Colorado Beer Analysis

The Regis University

A Case of Colorado Beer

by

Venkata Potturu

Submitted to: Edward Lyell

Submitted on: March 31 2013

The Economics of Management

A Case of Colorado Beer – Liquor Store Advocate

One may state that upon the passing of the new beer law, some sales in the existing liquor stores may decline.   Despite this possibility, this can present a major expanding opportunity for all the craft beer creators in the area.   As Liquor store advocate, I support the passage of House Bill 1192, which would allow Liquor stores to sell full strength beer. While there are arguments on both sides for and against this Bill, one must recognize that convenience stores sales were affected by the recent changes to the law allowing Sunday sales of liquor, malt beverages and wine.   We have seen a decrease of 16 % in sales of 3.2 beers during the 1st quarter following the change. This might have a significant impact on the ability of the convenience store to compete with alcohol sales on Sunday with Liquor stores. Few think encouraging sales on Sunday’s will create an inequity in the market, which is not true.

The state of Colorado has one of the highest percent of microbreweries in the United States per capita and is famous for craft beers.   Colorado has a higher percentage of alcohol consumption than 60 percent of other states.  Alcohol industry generates $145 billion in retail sales in the United States. Colorado consumption is 11.6% higher than the national average, with beer representing 55% of the alcohol purchased in Colorado. Coloradoans employed by liquor stores increased 16.8% from 2002-2008, with $203,727 million in direct earnings to Colorado Coloradoans in 2008. The higher level of Colorado liquor consumption per capita could correlate to widespread retailing of liquor in the state, along with a slightly younger population and higher rate of...