News
Colorado Halts New Liquor Licenses in Blow to Big Retail, Boost for Local Shops
<p class="" data-start="262" data-end="589">Governor Jared Polis may have signed the bill, but he’s not exactly thrilled about it. A controversial new law in Colorado just put the brakes on new liquor licenses for grocery chains, marking a win for local liquor stores — and sparking debate over fairness, competition, and what it really means to “support small business.”</p>
<p class="" data-start="591" data-end="843">The bill, known as SB25-033, passed with strong backing in the legislature and has been celebrated by many mom-and-pop liquor stores. But it’s not without backlash — and even the governor who signed it made sure people knew he wasn’t clapping too hard.</p>
<h2 class="" data-start="845" data-end="881">A Shift That Hit Small Shops Hard</h2>
<p class="" data-start="883" data-end="1071">When Colorado voters approved a 2023 ballot measure allowing grocery stores to sell wine, it sounded like a convenience win for customers. But for independent liquor stores? It was brutal.</p>
<p class="" data-start="1073" data-end="1170">Josh Matteson, General Manager at Fishers Liquor Barn in Grand Junction, saw the damage up close.</p>
<p class="" data-start="1172" data-end="1367">“Thirty percent. That’s how much wine sales dropped after grocery stores got in,” he said. “And that didn’t just stay in the wine aisle — it took down our total sales by around 20 to 25 percent.”</p>
<p class="" data-start="1369" data-end="1454">That’s a quarter of a business wiped out overnight. No time to prepare. No easing in.</p>
<p class="" data-start="1456" data-end="1525">“People think it’s just wine,” he added, “but for us, it’s survival.”</p>
<p data-start="1456" data-end="1525"><img class="aligncenter size-full wp-image-11756" src="https://budgyapp.com/wp-content/uploads/2025/04/colorado-liquor-store-law-protest-grocery-wine-2025.jpg" alt="colorado liquor store law protest grocery wine 2025" width="681" height="419" /></p>
<h2 class="" data-start="1527" data-end="1560">What the New Law Actually Does</h2>
<p class="" data-start="1562" data-end="1738">SB25-033 bans state and local authorities from issuing any new Liquor-Licensed Drug Store (LLDS) permits — the type of license that allows grocery chains to sell beer and wine.</p>
<p class="" data-start="1740" data-end="1769">That’s it. No more expansion.</p>
<p class="" data-start="1771" data-end="1880">So if your local Safeway, Kroger, or Target already has a license, they&#8217;re fine. But any new ones? Forget it.</p>
<p class="" data-start="1882" data-end="2078">This freeze doesn’t affect existing license holders — it’s future applications that get locked out. That includes out-of-state chains hoping to break into the market, or local ones trying to grow.</p>
<p class="" data-start="2080" data-end="2124">And supporters say that’s exactly the point.</p>
<h2 class="" data-start="2126" data-end="2153">Who’s Cheering — and Why</h2>
<p class="" data-start="2155" data-end="2284">Matteson isn’t alone in calling this a win. Small liquor store owners from Fort Collins to Durango are breathing a little easier.</p>
<p class="" data-start="2286" data-end="2290">Why?</p>
<p class="" data-start="2292" data-end="2381">Because the new law levels the field, at least temporarily. Here&#8217;s what supporters argue:</p>
<ul data-start="2383" data-end="2681">
<li class="" data-start="2383" data-end="2486">
<p class="" data-start="2385" data-end="2486">Local shops tend to stock local booze — think small-batch bourbon or your neighbor’s microbrew.</p>
</li>
<li class="" data-start="2487" data-end="2561">
<p class="" data-start="2489" data-end="2561">Big chains often bypass Colorado producers for national suppliers.</p>
</li>
<li class="" data-start="2562" data-end="2681">
<p class="" data-start="2564" data-end="2681">Smaller stores have nowhere near the negotiating power to compete on price or volume with massive corporations.</p>
</li>
</ul>
<p class="" data-start="2683" data-end="2819">“This bill isn’t just saving liquor stores,” Matteson said. “It’s saving Colorado distilleries, wineries, breweries. Everyone upstream.”</p>
<p class="" data-start="2821" data-end="2886">One-sentence paragraph? Sure.<br data-start="2850" data-end="2853" />That upstream part matters a lot.</p>
<p class="" data-start="2888" data-end="3072">Liquor stores form a distribution backbone for hundreds of small beverage producers across the state — producers who might otherwise get squeezed out of shelf space if chains dominate.</p>
<h2 class="" data-start="3074" data-end="3108">Polis Signs — But Doesn’t Smile</h2>
<p class="" data-start="3110" data-end="3238">Governor Jared Polis, who’s usually on board with free-market changes, didn’t exactly pop a bottle after inking the legislation.</p>
<p class="" data-start="3240" data-end="3297">In fact, his public statement read like a regretful sigh.</p>
<p class="" data-start="3299" data-end="3571">“While the pro-free market and pro-consumer evolution over recent years might have been a burden on small, independently run liquor stores,” Polis wrote, “a permanent freeze on the LLDS license type puts the state government in the position of picking winners and losers.”</p>
<p class="" data-start="3573" data-end="3625">That phrase — picking winners and losers — hit hard.</p>
<p class="" data-start="3627" data-end="3701">To be clear: Polis signed it. But his messaging was basically, “I had to.”</p>
