Massachusetts Alcoholic Beverage Licensing Blog

Patch.com reports about the public hearing held in Needham to debate allowing package stores in Needham. I absolutely support this concept; the "dry town" is an anachronism. There is NO evidence that having a package store or upscale wine shop in Needham would increase alcohol consumption among teenagers. Let's not forget that businesses have to ID buyers and face severe consequences for failing to do so. And Needham is losing money -- residents now go to Newton or neighboring towns to purchase alcohol, while downtown Needham storefronts sit empty.

Patch.com reports that those in support of lifting Needham's dry status talked Tuesday evening about the convenience of having wine and beer sold in town and the potential for bringing dollars now spent out of town back to Needham. But those who were against changing the law argued that allowing retail sales of alcohol would just make it easier for local youth to get their hands on these beverages, calling the matter "a public health issue."

About 75 people attended the selectmen's public hearing on whether to allow retail sale of alcohol in town--the purchase of wine, beer and possibly liquor for consumption off-site. This type of business, referred to as a "package store," has not been allowed in Needham for more than 75 years.

The town does allow the sale of alcohol in restaurants with more than 100 seats, and one-day licenses can be obtained for events where alcohol will be served on-site.

For more than an hour on Tuesday, Dec. 6, residents lined up at the microphone inside the James Hugh Powers Hall to speak on the issue.

Before the public comment portion, Council of Economic Advisors member Elizabeth Grimes reviewed the potential economic benefits of allowing alcohol sales in Needham, noting that it was difficult to collect exact numbers on the subject. She referenced the Food Marketing Institute's annual retail purchase survey, which found that the average U.S. household with an annual income of $65,000 to $75,000 spends about $500 per year on alcohol and that alcohol makes up about 6 percent of the average American's food budget.

She also estimated that Needham could see about $2,500 annually in additional license fees for alcohol sales. However, others later argued that any increase in fees would likely be offset by the cost of administering those licenses and additional police monitoring.

Continue reading "Needham Residents Weigh Existence of Package Stores " »

The House of Representatives has advanced a bill that would allow package stores to open the day after Christmas - a measure that would remove one of the last remaining Colonial-era blue laws restricting alcohol sales.

Current state law requires package stores to close Monday when Christmas falls on a Sunday, which means package stores this year will need to stay closed for two consecutive days.

"This is one of the quirks in the blue laws we never fixed," said Jon Hurst, president of the Retailers Association of Massachusetts, as quoted by the Patriot Ledger.

Hurst said he hopes to see the bill pass the House and the Senate and be placed on Gov. Deval Patrick's desk soon to give stores ample opportunity to schedule employee shifts and advertise to customers that they will be open Dec. 26.

Stores are still required to be closed Christmas Day, but package stores were left out of the equation in 2005 when the Legislature clarified state laws to make clear that most retail establishments are allowed to open the day after Christmas when the holiday falls on a Sunday.

The once-restrictive Sunday and holiday retail laws in Massachusetts have taken nearly two decades to unravel starting in 1994, when voters approved a ballot question that allowed retail stores for the first time to open on Sundays throughout the year.

Package stores first earned the right to open on Sundays in 2003 when the Legislature voted to allow cities and towns to grant licenses for Sunday alcohol sales.

"There's no real reason why they shouldn't be selling alcohol on the day after Christmas," said Rep. Colleen Garry, D-Dracut, who sponsored the bill, as quoted by the Patriot Ledger. "There's nothing legitimate about it except that it's an old blue law, and this will put stores on a level playing field with surrounding communities in other states."

After alcohol industry insiders struck a deal to permit supermarkets and other large retailers to gradually acquire more alcoholic beverage licenses, their proposal sailed through the Legislature this month and Gov. Deval Patrick agreed to it this week, signing the new legislation.

Under the new law, sponsored by Sen. Michael Rodrigues, D-Westport, the cap on licenses per corporation would be lifted from three to five in 2012, up to seven in 2016, and to nine in 2020. The bill also would assess applicants $5,000 for every license in they obtain in excess of three. This enables supermarkets and liquor stores to increase the number of licenses that each company can hold.

In 2006, Massachusetts voters by a 53-41 margin rejected a ballot question permitting sales of wine at food stores. That question divided the electorate, drawing opposition from package stores and others fearful of increased underage drinking and increased drunk driving.

