Florida: Inside ABC CEO’s strategy for defeating booze in grocery stores
Source: Tampa Bay Business Journal
Feb 24, 2017
Small business liquor store owners and operators across Florida are unleashing their fourth attack in a row against a bill that would let big box retailers and grocery stores sell liquor, something they argue would obliterate their businesses.
Just like years past when lawmakers addressed the same issue, the little guys have some big muscle on their side. Charles Bailes III is the CEO of Florida-based ABC Fine Wine & Spirits, which owns and operates 131 liquor stores statewide including more than a dozen in the Tampa Bay region.
His strategy for beating the so-called “whiskey to Wheaties” bill is a bit different: appeal to the heartstrings of moms and dads, grandmas and grandpas.
“I’ve been in the business for 41 years and we work really, really hard to keep alcohol out of the hands of minors,” Bailes said.
Bailes points to a trove of articles he’s compiled into a well-cited document. Key parts of reports from Kansas and Washington, where the separation between groceries and booze has been razed by law, are highlighted in bright yellow.
A news report in the Oregonian blames Washington’s privatization on a spike in booster-related liquor sales, where professional shoplifters walk off with sometimes thousands of dollars worth of booze and sell it to others.
Other news reports and a February 2014 study funded through the Robert Wood Johnson Foundation echoed similar findings.
“When I hear these arguments about grocery stores being well-trained in spotting theft, I would say they haven’t read these articles,” Bailes said.
Proponents of ending liquor segregation want to foster more competition and provide convenience to consumers. They say strong anti-theft training mitigates the risk of theft. There’s also modern technology that requires a cashier to scan a person’s identification before selling age-restricted items like alcohol.
None of those arguments, Bailes said, changes the fact that kids can go into a Target, Wal-Mart or grocery store and there is no immediate reason to question why they’re there. A 13-year-old and his friends could simply be in the mood for a candy bar and a soda.
Or they could be looking to swipe a fifth of vodka.
“We don’t let anyone in the store under 21,” Bailes said. “And every single person in a group gets carded. If someone doesn’t have their ID, we don’t sell to any of them.”
His employees are even tough on parents who shop in his stores with their children. Bailes recalled a time when a man he knew walked into an Orlando store with his 19-year-old daughter. The man was browsing wine with his daughter, answering questions about the different varieties. When the man approached the checkout, the clerk refused to sell to him because the girl was underage.
His appeal to the safety of minors is a powerful addition to one being made by small businesses that their livelihoods are in peril. Small businesses make up nearly half of all private sector jobs, according to the U.S. Small Business Administration.
“This is the beginning of the end for [them] if this passes,” Bailes said. “We’re not a small business though so I let them make their argument.
But Bailes claims he’s not worried about his sales if the bill passes. He’s also quick to point out that Publix is on his side. The grocer based in Lakeland is pushing back against the bill, arguing it’s dangerous to minors.
Publix operates liquor stores at some locations; they are attached but are separate from the grocery store.
A version of the bill in the Florida Senate has already moved through all of its committee stops and awaits a full vote when the session convenes March 6. The House version of the bill is waiting to be debated in the Government Operations & Technology Appropriations Subcommittee.