Beer at the Grocery Store - Its About Time

I have lived in New York, New Jersey, Kansas, Illinois, Kentucky, South Carolina, Florida and the United Kingdom. I have shopped on numerous occasions in many other states. With the possible exception of Pennsylvania there are few states with alcohol control laws as incomprehensible as those in the Garden State. One example is the manner in which New Jersey regulates microbreweries and brew pubs. The present laws prohibit having more than one brewery under common ownership. Consequently, the successful Triumph Brewery of Princeton had to locate its second brew-pub across the river in New Hope, Pennsylvania instead of Lambertville, New Brunswick or Red Bank. The laws for licensing for a micro-distillery are well nigh incomprehensible. Last but not least there is the whole morass of laws regarding the obtaining a permit to sell alcoholic beverages. One such component of these laws prohibits a person (or corporation which is a "legal" person for purposes of the law) from holding more than two permits statewide. In effect this allows only two stores in a Grocery chain to sell beer or wine. Grocers have sought to have this law overturned for decades. Their self interest aside such a change would benefit the consumer and the environment.

The present method of liquor distribution in our state involves chosen "distributors" who have "territories" and are the only ones that can legally buy from a Winery/Brewery/Distillery they then peddle their wares to retail outlets. This system limits the availability of some brands in some areas. Some distributors choose to flex their muscles and force retailers to sell certain brands at the expense of others. This can be done by various means such as by threatening to cut a retailers allocation of a brand that sells well if they do not buy a quota of slower selling brands. Other more subtle interference may involve product placement and in store promotions or declining to carry smaller producer's products without incentives. The current system limiting the number of outlets a permit holder can own reinforces the bargaining disparity between retailers and distributors by keeping retailers small. A chain of Grocery outlets could use its purchasing power to buy in bulk and pass the savings along - as happens outside the Garden State.

The distributors are not happy with this proposal, small surprise, they like the status quo, and they have enlisted the help of the retailers by warning of doom and gloom. The mom and pop liquor stores, the story goes, will be phased out if you allow the sale of beer and wine at grocery outlets. The analogy they point to is the alleged elimination of the mom and pop hardware stores where a Home Depot or Lowes has made an appearance. Now it does not take a rocket scientist to know that the level of service that a small local store can provide far exceeds what the Big Box stores have on offer. Successful local business owners have adapted emhasized personal service and are generally none the worse for appearance of their super-sized competition. Small liquor stores will continue to operate as they always have by providing exemplary personal service (including familiarity with their products and customers), readily accessible stock, short lines and wider varieties of brewed, fermented and distilled products. They can continue to special order products for their customers, deliver kegs and ice and differentiate themselves from a chain grocers at many turns. One thing the mom and pops may see is better service from their distributors who will continue to have a vested interest in having their retailers succeed.

As a consumer we will see lower prices, more convenience (less separate errands) and perhaps some more respectful treatment of beer. Beer being sold as a food accompaniment and not as an adornment for young lithe models. Imagine if you will someone selling beer without a cut-out of a bikini clad model. Beer and food pairings coming to the fore and included in store recommended recipes. Beer is, after all, just another food product why not treat it like one?

If you are wondering how this will work, just visit the Shop Rite in Middletown or our local whole Foods. Some Grocer's, like Trader Joe's, have their own craft beers bottled on their label. Imagine being able to swing by Costco and buy your ribs, veggies and salads as well as beer and wine in one stop. Less driving, less pollution less precious leisure time spent shopping.