New Colorado law limits grocery stores’ ability to sell hard alcohol

Colorado Senate Bill 33 was signed into law by Governor Jared Polis on April 10 after passing the legislature with sizable bipartisan support. The new Colorado law blocks the state from issuing additional liquor licenses to “liquor-licensed drugstores” (“LLDS”), which typically means grocery stores that also have pharmacies – think Safeway, Kroger, Target, Wal-Mart, etc.

The new Colorado law went into effect immediately and does not impact liquor-licensed drugstores that already have those licenses. Those license holders will still be able to renew their licenses, however, they will not be permitted to expand or obtain additional LLDS licenses.

For background, Colorado Senate Bill 33 was brought in response to the recent expansion of full-strength beer in grocery stores in 2019 and the addition of wine sales in grocery and convenience stores in 2023 – both of which have led to dramatically lower sales for Colorado’s independent alcohol retailers.

Key takeaway: With the exception of those few stores already licensed, grocery stores in Colorado will no longer be able to sell spiritous liquors as of April 10. Colorado grocery stores will be limited to the option of selling beer and wine only.

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