A highly anticipated debate in Massachusetts is preparing to finalize a decision on November 8, 2022, after votes are made on ballot question #3.

Ballot question #3 concerns off-premise alcoholic beverage retailers and the number of licenses that an entity is allowed to hold. Voting YES will allow entities to ultimately hold eighteen beer and wine licenses, an increase from the nine currently allowed. (This increase will be gradual.) Voting YES will also decrease the number of full liquor licenses from nine to seven. Ultimately, a YES vote will help restore balance in the off-premise retail industry.

Voting YES on ballot question #3 will not only support consumer demand and promote equal opportunity for all retailers, but it will also help save local businesses by preventing big corporations from dominating the market. Voting YES will further assist local businesses and better public safety by prohibiting self-checkout of alcoholic beverages and establishing a fine for selling to a minor applicable to the total amount of purchases, rather than just for the alcohol purchased.

Voting YES will aid in expanding tourism and increasing the customer base in Massachusetts to allow retailers to accept out-of-state IDs, as we are currently the only state that does not force retailers to reasonably rely on valid out-of-state IDs.

Liquor License Advisor encourages you to vote YES to not only support local business but also to increase the demand for your license, as well as increase the return on your investment over time. We support our clients and business models that we’ve helped establish over the years, and it’s important to us that you are successful. Reach out to us any time with questions. We’re here for you.

An article posted in early July on rebusinessonline.com entitled “Retail, Restaurant Industries Embrace Post-Pandemic Design Shifts” addresses the post-pandemic shifts in consumer behavior, as the ease of ordering online with multiple pickup and/or delivery options has become the norm over the past few years. Although the pandemic is behind us, the behaviors consumers adopted are not, and consumer behaviors and expectations when it comes to shopping, dining, and drinking have changed, and businesses are paying attention. Let’s take a closer look at how restaurants are adapting.

The article identifies Border Foods, one of the largest privately held Taco Bell franchises in America, as one restaurant that has worked to create a new restaurant concept designed around the established fast-food model – but an elevated experience, with two-stories and four drive-thru lanes. Josh Hanson, founder and CEO at Vertical Works and WORKSHOP (the company behind the Border Foods redesign), states that their goal was to offer a “highly personalized customer experience” and that “the pandemic accelerated this expectation, as retailers were forced to connect with consumers in new ways.”

November 8, 2022 is a date that all liquor store owners should have circled on their calendar as a lot rides on the outcome of a proposed ballot question for 21st Century Alcohol Reform bill.

Most recently, more than 19,000 signatures from the public were filed in support of the reform, which over time would gradually increase the current number of licenses available to a single retailer from 9 to 18 by 2031.

Why is the number 9 so important?

As previously mentioned in Retail Tier Reform: Looming 21st Century Alcohol Changes in Issue #17 of The Advisor, the license cap for the sale of all alcoholic beverages (beer, wine, and liquor under the same license) would be reduced from 9 to 7. Retailers will be allowed more licenses overall; however, the cap for all alcoholic licenses will be lower.

For retailers who are currently near or wanting to capture the 9 license limit, they will have to pick up licenses quickly and start now.

With the cap increasing and the quota remaining the same, simple economics of supply and demand suggest that anyone who has a controlling interest in multiple stores, specifically those with all alcoholic licenses will greatly benefit.

For successful retail owners with great ambitions of increasing their capacity, this is not a time to “wait and see”. Your climb to nine licenses has to start now while there’s still time to get them under agreement.

Waiting around on the sidelines to see what happens won’t work and in fact will be too late. If you need a plan, we’re here for you. Call us any time at 781-319-9800.

On Friday, July 15, the Mass Pack Association announced to its membership that the Office of the Secretary of the Commonwealth has confirmed that the Association’s ballot initiative petition (the “Expanded Availability of Licenses for the Sale of Alcohol Beverages”) will appear on the ballot as Question #3 this November. The announcement proclaimed, “Not since the repeal of Prohibition has an issue of this importance within our industry been put to voters. This is historic.”

The announcement, put forth by Ryan Maloney, President of MassPack and owner of Julio’s Liquors in Westborough, MA; and Benjamin Weiner, Chair of the 21st Century Alcohol Retail Reform Committee and owner of Sav-Mor Spirits in Somerville, MA, comes after a year-long process that involved signature campaigns and the tireless efforts of the Mass Pack Association to bring awareness to their membership and to the general public.

The announcement breaks down just exactly what a YES vote in November entails:

• A YES vote in November will expand convenience by gradually increasing the number of allowed beer and wine licenses from nine

• (9) to eighteen (18), minus any full liquor licenses owned. Most states allow three (3) to five (5) full liquor licenses. The number of liquor licenses in Massachusetts will be capped at seven (7);

• A YES vote also enhances public safety and encourages vigilance by retailers through prohibiting self-checkout of alcohol beverages and by basing the fine for selling to a minor on a store’s total sales and not just its alcohol sales; and

• A YES vote additionally supports state tourism and brings Massachusetts in line with every other state in the country by allowing for valid out of state IDs to be relied upon by alcohol beverage retailers.