<p class="" data-start="3703" data-end="3901">This is rare. Governors don’t usually sign bills they think are “anti-competitive.” But the overwhelming support from both the state legislature and small business lobbyists left little wiggle room.</p>
<p class="" data-start="3903" data-end="4020">And it wasn’t just the House or Senate — the public sentiment, particularly in rural areas, was too strong to ignore.</p>
<h2 class="" data-start="4022" data-end="4053">What This Means for Shoppers</h2>
<p class="" data-start="4055" data-end="4114">Okay, so what happens now if you’re a consumer in Colorado?</p>
<p class="" data-start="4116" data-end="4287">Not much changes if you’re already shopping wine at a grocery store. But for folks in areas where stores don’t yet have LLDS licenses, don’t hold your breath for new ones.</p>
<p class="" data-start="4289" data-end="4334">The grocery wine wave has officially crested.</p>
<p class="" data-start="4336" data-end="4372">Here’s a look at how it breaks down:</p>
<div class="pointer-events-none relative left-[50%]! flex w-[100cqw] translate-x-[-50%] justify-center *:pointer-events-auto">
<div class="tableContainer horzScrollShadows group relative"><button class="hover:bg-token-main-surface-secondary text-token-text-secondary rounded-lg px-1 py-1 opacity-0 transition-opacity duration-200 group-focus-within:opacity-100 group-hover:opacity-100"></button></p>
<table class="min-w-full" data-start="4374" data-end="4683">
<thead data-start="4374" data-end="4436">
<tr data-start="4374" data-end="4436">
<th data-start="4374" data-end="4390">Type of Store</th>
<th data-start="4390" data-end="4407">Can Sell Wine?</th>
<th data-start="4407" data-end="4436">Can Get New LLDS License?</th>
</tr>
</thead>
<tbody data-start="4501" data-end="4683">
<tr data-start="4501" data-end="4553">
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4501" data-end="4537">Existing Grocery Stores with LLDS</td>
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4537" data-end="4545">â Yes</td>
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4545" data-end="4553">â No</td>
</tr>
<tr data-start="4554" data-end="4600">
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4554" data-end="4585">New Grocery Store Applicants</td>
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4585" data-end="4592">â No</td>
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4592" data-end="4600">â No</td>
</tr>
<tr data-start="4601" data-end="4646">
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4601" data-end="4629">Independent Liquor Stores</td>
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4629" data-end="4637">â Yes</td>
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4637" data-end="4646">â Yes</td>
</tr>
<tr data-start="4647" data-end="4683">
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4647" data-end="4668">Convenience Stores</td>
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4668" data-end="4675">â No</td>
<td class="max-w-[calc(var(--thread-content-max-width)*2/3)]" data-start="4675" data-end="4683">â No</td>
</tr>
</tbody>
</table>
</div>
</div>
<p class="" data-start="4685" data-end="4810">Expect more of the same for now — unless lawmakers revisit the law in future sessions. But that’s unlikely in the short term.</p>
<p class="" data-start="4812" data-end="4875">One-sentence paragraph? Right here.<br data-start="4847" data-end="4850" />This law isn’t temporary.</p>
<h2 class="" data-start="4877" data-end="4922">Tensions Between Convenience and Community</h2>
<p class="" data-start="4924" data-end="5021">The heart of the debate is about more than booze. It’s about what kind of economy Colorado wants.</p>
<p class="" data-start="5023" data-end="5127">Polis champions a freer market, one where consumers have more choice and competition drives prices down.</p>
<p class="" data-start="5129" data-end="5278">But liquor stores argue this version of “freedom” feels more like being pushed off a cliff while big chains parachute in with billion-dollar budgets.</p>
<p class="" data-start="5280" data-end="5308">There’s a cultural side too.</p>
<p class="" data-start="5310" data-end="5570">Grocery stores might be convenient, sure. But they’re not going to recommend a funky orange wine from a vineyard 30 miles away. They don’t know your name. They don’t care if your nephew just turned 21 and you want to celebrate with something special and local.</p>
<p class="" data-start="5572" data-end="5589">Liquor stores do.</p>
<p class="" data-start="5591" data-end="5714">“This bill might look like protectionism to some,” said one Fort Collins store owner, “but to us, it’s just staying alive.”</p>
<h2 class="" data-start="5716" data-end="5748">What’s Next for the Industry?</h2>
<p class="" data-start="5750" data-end="5809">Nobody’s popping champagne just yet — not even the winners.</p>
<p class="" data-start="5811" data-end="5944">The bill halts new licenses, but it doesn’t address the bigger structural issue: independent liquor stores are still in a tough spot.</p>
<p class="" data-start="5946" data-end="6038">Margins are razor-thin. Rent’s rising. Competition hasn’t gone away — it’s just been paused.</p>
<p class="" data-start="6040" data-end="6175">Some in the industry hope this breathing room will let stores adapt. Maybe modernize. Maybe even organize more local-focused marketing.</p>
<p class="" data-start="6177" data-end="6243">Others fear the pause won’t matter if the trendline doesn’t shift.</p>
<p class="" data-start="6245" data-end="6325">“This is a win, yeah,” Matteson said, “but it’s a break in a storm. That’s all.”</p>