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Additionally to the extent that the Orono Liquor <br />Store is a convenience store and a number of the <br />-ogle living in the neighborhood are commuters to <br />downtown Minneapolis, th(,.—c is also competition <br />with some of the more regional liquor wholesalers <br />particularly tiaskells and MGM on Highway 12 <br />together with MGM on Highway 7. <br />III. SIGNIFICANT CHANGES/EVENTS/NEXT FIVE YEARS <br />A. CHANGES IN MARKET/PRODUCT <br />1. External - The following represent the most <br />significant anticipated changes in the next five <br />years. <br />a) Market <br />- A contint.d moderation of per capita consumption <br />- Increase in the legal drinking age from 19 to 21 <br />(although it is n anticipated that this would <br />have a significant impact on the Navarre business <br />a- it represents less than 10% of the store's <br />,jiness.) <br />b) Competition - Increase. price and marketing <br />competition on the retail level may include: <br />- Sale of wine in grocery stores in the next few <br />years placing 33% of the sales in the Orono store <br />in i, more competitive environment. <br />- Snould wine in grocery stores become a reality it <br />is expected that additionally there will be <br />legisl_,ion for one class of beer resulting in <br />grocery stores selling strong beer and placing <br />another 33% of our total sales again in competition <br />with the grocery stores. <br />- Act-ual aJvertised price competition in the media <br />for retail �-,torc- 'n the next 3 years promoted <br />primarily by e r y stores and warehouse <br />operations <br />- Shifting to "warehouse" style of operations for <br />retail store to compete on a price basis. <br />c) Other <br />- Attempts on the legislative level by wholesalers <br />to effectively refranchise and return to the prc.- <br />1980 system of one distiller u:.ing one or possibly <br />two wh Aenalers in the State. This failed in the <br />1985 legislature and its chances of passing in the <br />3 <br />