Sunday, September 19, 2004
Sunday liquor? Better call ahead
Package sales OK, but some stores dry
By John Byczkowski Enquirer staff writer
It's now legal to buy liquor on Sundays at package stores in Ohio and Kentucky. Convenience is a key reason for the change, but that doesn't mean you'll be able to go to any store and buy booze today.
A new law in Ohio today ends a ban of more than 70 years on Sunday package liquor sales. The goal: Make shopping easier for consumers - and maybe give the state more tax revenue.
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Meanwhile, this will be the second Sunday for liquor and wine sales in Kentucky, because of a successful lawsuit by a liquor store in the Campbell County city of Bellevue. Yet currently, there's only one city in the commonwealth where such sales are allowed.
In Ohio, legal constraints in individual jurisdictions mean that only 121 of the state's 417 liquor stores will be able to open today. In addition, some of those 121 now eligible will stay shuttered, because their owners don't think Sunday sales will be profitable - a belief contested by others in the industry.
Betsy Schroder, the owner of Baskets Gourmet-Wine World in Anderson Township, is one of those who won't open her store today. All of Schroder's employees are full-time, working Monday through Saturday, so opening on Sunday would mean she'd have to hire somebody just to work that day - somebody she trusts with the keys and the safe.
Like many other store owners, Schroder believes opening her store on Sunday won't necessarily mean more sales - just a shift, as shoppers who used to stop by Friday and Saturday would now buy on Sunday.
"I don't make enough money off the sale of liquor to cover the rent, the employee, the electric and so on," she said.
Yet Schroder may only be half-right. While Ohio laws limit how much profit that storeowners will get from sales, liquor sales have turned the corner on a 20-year decline, and have been rising for six years. "People are drinking less, but they're drinking better," said David Ozgo, economist for Distilled Spirits Council of the United States in Washington, D.C.
In 2003, the number of cases of distilled spirits sold grew 3.9 percent, led by sales of premium and super-premium brands, like high-end scotches, bourbons, cognacs and vodkas. Jon Stiles, general manager of the Party Source in Bellevue, calls it the Grey Goose phenomenon (for the premium flavored-vodkas sold in a frosted-glass bottles).
"Everything that's coming out is premium - premium packaging and, it has a premium price tag on it as well," he said.
Trend continues
With the new changes, Ohio and Kentucky are among 32 states that now allow Sunday carryout liquor sales. The two states join nine others that have approved the change in the last 21/2 years.
Many observers assume sales won't rise just because some stores are open on Sunday, but economist Ozgo said that's not the case.
Stores in New York, Pennsylvania and Delaware - all states that have allowed Sunday openings in the past year - have seen better-than-average increases in sales. In Pennsylvania, stores open Sundays saw overall sales jump 20 percent, compared to a 5 percent increase in sales at stores not open Sundays.
"Twenty-percent growth in our industry is just unheard of," Ozgo said.
The reason for the increase might be that because it's available on Sunday, shoppers are buying liquor instead of beer and wine. Sunday has become the busiest shopping day of the week for grocery stores, mass merchandisers and convenience stores, according to market researcher ACNielsen Homescan.
Convenient revenue
The architect of the new Ohio law was state Sen. Robert Schuler, who represents Warren County and eastern Hamilton County. He introduced SB 164 to change Ohio's law because of the shift to weekend shopping.
"The thought was that if you can go to a bar and get drink of liquor, then what's wrong with taking it home and drinking? It's probably better to drive home and drink than it is to drink and drive home," he said.
There's also was another reason for expanding sales: taxes.
Ozgo said states that allow Sunday sales have seen liquor tax revenues increase. Matt Mullins, spokesman for the Ohio Division of Liquor Control, said that issue hasn't even been examined here, although some legislators said last spring when the law was being debated that the state could see $9.4 million to $14.8 million more a year in liquor taxes from Sunday sales.
Liquor store owner Schroder said state regulators are calling her every other day to ask that she get her contract amended so she can sell on Sunday. "The state is definitely pressuring us to get our (Sunday) licenses," she said.
The new Ohio law says essentially says if a local area allows liquor to be sold by the drink in bars and restaurants on Sundays, then liquor stores can apply to have their contracts with the state Division of Liquor Control changed to allow them to sell on Sunday.
In Ohio, however, liquor stores sell liquor on consignment for the state, and earn just a 6 percent commission. "Six percent is not a lot of money," said Kenny Patel, manager of the One Stop Party Shop in Delhi Township. His store sells beer, wine and party supplies and is already open on Sunday, but he said liquor sales alone don't provide enough profit to cover costs.
"Having the liquor in your store is a nice draw," said Steve O'Bryan, who owns O'Bryan's Wine and State Liquor Agency in Landen. "But you're going to make your money off beer and wine" because the margin on them is 25 percent.
Despite Ohio's new law, none of Warren County's seven liquor agencies - including O'Bryan's - will be able to sell liquor today. All seven are in areas where local laws don't allow Sunday sales.
But O'Bryan is building a new, larger store just 100 yards away. And when the store opens in October, he'll be able to sell liquor on Sunday because that location is in a different, "wet" precinct.
With this kind of confusion, "it's going to take a long time for people to realize you're open," he said.
Interpreting the rules
For the time being, storeowners on both sides of the river will be busy sorting out the changes.
Toni Sander, who owns The Wine List in West Chester, was told by the state that her store would not be allowed to sell liquor on Sundays, because carryout sales generally aren't allowed in her precinct.
She said she hopes that's just a clerical error, because the Meijer store across the street sells beer and wine on Sundays.
"I want to be able to compete," Sander said. "If everyone in my area is going to open on Sunday, then I have to be open on Sunday."
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E-mail johnb@enquirer.com
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