A July 7 ballotpedia.org article entitled “Two Massachusetts ballot initiatives filed a second round of signatures for a spot on the November ballot” explains the somewhat convoluted process of a ballot initiative becoming a question on the ballot, stating that: “The process for initiating state statues in Massachusetts is indirect, which means the legislature has a chance to approve initiatives with successful petitions directly without the measure going to the voters” and that “[the initiative] submitted the required 3% of signatures in December 2021 and were presented to the state legislature in early 2022. Since the state legislature did not act on the initiatives by May 4, the initiatives were cleared to gather a second round of 13,374 signatures to qualify for the November ballot.”

The Daily News reported on July 9 (and then updated the report on July 13) that “[the proposal] to expand retail beer and wine sales…cleared a final hurdle to the November ballot,” which is positive reinforcement to local liquor stores who believe that small business in Massachusetts is under attack and that they are fighting for their survival by undertaking the ballot initiative, which has now become a reality as Question #3 on November’s ballot.

Support local liquor store businesses by making A YES vote on Question #3 in November!

A recent bevalcinsights.com report featuring “Drizly’s Top Predictions for Summer 2022 Sales” provides some great insight as to what consumers plan to drink this summer as temperatures – and travel – heats up. This summer, recovering retailers can capitalize on consumer preferences and their desire to experience the local flavor after being homebound for summers’ past. It’s no surprise that people generally reach for more refreshing beverages during the hot summer months; however, as beverage trends have shifted, what refreshing beverages people will reach for is the key question this summer.

According to Drizly’s report, white wine and light lagers have experienced more popularity than usual this year, which suggests that this popularity will only increase during the summer months.

Ready-to-drink (RTD) cocktails continue to enjoy massive popularity, and it seems that they may replace hard seltzers as the #1 go-to for summer celebrations. One reason why RTD are gaining popularity may be because people are considering more what they are putting into their bodies, opting for more natural choices. Liz Paquette, Drizly’s head of consumer insights, notes that, “The RTD category continues to grow and gain awareness among consumers. Consumers are becoming more educated on what is in the drinks they are choosing – like vodka-based cocktails versus malt-based seltzers – as well as seeking new flavor innovation.”

As red wine has recently increased in popularity, especially amongst younger consumers, white wine may also increase in popularity this summer, as it has increased in shares since 2021, and wine lovers may opt for the cooler, more refreshing wine option during the summer months.

A Home Rule Petition was filed on April 1, 2022 regarding the allocation of liquor licenses in the City of Boston, as supporters of the petition argue that there is a disproportionate distribution of liquor licenses across the city and that “the well-documented racial wealth gap in Boston shows that it is crucial for MWBE’s [Minority/Women-Owned Business Enterprises] to have equitable access to liquor licenses in order to advance economic equity”.

The petition requests that 200 non-transferable licenses (meaning that if the business closes, the license would go back to the city) over a three-year period be distributed to establishments with a capacity of 50 people and under in the following neighborhoods: Dorchester, Mattapan, Roxbury, and Hyde Park, where there is currently a lack of licenses. For example, the petition points out that out of the 1,432 liquor licenses in Boston, Mattapan holds only ten of them.

It is proposed that all liquor licenses in the City of Boston shall increase by at least 10% over a ten year period. These licenses are for on premise use only, and because they would be non-transferable, these licenses would be given back to the City of Boston if revoked or canceled, to grant an application with the same requirements.

WCVB5 Boston commented on the petition in an April 7 update, describing it as “a tool for addressing the city’s racial wealth gap”. Likewise, an April 17 Boston Globe article entitled, “Waiting for liquor license reform in Boston”, comments on the petition, stating that: “Reforming liquor license law isn’t ultimately about booze. It’s about economic opportunity”. The article argues that because liquor license holders tend to open establishments in wealthier parts of the city, the less wealthy neighborhoods are hurting. The article also calls out Boston’s state-imposed hard cap on restaurant liquor licenses as being “antiquated and stubborn…a vestige of a bygone time”.

On June 16th, 2022, a City Council Committee on Government Operations hearing was held regarding important matters for the City of Boston, including this home rule petition, which consists of two Dockets: Docket #0465 and #0435.

Docket #0465 is the Petition for a Special Law Regarding an Act Authorizing Additional Licenses for the Sale of Alcoholic Beverages to be Drunk on the Premises in Boston, with sponsors being Councilors Brian Worrell, Ruthzee Louijeune, and Ricardo Arroyo. Docket #0435 is the Petition for a Special Law Regarding An Act Authorizing the City of Boston to Grant Four Additional Licenses for the Sale of Alcoholic Beverages to be Drunk on the Specified Premises, with sponsors being Councilors Ruthzee Louijeune and Julia Mejia. If you were unable to attend the hearing, we’ve got you covered with an overview of the discussion to provide you with the most current updates.