UNEVEN PLAYING FIELD

THE IMPACT OF SENATE BILL 54…

Senate Bill 54, currently pending in the Kansas Senate would allow grocery stores, big-box stores, gas stations, convenience stores and others to sell liquor, wine and strong beer. The passage of this law would have significant negative unintended consequences…

Why will businesses close and jobs be lost?

There are currently 776 retail liquor stores in Kansas. Proponents of the bill admit that 381 of these stores will have to close. Other studies have shown the number to be higher. These locally owned stores boost local economies and strengthen communities. The resultant loss of jobs of employees and owners would not be offset by new jobs in the grocery stores.

Missouri allows alcohol sales in grocery stores, convenience stores, etc. Why shouldn’t Kansas?

Kansas liquor stores owners established and invested in their business, chose their locations and built their stores relying on long established rules of operation. Positive changes in those rules and regulations over the years have benefitted the Kansas consumer, and the Kansas liquor industry. SB 54 would suddenly change these rules and pull the rug out from under these small businesses. Kansas should provide a stable and reliable regulatory environment for businesses to thrive and to invest in without fear. Missouri has had their retail system for a long time also. Those who invest in that state do so under a different regulatory model and can expect different results.

What effect will this bill have on local economies?

Kansas liquor stores are locally owned. The corporations lobbying for passage of SB54 are out-of-state companies with headquarters in Arkansas, Iowa and Ohio. Nearly all dollars generated by locally owned businesses stay in Kansas. This is not so with chain stores. Studies have shown that when customers spend $100 with a chain store, their purchase generates $14 in local spending by the retailer. That same $100 spent at a locally owned business generates $45 in local spending... three times as much. The ratio for charitable donations by local businesses is even greater.

Why would there be reduced selection?

Ironically, you the consumer will have a reduced selection of wine, beer and spirits. The mass merchandisers will only sell popular brands rather than offer expert advice and the wide selections you now enjoy from the family owned stores.

Will Liquor Stores be able to sell other products just like grocery stores?

No. For the first 5 years the law is in effect, retail liquor stores will not be able to sell any non-alcohol products. Just like it is now, we will have to confine such items to our Party Shop. Groceries, gas stations, etc, will have no such restrictions placed on them. They will be able to sell anything.

Will taxes go up?

Your taxes will almost certainly increase due to increased law enforcement requirements both at the state and local level to enforce increased licensing requirements included in the bill and attacking underage purchasing and drinking. The Kansas Department of Social and Rehabilitation Services (SRS) estimates an increase of $3,000,000 to their budget alone.

Why will prices go up?

Wholesale distributors predict that they will have to spend $7.5 to $10 million to create the trucks and infrastructure needed to deliver to thousands of new outlets, but sell the same amount of product – that cost will be passed on to Kansas customers.

UNEVEN PLAYING FIELD
With the passage of SB 54 Liquor Stores will NOT be allowed to sell any non-alcohol items else outside of our Party Shops. We would continue to be prohibited from selling corkscrews, soda pop, glassware, olives, cigars, peanuts, potato chips, limes, tonic and other items such as these in the Liquor Store. Grocery and convenience stores and others WOULD be allowed to sell these items with no restrictions. This, along with other provisions would create a very uneven playing field to the detriment of small, independent family-owned businesses.

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