The bill was introduced yesterday (Tuesday, 5/2), will be considered by the House Finance Committee this morning. It would let independent liquor stores own as many as nine retail licenses over the next decade, while current law puts the limit at four.
It’s being pitched as a necessary response to last year’s measure that will allow grocery and big-box chains, including Safeway and Target, to own as many as 20 liquor licenses over the next 20 years and an unlimited number after that.
But opponents say it’s simply an attempt to enable Applejack Wine & Spirits to build a chain of mega liquor stores as quickly as possible before cashing out. Applejack claims to be the “largest single liquor store in the country,” and co-owner Jim Shpall told The Denver Post in 2011 Applejack has 80,000 to 100,000 square feet in one location.
“Our goal is to grow and grow and grow, and to be on the cutting edge of new trends,” he said. “Craft beers are huge, as are whiskeys and single malts. We’re always updating our line of products and the look of the store. We never sit still,” he added.
Documents released in March by the City of Wheat Ridge show Shpall owns just 20% of the company. The other 80% is controlled by Ken Tuckman, chairman/ceo of TeleTech, an outsourcing firm, and his private equity firm, Mantucket Capital. Tuckman’s net worth is estimated at $1.35 billion by Forbes, which ranks him as 1,567 among American billionaires.
With the Colorado legislature nearing the end of the 2017 session, the measure is being rushed through, and is opposed by smaller independent liquor stores, The Colorado Statesman reported.
“The process doesn’t seem to be designed for a thoughtful, considered process with full public input,” Bruce Dierking, an attorney and an owner of Hazel’s Beverage World said. “It seems to be more designed to railroad something through.”
Dierking also warned the measure, if passed, “would trigger an arms race. People would be going to Wall Street for money, not Main Street. Our marketplace would convert from primarily an independent marketplace with a lot of family-owned businesses to mostly a chain marketplace. The little stores would just be getting crushed left and right.”
“It’s going to be a long haul because the liquor lobby gets very emotional,” State Rep. Faith Winter (D) said. “It’s going to be an interesting vote count. It’s not going to be partisan, It’s not going to be based on geography. It’s going to be an interesting next couple of days.”