12-09-1985 Council Packet - Laserfiche WebLink

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Additionally to the extent that the Orono Liquor Store is a convenience store and a number of the people living in the neighborhood are commuters to downtown Minneapolis, there is also competition with some of the more regional liquor Whc lesalers particularly Haskells and MGM on Ni 1, way 12 together with MGM on Highway 7. III. SIGNIFICANT CHANGES/EVENTS/NEXT-FIVE YEARS A. CHANGES IN MARKET/PRODUCT 1. txternal - The following represent the most significant anticipated changes in the next five years. a) Market - A continued moderation of per capita consumption - Increase in the legal drinking age from 19 to 21 (although it is not anticipated that this would have a significant impact on the Navarre business as it represents less than 10% of the store's business.) h) Comp -titian - Increac,ed price and marketing competition on the retail level may include: - Sale of wine in grocery stores in the next few years placing 33% of the sales in the Orono store in a more competitive environment. - Should wine in grocery stores become a reality it is expected that additionally there will be legislation for one class of beer resulting in grocery stores selling strong beer and placing another 33% of our total sales again in competition with the grocery stores. - Actual advertised price competition in the media for retail stores in the next 3 years promoted primarily by grocery stores and warehouse operations - Shifting to "warehouse" style of operations for retail store to compete on a price basis. c) Other - Attempts on the legislative level by wholesa1+:rs to effectively refranchise and return to the pre- 1980 system of one distiller using one or possibly two wholesalers in the State. This failed in the 1985 legislature and its chances of passing in the 3