Panel OKs bill allowing Arkansas grocers to sell wine from any winery

A bill to allow grocery stores, including Wal-Mart Stores Inc. and Kroger Co., in wet counties to obtain permits to sell wine from any winery cleared the House Rules Committee after several hours of debate Wednesday.






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Senate Bill 284, by Sen. Bart Hester, R-Cave Springs, was in part the product of negotiations involving the Arkansas Beverage Retailers Association, Wal-Mart and some Altus-area wineries.

An amended version of the bill -- which was unavailable to the public on the Legislature's website until after the meeting ended -- heads to the House for further consideration.

Rep. Jon Eubanks, R-Paris, the House sponsor of SB284, said the bill would allow for freer markets. Only small farm wines are now allowed to be sold in grocery stores. Consumers would like a wider selection, he said.

"Retail package stores are actually just wanting to protect their market, and I understand that, but I don't know that it's the purpose of government to do that," he said. "I believe in free enterprise and I think that -- to some degree -- I think that we should open this up so the consumers will have availability of the brands that they would like to purchase."

But some beverage retailers, upset about what they have called a backdoor agreement, formed their own association to oppose the bill -- the United Beverage Retailers of Arkansas.

Eubanks confirmed during Wednesday's committee meeting that there was a deal between grocery stores and liquor sellers represented by the Arkansas Beverage Retailers Association. He said the governor's office would document the agreement.

Members of the protesting United Beverage Retailers of Arkansas said some liquor stores agreed not to oppose the legislation if the grocery stores wouldn't participate in local-option efforts.

The resulting legislation -- SB284 -- would harm their industry, members said, adding that grocery stores wouldn't have to comply with laws that require liquor stores to be at least 1,000 feet from a church or school.

"Senate Bill 284 will completely disrupt [the] Arkansas wines and spirits industry, costing local communities jobs and revenue, and it's not supported by the vast majority of wines and spirits retailers," said John Crow, a member of the United Beverage Retailers of Arkansas who owns a liquor store.

But Michael Lindsey, director of public affairs for Wal-Mart, said the company's stores are not going to turn into wine stores, and that the liquor stores would continue to have a broader selection.

"We're still going to be grocery-first," he said. "We're not going to be turning aisles and aisles of our stores into selling wines."

Wednesday's meeting was attended by more than 100 people.

Some members of the Post family testified against the bill. Post Familie Vineyards is located in Altus.

Andrew Post said the bill was "loaded with pork" to "try to get people on board."

Under the amended bill, half the grocery store wine permit fees would be paid to Arkansas wine producers and half would go toward a wine tourism facility in Franklin County. Eubanks' district includes a portion of Franklin County.

But Mary Jane Cains of the Mount Bethel Winery in Altus said the agreement was a good deal for Arkansas wineries.

"There are a lot of people that complain because they want more choices, and that's the way the world is moving," she said. "It's kind of like when digital cameras came out. Who was going to go save the makers of Kodak film? You can't stop progress."

A Section on 02/23/2017

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