The State Of Beer: A 3.2% Guide
By Steve Dwyer on Aug. 01, 2018CHICAGO -- Shortly after the Volstead Act repealed Prohibition in 1933, several states enacted their own laws limiting the maximum amount of alcohol in beer to 3.2%. Today, only five states still enforce these laws, which require convenience stores and supermarkets to sell 3.2% alcohol by volume brew while private and state-operated liquor stores mostly enjoy a full-strength-beer advantage.
Within the next year, three of those states—Oklahoma, Colorado and Kansas—will enact laws that allow c-stores to sell full-strength, or “full-point,” beer. Here's a look at what's on tap for each state ...
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Kansas
In April 2017, the Kansas Senate and House voted to allow stronger beer with an alcohol content of up to 6% by volume to be sold in c-stores and grocery stores starting in April 2019. Liquor stores would be allowed to sell products other than alcohol, such as ice, mixers and shot glasses, up to 20% of their sales. Similar to Oklahoma, all retailers in the state—c-stores, grocery, mass and liquor stores—had all been subject to 3.2% beer requirements, making it a level playing field.
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Oklahoma
In 2016, the state legislature overwhelmingly approved a law allowing sales of full-strength beer and wine starting Oct. 1. Oklahoma accounts for more than 50% of all 3.2% beer sold in the U.S. Until Sept. 30, an interim license will be available through the Oklahoma Able Commission. Any stock (including 3.2% alcohol) in a retailer’s inventory on Oct. 1 will automatically be considered “full-point liquor” by Oklahoma law. Stores that choose not to get licensed will be unable to sell or keep stock of alcohol on location. With the new law, liquor stores in the state, which had also exclusively sold 3.2% beer, will now be able to sell beer cold, a new perk. This could affect Oklahoma c-stores, which have been able to sell beer cold.
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Colorado
In June 2018, the state legislature approved the new law granting sales of full-strength beer across all retail channels. The state accounts for more than 20% of all 3.2% beer sold nationwide. An estimated 2,300 to 2,400 c-stores are poised to benefit Jan. 1, 2019, when the new law goes into effect. It also allows c-stores to obtain multiple licenses. Before, only packaged-liquor stores could obtain multiple beer licenses to sell full-strength beer; c-stores were limited to a single-store license, regardless of how many stores a chain owned.
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Minnesota
Currently, sale of regular-strength beer and wine is restricted to private and municipal liquor stores. Last May, the Minnesota legislature held hearings that provided a preview of the expected 2019 battle over whether to allow grocery and c-stores to sell it. Liquor stores have resisted such measures because they believe many small mom and pops could fold under changing market conditions. Lance Klatt, executive director of the Minnesota Service Station and Convenience Store Association, is mobilizing to introduce a proposal to allow c-stores to sell only beer and not wine and spirits—a friendlier bill that would not encroach fully on liquor store business.
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Utah
Wheels turn slowly to change the state’s 3.2% beer law, says Dave Davis, president and chief legal officer of the Utah Food Industry Association. “We attempted to find a solution (to adopt full-strength beer) during the last legislative session, but the leadership wants this problem to ‘mature’ first. There are discussions that if we can’t get a legislative fix, we’ll try and put a binding referendum on the November ballot, and that’s not easy to do here.” The Utah legislature has talked with A-B and MillerCoors about supply concerns and has “received assurances that beer would not go away completely.”
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