But the latest proposal spurred no debate or controversy on Beacon Hill. John Stasiowski, president of the Beer Distributors of Massachusetts, which opposed the 2006 ballot question, told the News Service in October that the bill does not create a new category of licenses, stays within the existing quota system and preserves the authority of local officials to approve licenses.

Rodrigues says the idea is to give consumers for buying alcoholic beverages.

"Consumers want choice and consumer want convenience," he said last
month. "In most states beer and wine are available anywhere, anyplace."

The Senate has approved and sent to the House a bill that would allow supermarkets and other large retailers to hold more alcoholic beverage licenses. The proposal increases the current cap of three to five in 2012, seven in 2016 and nine in 2020. The measure also would require stores to pay a $5,000 fee for every license they receive above three.

The bill is considered a compromise between opposing sides of a possible 2012 ballot question that would allow local cities and towns to permit grocery stores to sell beer and wine. The ballot question is being pushed by the grocery store lobby, and opposed by the liquor store lobby.

In 2006, voters rejected by a 53-41 margin a similar ballot question that would allow local cities and towns to permit grocery stores to sell beer and wine. Proponents had argued that 34 other states allow this and argued it would end a monopoly and save consumers millions of dollars by fostering more competition. Opponents said the measure would increase underage teens' access to liquor and lead to a hike in drinking-related problems and drunken driving accidents and deaths.

Plans to open a Wines & More liquor store in the former Borders Bookstore at 497 Turnpike Road (Route 9) have been put on hold.

The store was part of the bankruptcy proceedings involving Borders, the national bookstore chain that went out of business earlier this year. Wines & More had negotiated a lease with the previous owner, Harry Botsivales, a Cape Cod-based real estate investor. But last week, the holder of the loan on the property, LNR Partners LLC of Miami, foreclosed on the site.

Bud Perrone, a spokesman for LNR, said that on September 27, LNR took possession of the property, which has been vacant since the Borders Bookstore closed. "The site is currently being marketed to potential users," he said.

The Boston Globe reports that industry groups have struck a compromise to allow more grocery and package stores to sell alcohol.

I think this is wise. Currently, stores like Whole Foods or Trader Joe's, as well as liquor stores owned by the same company or person, can only sell alcohol at three locations across the entire state.

Under the agreement, the statewide cap on the number of liquor licenses store companies and individuals can own would gradually increase so that they can sell alcohol at more locations. The limit for these "off-premises" licenses, now three per company, would climb to five next year, to seven in 2016, and nine in 2020. Permits would require local approval.

A revised bill reflecting the new agreement was voted out of committee on Thursday, and could come before the full Legislature as soon as next week.

After a campaign over a 2006 ballot measure to allow more food stores to sell wine, supermarkets and liquor stores, along with beer and wine distributors, were reluctant to renew the battle, the Globe reported.

"It was a real motivator," said Jon Hurst, president of the state's retailers association. "It's a good compromise. I give both sides a lot of credit."

The 2006 ballot question was among the costliest in state history, with corporate interests spending more than $11.5 million spent to sway voters.

The measure, which was defeated 56 percent to 44 percent, would have allowed cities and towns to issue new licenses to grocery stores, and allowed them to hold an unlimited number.

The current legislation, however, works within the established quota system.

"It doesn't change the overall number of licenses, just the number you can hold," he said.

The raised cap on licenses would also give package stores more opportunity to grow, and increase the value of their current license should they decide to sell.

Critics have also raised concerns that teenagers will find it easier to buy alcohol from supermarkets than smaller liquor stores. Supporters say that with increased competition, customers will save money and enjoy increased convenience from one-stop shopping.

Police surveillance of liquor stores and restaurants has resulted in multiple arrests of underage persons for purchasing of alcohol and a five-day liquor license suspension for Powdermill Road business Millstream Liquors in Maynard.

Over a five-week period, officers witnessed the sale of liquor to underage patrons at Millstream Liquors. In three instances, the customer was not asked for ID and the clerk twice accepted a false out-of-state ID.

The Daily Hampshire Gazette reports that the town of Easthampton is one step closer to having its first licensed brewery in the town; the brewery plans to grow hops on site.

