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Research Reveals: Liquor Stores Thrive Despite Beer Sales in Grocery Stores

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Repealing “blue laws” and permitting the sale of alcohol on Sundays has a much smaller negative effect than what was anticipated by critics.

A new research paper put forth by Cristina Connolly and Alyssa McDonnell from the University of Connecticut, Marcello Graziano from the Norwegian University of Science and Technology, and Sandro Steinbach from North Dakota State University, showcases this. The research published in the Journal of Wine Economics by Cambridge University Press, investigates “the effect of implementing changes to Sunday blue laws on alcohol sales and retail competition, particularly in relation to Connecticut’s 2012 policy shift that allowed the sales of beer in grocery stores on Sundays.”

The prohibition on Sunday alcohol sales in Connecticut, a law that was more than a century old, was revoked in 2012. This occurred thirty years after the Connecticut Supreme Court ruled the majority of the state’s other Sunday sales prohibitions unconstitutional. The changes also permitted liquor stores to operate on Sundays, and grocery stores were allowed to sell beer on the same day.

Despite the changes to the blue laws, there are some who object to them. As per the Tech Talk newspaper from Massachusetts Institute of Technology, a study in 2008 suggested that “the revocation of America’s blue laws resulted not only in a decrease in church attendance, donations, and spending, but also led to an increase in alcohol and drug consumption among people who were religious.”

Connecticut’s repeal was opposed at the time by liquor store owners themselves, who expressed concern about everything from the “social costs” of more alcohol sales to the extra expense incurred from being open an extra day.

“Proprietors of liquor stores in Connecticut and store association lobbyists claimed that allowing Sunday sales would negatively impact their livelihoods,” write the authors of the new study. “Not only would they need to pay operating costs for an extra day of the week, but there was also a concern that consumers would shift to purchasing beer at grocery stores as Sunday is one of the most popular grocery shopping days. Specifically, Connecticut’s liquor store association claimed that, as a direct result of this policy, liquor stores would lose sales and reduce employment, or close.”

The authors examined Connecticut’s sales figures for grocery and liquor stores both before and after the repeal, using other states without Sunday alcohol laws as a control group. They found “no evidence of negative impacts on beer sales in liquor stores.”

“Despite repeated claims by liquor store associations,” the report concludes, “repealing these laws did not harm liquor stores, suggesting that it is possible to repeal Sunday blue laws without negatively impacting smaller businesses.” Incidentally, the study also contradicted claims by grocery store lobbyists, who said Sunday alcohol sales would “have large, positive economic impacts.”

The same data also provides comfort for those who worry that being able to buy alcohol one additional day per week would lead to an explosion in alcoholism and addiction. “Our estimates indicate that repealing these laws significantly increased beer sales at grocery and liquor stores directly after the policy shift, but these effects disappeared afterward.”

“There is an initial bump in sales, possibly due to the novelty of the policy,” they found. “This impact levels off after the initial month, with no discernible effect on sales after the seventh week.”

As it turns out, the repeal benefited both consumers and vendors while proving the doomsayers wrong. But it was also a net positive for economic liberty as another piece of Prohibition falls by the wayside.

The post Study: If You Let People Buy Beer at Grocery Stores, the Liquor Stores Still Survive appeared first on Reason.com.

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January 27, 2024 beer-articles
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