For those seeking to buy beer and wine in local grocery and retail outlets, the anticipated changes might not happen just yet.
A continual effort to allow more retailers to offer alcoholic beverages seems to have hit another setback. Two significant Senate Democrats have indicated that a Senate bill is unlikely to progress, while a corresponding House measure is facing significant resistance rooted in concerns for small business owners.
“I don’t foresee us tackling this issue in any meaningful way this year,” Senate President Bill Ferguson (D-Baltimore City) remarked to reporters on Tuesday. “However, I believe that in the next term, we’ll need to find some kind of compromise.”
He expressed doubt that such a compromise can be reached within the next six weeks of the current session, but mentioned that “in the upcoming term, there will likely be a broader discussion about how to manage this issue in a fair manner, as we recognize that convenience is a priority for Marylanders.”
Cailey Locklair, president of the Maryland Retailers Alliance, termed Ferguson’s comments “unfortunate.”
“Independent studies indicate that Maryland could see an influx of $75 million in new revenue. This would not entail new taxes or cuts, but rather, a solution that would enrich communities, generate jobs, and stabilize neighborhoods by attracting new businesses,” Locklair explained.
The Maryland Retailers Alliance is a member of the Consumer Freedom Coalition, which supports the initiative to expand the sale of beer and wine. They have even launched a mail campaign that targets Ferguson, alongside commissioning a study from the University of Baltimore to investigate the potential impacts of expanded alcohol sales in Maryland.
Despite the challenges, supporters gathered in Annapolis on Wednesday, advocating for the passage of House Bill 1303, which is currently being reviewed by the House Economic Matters Committee. A related Senate Bill 75 was discussed last month. Although the two bills share similarities, they are not identical.
Both bills propose to allow grocery stores and large wholesale outlets to sell beer and wine. The House bill also extends this option to convenience stores and pharmacies that meet specified size criteria.
“Consumers should have the freedom to purchase products from whichever store they choose,” stated Del. Marlon Amprey (D-Baltimore City), who is sponsoring the House bill.
Neither bill introduces new licenses; rather, it permits existing license holders to transfer their licenses.
Amprey emphasized that his proposal would not “invalidate or undermine” current licenses. “We are not creating an environment of heightened competition. This is simply a modification of ownership,” he noted.
The Senate bill, put forth by Sen. Antonio Hayes (D-Beltimore City), seems likely to remain stalled in committee. A similar proposal from the previous year was ultimately withdrawn before a vote could be held in the Senate Finance Committee.
Sen. Pamela Beidle (D-Anne Arundel), chair of the Finance Committee, expressed last fall that if the bill returned this year, it would likely face similar challenges. She indicated on Friday that she does not anticipate any significant shifts in the committee’s stance.
“I still sense substantial concern regarding the small, family-owned businesses we have heard from extensively. This is a complex issue to navigate,” Beidle noted. “While convenience for consumers is important, so too is our commitment to supporting small businesses and fostering a healthy business environment.”
Presently, Maryland stands among only four states—including Delaware, Alaska, and Rhode Island—that do not permit grocery and retail outlets to sell alcoholic beverages. Restrictions in Maryland have remained in place for approximately 50 years. Some establishments actively sold liquor at that time, and today, around 30 nontraditional businesses hold the authority to sell alcohol. This includes various grocery and convenience stores, along with pharmacies.
Surveys funded by supporters indicate strong public backing for expanded sales in Maryland, with four out of five residents expressing a desire to see beer and wine available in grocery stores. The convenience of one-stop shopping is a major driver behind this support.
Despite the backing, the bills face a united front of opposition from a powerful coalition of alcohol wholesalers, distributors, and retail companies.
Similar to Beidle, many lawmakers are apprehensive about the repercussions for small business owners. “We risk jeopardizing established family-owned businesses that have worked hard to build their enterprises,” remarked Del. April Rose (R-Carroll) during the Economic Matters Committee hearing on Wednesday. “Making such changes poses significant challenges for these owners.”
Many reference Colorado’s experience, where grocery stores were allowed to sell beer, wine, and spirits nine years ago. However, to do this, grocery stores had to purchase existing licenses from nearby establishments.
By the year 2023, numerous grocery stores reported sales declines of up to 15%, along with a 33% drop in employment. In April, Gov. Jared Polis (D) signed a bill that prohibited grocery stores from acquiring further licenses from smaller establishments.
Maryland advocates assert that permitting grocery and retail outlets to sell alcohol will not erode small business viability.
The University of Baltimore study, supported by the bill’s advocates, highlighted the sales and job losses that occurred in Colorado but posited that the effects in Maryland “might be overestimated, suggesting that businesses here could be more resilient.”
Jack Milani, owner of Monaghan’s Pub in western Baltimore County and a legislative co-chair of the Maryland Licensed Beverage Association, expressed skepticism regarding the study, having not yet reviewed it.
“I’m a pragmatic individual. I often hear conflicting experiences from people in other states,” Milani commented, reflecting on his doubts. “Studies can yield varied results based on methodology, so I tend to trust my own connections over statistics.”
Lawmakers such as Beidle, who will retire after this term, remain unconvinced as well. “The impact will extend beyond small businesses; we could adversely affect local breweries and wineries, which are not easily replaced with grocery store offerings,” Beidle warned. “If they experience diminished sales, production could slow down or cease altogether.”
Even if the proposal falters once again this year, it is likely to surface again in the future.
“We will keep advocating for this cause,” Beidle affirmed. “It’s not going to disappear.”
Locklair indicated that her organization is prepared for a sustained push for expansion. “The conversation surrounding this issue will persist. Each year, support for our cause gains momentum in Maryland,” she remarked.
“People are looking for better prices, convenience, and access to grocery stores in their neighborhoods. Many are starting to recognize this as an opportunity to bring new retail options into their communities,” Locklair concluded. “This goal is essential, and we remain dedicated to pursuing it.”
