Maryland liquor stores fear losses as Gov. Moore backs grocery alcohol sales

Todd Karpovich | Dec. 24, 2024 | The Baltimore Sun | Original Source

JoAnn Hyatt, owner of Wells Discount Liquors, said her family-run business has been around for 88 years, and she hopes the store will continue to serve the local community for much longer.

Hyatt was joined by several other owners of local liquor stores who are opposed to Gov. Wes Moore’s support for 2025 legislation that would allow Maryland grocery stores to sell beer and wine.

The small-business owners fear the proposal will put many of them out of business. Hyatt criticized Moore for not reaching out to small business owners to get a sense of how this legislation will impact their livelihood.

Maryland is one of three states, along with Rhode Island and Alaska, that prohibits the sale of beer in its grocery stores and one of 10 that does not allow the sale of wine, according to Moore.

“We are very disappointed in Gov. Moore,” Hyatt said at a press conference at Wells on York Road near the Baltimore County/City line. “He is supporting big-box stores, and all their headquarters are located out of state. I also believe this will not increase taxes for the state of Maryland. There will be many store closings because of this and many unemployed people. Small stores can’t compete with large-quantity discounts these box stores will be able to do.”

Moore has said that he anticipates the Democratic-majority General Assembly will address opponents’ concerns during the 2025 legislative session, which begins Jan. 8.

“Governor Moore announced his support for beer and wine sales in grocery stores because Maryland is one of a handful of states in the nation where consumers can only buy beer and wine from specialized stores — resulting in less consumer choice and putting our stores at a disadvantage,” said Carter Elliott IV, Moore’s senior press secretary.

“Lifting this ban puts the consumers first, and ensures fair competition in the marketplace,” Elliott said. “This is supported by over 70% of Marylanders, from the Eastern Shore to the mountains of Western Maryland it is clear people widely support this decision.”

The Moore administration and state lawmakers are looking for ways to address a budget deficit estimated to be around $2.7 billion next fiscal year. Alcohol taxes generate more than $300 million per year for the state.

Ashish Parikh, owner of Cranberry Liquors in Westminster, said he has pursued his American dream for two decades as a small business owner. He also contends that if the proposal is passed, he will have to close and that will impact other businesses, such as banks and insurers.

“As Marylanders, we should support local, shop local, buy local and support each other,” said Parikh, a native of India. “We support each other’s growth, and it is a small-business-friendly state.”

David Brauning, chairman of the Carroll County Board of License Commissioners, which regulates alcoholic beverages in the county, said many small businesses would be negatively affected should the legislation be approved.

“The proposed sale of beer and wine in grocery stores would create a hardship on these businesses due to lack of buying power and cause many of them to close,” Brauning said in a statement. “In addition, the Board of License Commissioners of Carroll County have serious concerns as to the prevention and control of alcoholic sales to minors in a large open counter area.”

Jeryl Cole, owner of Off the Rox in Highlandtown, said he was a “first-generation entrepreneur” from his family. Cole has owned his business for six years and sells only beer and wine, so the proposed bill would be devastating.

“I don’t think we could ever compete with convenience stores, like Royals Farms or 7-11, and so on and so on,” Cole said. “We’ll be out of business. We’re invested in our community.”

Jed Jenny bought the Wine Source in Hampden with eight other employees when owner/founder David Wells retired. Those new owners were blindsided by the proposal.

“I worked for the Wine Source for 19 years and it’s been a great opportunity. We are all very passionate about the history, the products and what we sell,” said Jenny, who was flanked by fellow owner Caitlin O’Connor. “Obviously our business plan and projections did not include Governor Moore’s recent statements. It’s almost comical timing for us at eight weeks in, but we are ready for what’s around the corner.”

The reaction among local consumers is mixed.

“I understand that having beer and wine sales in grocery stores may hurt some small businesses,” Cockeysville resident Mark Maloney said. “But it may help others. And it’s currently something that most other states allow. I mean, pot is legal but buying a six pack of Natty Boh at Giant isn’t? Seems like legalization of marijuana is a far bigger threat to alcohol sales than beer and wine in grocery stores.”

Others are opposed to the idea.

“I’m against the sale of alcohol in grocery stores because it would cause a lot of local small businesses to close and put many employees out of work,” said Howard County resident W. Edwin Mullinix. “There’s no redeeming value to the proposal except to make big corporate stores bigger. Alcohol can be conveniently purchased at many local liquor stores.”

Baldwin resident Karen Shifflett contends the proposal could create challenges.

“In my opinion, it would hurt small businesses; not to mention slow the lines at the grocery store,” she said.