Maryland is one of only three states that prohibit beer sales in chain stores and one of only 10 states that prohibit wine sales in chain stores. Its archaic legislative stance on selling beer and wine has been in place for more than 80 years and was narrowed even further in 1978 when the Maryland General Assembly eliminated the previous law that allowed chain stores to apply for one beer and wine off-premise license per county.
All of this is despite the way the retail landscape has changed dramatically over the past 42 years with the addition of major chains including Wegmans, Costco, Food Lion, Harris Teeter, Whole Foods and others, all of which have successful track records of selling beer and/or wine in other states.
Maryland is also adversely impacted by the less restrictive policies of adjoining states and territories. In Virginia, food stores can sell beer and wine as is also the case in West Virginia and the District of Columbia. Even Pennsylvania, whose Draconian laws once resembled Maryland’s, has expanded beer and wine sales in supermarkets on a limited basis in recent years.
An advocacy group – Marylanders for Better Beer & Wine Laws (MBBWL) – is hoping to modernize the Old Line State’s antiquated laws governing chain store beer and wine sales in the upcoming 2021 Maryland General Assembly session.
Started in 2005, MBBWL was instrumental in overturning Maryland’s ban on direct wine shipping by bringing together retailers, in-state and out-of-state wineries, grape growers, chambers of commerce and farmers to legalize winery direct shipping in 2011. Following on that victory, MBBWL turned its attention to chain beer and wine sales.
MBBWL’s steering committee includes some heavy hitters in legislative matters and in the retail industry. They include Tom Saquella, former president of the Maryland Retailers Association (which includes the Maryland Food Council); Robert McKinney, former American Beverage Association VP; and Gerry Gunster, of 1st Tuesday Campaigns, a Washington, DC firm that orchestrated the referendum repealing Oklahoma’s ban on chain store alcohol sales.
“Getting chain stores to carry alcohol is the number one issue for our members,” said Adam Borden, president of MBBWL (whose website is www.mbbwl.org). “Our statewide polling consistently shows residents in favor of it 2:1. It’s finally time to modernize Maryland’s laws to promote greater convenience and lower prices.”
He added that 98 percent of Americans can go to a grocery store and buy beer and 85 percent can buy wine.
In 2012, MBBWL conducted an economic study that found a $100 million dollar impact with legalized chain store beer and wine sales. The organization has projected that it could be as much as a $200 million dollar impact today. The money would come from upfront licensing fees per location and repatriation of sales currently occurring in Washington, DC where chain stores can sell beer and wine. “The licensing fees have tremendous potential opportunities for a state that has already cut $413 million from its budget due to the pandemic,” commented Borden.
MBBWL is currently reaching out to chain stores to join their coalition and is also obtaining proposals from Maryland-based lobbying, public affairs and research firms. Borden thinks 2021 will be different than prior initiatives due to the pandemic.
The pandemic has also severely impacted state coffers across the U.S., and lawmakers are looking everywhere for new opportunities to shore up declining revenue. After reviewing alcohol licensing fees and values in other states, MBBWL developed a licensing formula for the law change that they estimate could significantly help balance Maryland’s budget. “This has piqued a lot of interest of state government officials and legislators whom we have already spoken to,” Borden said.
“As the largest full-service omni-channel supermarket in Maryland, we pride ourselves on our wide selection, fast, friendly service, and convenient locations with one-stop shopping. The MD Alcohol Choice Coalition’s effort to allow customers to purchase beer and wine in Maryland grocery stores would further support our desire to fulfill our customers one-stop shopping needs, while also significantly enhancing customer convenience,” stated Ira Kress, president of Giant Food, which operates 92 stores in the state.
Safeway, too, believes the time has come to legislate for change over this issue.
“As one of the largest grocers in Maryland, Safeway offers a great selection of quality products and services, proudly providing our customers with the convenience of one-stop shopping. However, due to current law, customers are unable to purchase beer and wine in Maryland grocery stores,” said Jim Perkins, president of Albertsons Mid-Atlantic division which includes approximately 60 Maryland Safeway stores, making it the second largest supermarket retailer in the state. “So the MBBWL coalition is encouraging legislators to allow stores like Safeway to offer customers the convenience of purchasing beer and wine while grocery shopping. And Safeway can’t wait to offer this added convenience to our customers’ shopping experience.”
And even local organized labor, which for years represented a roadblock to open up alcohol sales in neighboring Pennsylvania, believes that food stores should be allowed to sell beer and wine in Maryland.
“We believe this legislation will have merit. Anything that provides more living wage jobs will help those individuals those companies and the communities that they serve. I view this as a positive,” said Mark Federici, president of UFCW Local 400, the largest labor organization in Maryland.