To prevent alcohol sales to youths, the Allston-Brighton Substance Abuse Task Force recently hosted a retailer training for local liquor stores at St. Elizabeth's Medical Center.

Representatives from 11 stores participated in the three-hour session led by Frank Connelly of the Cambridge Prevention Coalition, a community-based substance abuse prevention coalition.

Topics covered at the training included: best practices for preventing youth access to alcohol, information on state-of-the-art scanning technology to detect fake identification, and Massachusetts state law, among others. The following retailers participated:

Allston Food & Spirits, Allston
Bazaar on Cambridge Street, Allston
Chansky's Market, Brighton
Dorr's Liquor Mart, Brighton Center
Hurley's Liquors, Allston
Marty's Big Buys, Brighton
Mod Liquors, Dorchester
Oak Square Liquors, Oak Square
Reservoir Wine & Spirits, Cleveland Circle
The Wine Press, Brookline
Wollaston Wine & Spirits, Quincy

The training was a combined effort between the task force, St. Elizabeth's Medical Center, local schools and universities, the Boston Police. and the Alcohol Beverage Control Commission. Earlier this year, the task force hosted responsible-server training for bars in Allston-Brighton.

Connecticut residents have a new reason to cross state lines in to Massachusetts. First, it was cheaper gas, now it is cheaper liquor. Connecticut has raised its liquor tax by 20% effective July 1.

Employees at liquor stores near the state line have reported an increase in business.

Gas prices are also hovering over the four dollar mark in Connecticut.

Good piece in the Patriot Ledger about the increase in the number of wineries in Massachusetts. The Globe wrote about this last month, as reflected in my July 26 blog post.

There are now a record 36 wineries operating across the state, including seven that have opened since 2007.

The website patch.com reports on the snags facing three Braintree establishments trying to get up and running with liquor licenses. The article illustrates well the often cumbersome liquor licensing process, with a myriad number of issues that can arise, such as financing, parking, and entertainment. All the more reason to hire an experience liquor license lawyer to assist with the licensing process -- please contact us at www.fogelmanlawfirm.com if you need help.

Apparently, renovations at the Linwood Mill are under way, and the upcoming Mill House Wine and Spirits will have a new addition to its business - a new liquor license.

At Monday night's Board of Selectmen meeting, an unanimous vote by the board appointed an all alcohol package store license to the upcoming business, which will be located on the first floor of Northbridge's Linwood Cotton Mill.

In order for the license to be official, the Mill House Wine and Spirits must have the license approved by the state ABCC.

When the Massachusetts Food Association, representing more than 600 stores in the state, asked voters in 2006 to allow wine to be sold in food stores, it triggered one of the most expensive ballot-question campaigns in state history, with opposing sides combined spending more than $11.5 million.

Last week, the Food Association took another shot at it by filing two ballot questions with state Attorney General Martha Coakley's office, one that would allow food stores to sell wine and a second to allow grocery stores and supermarkets to sell beer and wine, under local control, according to the Boston Globe.

The news of a possible second round in the wine-and-beer retail battle has sparked strong reaction from local merchants, wholesale liquor distributors, and residents.

Massachusetts, supermarkets need permission from their municipal government to sell beer and wine, and are not allowed to hold more than three permits in the state, limiting the number of chain grocery stores able to sell alcohol.

These restrictions create a real drawback for innovative breweries, said Joe Slesar, owner of Boston Beer Works, a restaurant and brewery with five sites from metro Boston to locations on the North and South shores, and Hingham Beer Works.

"I think change would be a positive thing,'' said Slesar. Boston Beer Works distributes its beer to a couple of hundred package stores in Massachusetts.

Boston.com reports that Some Foxborough residents already fed up with drunken rowdiness at Gillette Stadium are questioning a proposal to put a liquor superstore in the shopping center next to the New England Patriots' home.

The proposal is to transfer the license of a downtown liquor store to a retailer who wants open a large store at Patriot Place.

Patriot Place already has 13 establishments that serve alcohol, but no package stores.

Selectman Mark Sullivan says he's been hearing from a lot of residents but told The Sun Chronicle he won't comment further.

Selectwoman Lorraine Brue was quoted as saying that the proposal appears to fly in the face of efforts by Police Chief Edward O'Leary's efforts to fight drunkenness at the stadium.