer and even strong beer.
° Because of the higher alcohol content and because of its
advertising, wine sales by grocery stores would likely
cause juveniles to turn to grocery stores as a source
for their alcoholic beverages .
•
II . IMAGE OF WINE AS A FOOD
° One of the authors of H.F. 1342 told me that the prin-
cipal reason for this bill was that women wanted to
purchase wine with. their food and felt uncomfortable
going into a liquor store.
° Putting wine in grocery stores would make its access
easier for the food buyer and also would give everyone a
message that wine is a food. This message is false.
Wine is an alcoholic product just like strong beer or
whiskey. A 5-ounce glass of wine is equivalent to a can
of beer or to a mixed drink. (Chart )
•
III . PROFITABILITY OF MUNICIPAL OPERATIONS
• The City of Coon Rapids has operated municipal off-sale
stores for over 30 yers and has greatly benefited from
the transfer of profits from the stores to its General
Fund.
In 1986 , the sale of wine accounted for 16% of our total
sales of $3 , 178 ,000 .
° Sale of wine accounted for 23. 4% of the total gross pro-
fit of $534 , 000 .
° More importantly, sale of wine accounted for 67. 6% of
our net income of $78, 446. $53,000 of this net income
was generated by the sale of wine. (Chart )
•
The Municipal Liquor Stores Association has distributed
a fact sheet which cites studies that indicate in market
where, grocery stores can sell wine, they average nearly
70% of all wine sales in the market place.
° Passage of this bill would severely affect the profita-
bility of our stores .
° The State Legislature has severely restricted the abi-
lity of local governments to find alternative revenue
sources to the regressive property tax.
° This .bill would take away one of local governments
• remaining non-tax revenue sources and add yet another
burden to property taxes for our citizens .
deer and Wine
in Grocery Stores
The Implications
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WINE
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1986 - City of Coon Rapids of Minnesota
Wine Sales Compared to Total Sales
Wine 16 . 0 Z Wine 23 . 4 Z Wine 67 . 6 X
$508, 480
$12S, 000
$53, 808
A# Other Sales A# Other Sees A# Other Safes
Total Sales Gross Profit Net Profit