DENVER —In a hotly contested ballot measure, Colorado convenience stores have won voter approval to stock wine. They came from running behind for three days after the election to soar ahead of the liquor store opposition with a win by 28,000 votes: 1,228,346 to 1,200,163.
But they won't be allowed to use third-party delivery to customers' homes.
When the ballot measure is certified those already licensed to sell beer can begin to offer wine March 1. Their licenses will automatically be converted.
For days the vote was too close to call. That it was such a tight contest puzzled many. Before the election approval of both propositions appeared to be a sure thing. More than 192,000 voters signed petitions to get the wine issue on the ballot and nearly that many signed for third-party delivery.
The Wine in Grocery Stores campaign outspent the opposition by 38 to 1, raising $16 million to the $635,000 brought in by the liquor stores. Convenience store chains contributed but the rest was largely supplied by grocery chains, DoorDash and Instacart. DoorDash alone gave $5.8 million.
Pollsters predicted an easy win for the food retailers.
The first crack in that theory came when voters quickly voted down third-party delivery and many said no to their even selling wine. At the same time the electorate readily approved legalizing psychedelic mushrooms. "Mushrooms okay, but wine not?" exclaimed an astonished voter watching early returns.
The Colorado Licensed Beverage Association predicted the wine initiative would go the same way, despite a slim lead, framing it to the public as a "David versus Goliath" campaign, which, if successful, would drive the "mom and pop" stores out of business.
Then it started to turn sour. The wine supporters first caught up, then shot ahead, rapidly gaining votes and finally amassing a large lead.
Grier Bailey, executive director of the Colorado/Wyoming Petroleum Marketers and Convenience Store Association, said, "Colorado convenience store owners and small grocers look forward to the opportunity to continue to provide age-restricted products in a responsible manner." He said allowing them to sell wine would provide "a small measure of relief" in an era where "regulatory barriers for our members in fuels and grocery become ever greater, and will continue to be more burdensome in the next legislative cycle."
The liquor store industry's argument against third-party delivery apparently did strike a nerve. Those third parties would not do the stringent check to ensure that underage people didn't buy wine, they claimed.
The wine campaign tried to combat that, noting that the proposed law would require customers to upload a photo of a valid driver's license to order delivery and the delivery people would have to scan the ID in front of the person accepting delivery to verify he or she was the right customer.
But Bailey surmised, "The voters didn't believe they would check ID." The pollsters were way off, he said, because they failed to capture the thinking of rural and young voters.
As to driving the liquor stores out of business, that was a bogus claim, said Michelle Lyng, a spokesperson for the Wine in Grocery Stores campaign. "They said the same thing before we were allowed to stock full-strength beer in 2019. But Colorado records show there are ten more liquor stores today than there were then."
Bailey thanked member/partners 7-Eleven, Maverik, and Kum & Go for their support in the battle.
DENVER —Years ago gas stations sold only gas. Then they added convenience stores to enhance their profits. In an ironic twist of fate the gas pump may someday be a thing of the past. Some industry insiders predict the convenience store of the future will sell no fuel.
Colorado already is beginning to roll out the first stores in the new model. Of the five locations Choice Market, a newcomer to the game, has established in the state only one offers fuel. Kum & Go has built a gasless convenience store in Denver. Some 7-Elevens never did convert to sell fuel.
The trend is emerging, industry pros say, because statistics show fewer people are driving and of those who do more are opting for electric vehicles. But the demand for a quick pick-up of food, cigarettes and beer is only growing.
A study showed seventy percent of motorists who fill their tanks enter the convenience store.
The changeover won't happen overnight and no one one expects existing pumps to be removed, said analysts, but as new stores come in the focus is expected to be solely on food and other basic items, according to Mike Fogarty, CEO of Choice Foods.
However it will require changing the customer's mindset and encouraging the purchase of prepared food, he said.
He believes a focus on food is the right direction for the c-store industry. "C-stores should be a destination, not an ancillary stop for fuel. But you have to have products the people want, such as fresh food. It will take a lot of thought, planning, effort and capital to execute."
Taylor Boland, director of communications for Kum & Go, sees the initial effort targeting pedestrians in urban downtown areas.
Although Kum & Go has no plans to halt all fuel operations in its existing stores, Boland say it will make significant investments in foodservice in the future.
"We recognize and understand the trends and changes in the fuel space and how this is expected to change as we plan long-term."
"The key is to understand what your target audience is looking for in terms of food, merchandise, and even price point," Fogarty said. The store must offer a full day's menu, from breakfast to the late-night snacks.
He is also targeting the EV market. His Denver store in the City Park neighborhood wants customers to know upfront how much more fueling up those vehicles will cost, listing the price right below the gasoline price.
But at fifteen cents per kilowatt hour, it's a pretty good rate, says Ben Kipfer, chief operations officer. Some charge significantly more, he noted.
And it is a good draw for the convenience store there, he said. They offer food that is organic, non-GMO, and local. "People love it."
Fogarty says change must come and retailers better not lag behind. The time to start planning is now, he warned.
"It's kind of like the Titanic. You have to start making that turn sooner than later or find yourself in trouble."
DENVER —Car washes are finding that Halloween is a good time to promote their businesses and add profit.
Dutch Car Wash in Aurora held its fourth "Tunnel of Terror" from Oct. 28-31. From 6:30 to 9 p.m. customers could drive with their kids through a blacked-out tunnel surrounded by spooky lights, horror film projections and fog while employees in ghoulish costumes serviced their vehicles.
"Our team loved it," said owner Willy Beumer.
The fright show was free for club members. It cost $19.99 for others.
Tommy's Express in Colorado Springs and Littleton also provided what they called "clean, scary fun" for $20 a vehicle.
LITTLETON —Vic's Express Car Wash launched here recently with a grand opening event that featured a free Top Dog carwash, the first month of unlimited washes for a dollar, pizza, and other giveaways.
The wash offers a 95-foot dual belt conveyor, vacuum stations with color-changing LED lights, and other state-of-the-art devices in a 110-foot building. The facility recycles up to ninety percent of the water used.
COLORADO SPRINGS —Quick Quack held a charity event to help a young heart patient days before opening its new car wash.
The child was born with a medical condition that led to an emergency open-heart surgery and has a long road of cardiologist appointments ahead.
Funds raised will help offset the huge medical costs.
The new car wash offered customers twelve days of free washes to celebrate its arrival.
CANON CITY —Customers and management of an Acorn gas station received a scare recently when what looked like a pressure cooker was found on top of one of the pumps.
The police bomb squad responded. No blast occured. It is believed that a homeless person placed the appliance there. No arrest has been made.
DENVER —Analyst firm Zippia says Colorado convenience store managers earn an average of $51,749 a year. The U.S, average, says Zippia, is $53,358, with managers making the most in New York, New Jersey, California, and Pennsylvania.
DENVER —Dylan von Kleist has been named executive vice president of sales and marketing of Autowash. Dennis Dreezen, CEO, said von Kleist possesses a tenacious drive for innovation and improvement and has a background a a detailing technician that started at the age of 16.
"I'm so excited to have such an amazing industry veteran join our team. Dylan's professionalism and ability to connect, communicate, and converse cannot be overstated. He's a tremendous leader that will explode the Autowash offering."
Autowash has 23 Colorado-based car washes and a massive detail center. It also includes divisions dedicated to software innovation, such as a powerful customer smartphone app, the first of its kind. Dreezen said von Kleist gives the firm the ability to expand nationwide.
Originally published in the December 2022 issue of the O&A Marketing News.
© KAL Publications Inc. 2022