02-25-1985 Council Packet - Laserfiche WebLink

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5. EXTENDING THE NINE SELLING PRIVILEDGE TO MINNESOTA GROCERY STORES COULD HAVE CONSEQUENCESSEVERE NE A. When grocery stores are allowed to sell wine, shocking wine consumption increases occur overnight. These increases range from a low of 41% to a high of 718% with an average of over 300% in studies conducted in seven states; B. Wine consumption increases are uniquely dangerous; 1) States dominated by wine consumption preferences have the highest rates of overall alcohol consumption in the United States; 2) States dominated by wine consumption preference have the highest rates of Liver Cirrhosis in the United States; 3) When the percentage of the alcohol consuming population broadens, the pro Portions of alcoholics and abusive drinkers broaden accordingly; 4) Foreign countries where wine is treated like a mere food, like Frar and Italy, have the highest rates of alcoholism and liver cirrhosi in the world; 5) Studies clearly show that when beer nr spirits are the dominant alcoholic beverage within a state, rates of alcoholism and liver cirrhosis are surprisingly low. 6) High correlations exhist in many wine -in -grocery states between increased wine sales and Property Damage, Injury Producing Accidents, 3 Felony Drunk Driving Arrests; C. Grocery stores have a poor record of underage sales to minors. Studies from coast to coast reveal that grocers range from 50% to 900% more likely to make underage beverage alcohol sales than exclusive liquor dealers: D. Many wine -in -grocery stores states rank as the worst states on the Alcohol Problems Index which calculates per capita consumption, alcoholism, alcohol -related crimes, alcohol death Dublic drunkenness and drunk driving. A. One study shows a 25% gross sales drop to package liquor stores when wine was introduced irco grocery stores; B. Where grocery stores can sell wine, wine industry studies show that grocers average nearly 70% of all wine sales in the marketplace; C. Municipal liquor stores (unique to Minnesota in any real numbers) would e harmed, both reducing tax revenues and control. D. Consumers would be harmed since grocery stores rarely carry boutique wines, resulting in liquor stores being stuck with slower moving, imported wines which means much higher prices. Exclusive liquor stores would also sharply reduce wine selection. One study projects a first year minimum decrease of 30% of facings and a minimum price increase of 20%. 7. DANGERS BEYOND THE FIRST YEAR OF WINE IN GROCERY STORES: A. Nine sales could be extended to Gas Station Superettes; B. Grocery stores could easily push for strong beer as well; C. Only four states with wine -in -grocery stores have resisted the pressure to put Spirits in grocery stores D. The grocery industry preference for Price Advertising would erode the last bastion of control,