Buying alcohol may become easier this year as the Oregon Liquor Control Commission begins a new test program to set up liquor stores within grocery stores.
In a controversial move, the agency has already begun preliminary agreements with three Oregon retail stores, hoping to increase convenience for consumers and raise revenue for state and local governments.
The two-year plan calls for establishing as many as six of the pilot stores, one of which may be located in the Gateway area, OLCC Director Teresa Kaiser said.
If finalized, the contracts will allow selected grocery stores in Gresham, the Bethany area of Washington County and Bend to sell liquor, Kaiser said.
Kaiser said the agency will continue looking for new locations, including a retail location in Eugene, although high lease rates have hindered efforts to open new liquor stores in this area.
The decision represents a significant departure from existing OLCC policy. Oregon is one of several “control” states that requires the government to own liquor at some point before it is sold.
Currently, grocery stores are only allowed to sell beer and wine, while state-licensed liquor stores cannot sell those items or food.
The Associated Liquor Stores of Oregon voted unanimously in late April to contest the plan, saying it was “adamantly opposed” to the idea, ALSO President George Kuppler said.
Kuppler said the association, which comprises a portion of Oregon’s 238 liquor agents, did not know the details of the plan, including why it was initiated and how it would be funded.
“I still don’t have a good explanation of what the driving force was,” he said.
The OLCC projects sales of about $1 million from the grocery stores, less than the typical stand-alone liquor store licensed by the agency, Kaiser said. The agency will solicit feedback on the stores’ performances from customers.
“Ultimately, citizens will be the judge,” she said. “They can weigh in on whether we hit the mark.”
Kaiser said about half of the revenue from the stores will go to state and local governments. Last year, liquor sales totaled $267.9 million, with $111.7 million going to governments, according to the OLCC Web site at http://olcc.state.or.us.
Kuppler said the process is proceeding too quickly.
“This is not a fast track, this is a race track,” he said.
OLCC spokesman Ken Palke admitted the decision came quickly, but he said it was necessary to continue with contracting.
“You might say the rule was adopted in an emergency fashion,” he said.
Palke said agents were alerted that the OLCC was considering different marketing models for spirits.
The OLCC focused on “underserved” high-growth areas when determining where to locate the new store models, Kaiser said. The agency sought partner stores that were at least 1.5 miles away from existing liquor agents.
“We don’t want to upset existing agents,” Kaiser said.
Kuppler said agents don’t oppose opening new stores, but grocery stores will offer unfair competition.
“(Grocery stores) will end up with a very unfair advantage,” he said. “I can’t sell a candy bar.”
Kuppler also expressed concerns that the plan will lead to statewide loosening of liquor control.
“If this pilot moves forward, this opens the door,” he said. “We’ll probably be an open state in three to four years.”
However, Kaiser said the plan won’t be a radical change.
“We don’t want to be a California, with a store on every corner or every block,” she said.
Kaiser said the test locations would likely undergo remodeling to create separate, enclosed areas with different cash registers for the sale of liquor.
“We’re not going to have alcohol next to the lettuce,” Kaiser said.
She said the move is largely a
matter of consumer convenience because customers will be able to consolidate their shopping and have better access to parking and other amenities.
Kaiser said she feels the plan will improve enforcement of the drinking age.
“We’re very mindful and concerned about minor access,” Kaiser said.
Minors attempting to purchase alcohol will have to “run the gauntlet” through stores if they are using fake IDs and will be less likely to tap strangers on the shoulder to ask them to buy alcohol, Kaiser said.
Kuppler said the plan will “absolutely” increase minors’ access. He said his store is small enough to scrutinize patrons and that he is able to call in people waiting in parked cars to give ID along with the person who is making a purchase. These measures won’t be possible in a larger store, Kuppler said.
University graduate student Erika Brakken said the plan won’t change the availability of alcohol to minors because enforcement of age requirement should stay the same.
“I feel like they have a lot of ways to get around getting liquor under age,” she said. “Access to alcohol for minors is a bigger problem than legal places (that sell alcohol),” she said.
Junior Justin Carlson also said the plan won’t change minors’ access to alcohol because the laws regarding sales of alcohol won’t change.
“From what I understand, there’s still going to be a separate section,” he said.
Carlson said people who are of age will have easier access to alcohol, which is often sold at out-of-the-way locations.
“There are grocery stores everywhere, but it’s really hard to find a liquor store,” Carlson said.