Liquor stores shuffle to meet new state law

Colfax shoppers will soon be able to pick up a bottle of liquor while shopping for bread, butter and milk.

Shawn McAdams, manager of Rosauers in Colfax, said his store will swap video rentals for liquor sales when the new state law brought about by Initiative 1183 kicks into effect in June.

Stores across Whitman County plan changes in reaction to the voter-approved law which allows private stores to sell liquor while state-run stores are closed. The initiative received 52 percent approval from voters in Whitman County and 60 approval statewide.

Three contract liquor stores in the county plan to close while the state-operated store in Pullman was put up for auction last week.

Don Stine, owner of the contract store in Colfax, said he didn’t want to take on the expense of continuing his business. Contract stores have the option of staying in operation, but would have to buy the liquor currently on their shelves from the state.

“I’m too old to start a new business,” said Stine. “With the money I’d have to put out to buy all the liquor we have on stock, it would be just like starting a new business.”

Teresa Knighten, who will be two months short of working 20 years at the Colfax liquor store, said they have in excess of $50,000 worth of stock in the store.

Contracted stores currently stock their shelves with liquor purchased by the state. They are paid on commission, with the state taking the majority to redistribute to cities and counties.

Brian Smith with the state Liquor Control Board said the stores will be able to buy the inventories at the state’s wholesale price less seven percent.

“I’ve heard a lot of people say they voted for it so they could buy liquor late at night or on Sunday,” said Knighten.

Customers will be able to buy hard liquor at any hour stores like Rosauers are open, said Smith.

McAdams said he will stock liquor bottles at the front of the store, where pet food is now stocked. Dog food will be moved to the current cart location inside the store’s front entrance. Carts will be moved across the lobby to where the DVD rental racks are now stationed.

McAdams said a Redbox automated DVD rental machine will be placed in front of the store to replace the store’s rental counter.

Liquor will be protected at the front of the store with locking caps over the lid of each bottle. Clerks will unlock the bottles as they are purchased.

St. John residents will still be able to buy their hooch in town after June. Ken Johnson of St. John Auto Body said he applied to renew his license and plans to buy his stock of liquor.

“I’ll be here,” he said. “But if I was ten years older, I’d probably be getting out, too.”

Johnson remains unsure where he would buy his future stock.

“I guess I’ll have to buy it from Odom or whatever distributor picks up the area,” he said. “If I lose a whole bunch of money next year, I guess I’ll have to think about it again.”

Steve Gossett said he has decided to continue to sell liquor at his store in Tekoa. The Gossett family has been in charge of the Tekoa liquor store since the repeal of prohibition.

“It’s been in the family a long time. And I’m 61 years old, I hope I can keep doing this until I retire,” said Gossett.

Gossett said he will reduce his stock in order to afford to stay open. He plans to send much of his state-owned stock back to the state so they can sell it and he doesn’t have to pay for it.

He shipped back 33 cases Monday that will be sold at the 3rd Ave. liquor store in Spokane.

As for the future, he’s charting an uncertain path.

“There’s so many things that aren’t answered yet,” he said. “Like how much is it going to cost? Am I going to be able to compete with Idaho?”

Gossett was also worried a distributor might price liquor the same for him and his biggest client, C&D’s Tavern, which sits across Crosby Street from Gossett’s store.

Roberta Messinger plans to shut down the liquor store at Rosalia. Like Stine, Messinger said she didn’t want to put out the expense of buying the liquor currently on her shelves.

“I don’t really sell that much. I did it more as a convenience for the town,” she said.

Messinger’s location was convenient for Jim Porter, owner of the Brass Rail Tavern which has a class A license.

“If we run out of something, we just run next door and pick up a bottle,” he said. “Now I don’t know what we’re going to do.”

“June 1 is when it switches over. I’d kind of like to have some information before then,” said Porter.

Rick Persons at the Hyde-Out in Colfax said his beer and wine distributor, Odom out of Spokane, has not nailed down a price or delivery method.

“We aren’t going to run down to Rosauers and pay that price, though,” said Persons.

Pullman’s state-operated liquor store on South Grand was one of 167 put on the auction block by the liquor control board.

The state is accepting bids on the stores it operates through April 20, according to an internet posting on Public Surplus.com.

Bids will be for the purchase of the store operations with successful bidders required to make arrangements with landlords for store sites. The sale terms allow buyers who are unable to extend a lease the option of relocating the liquor store within a mile radius of its present site, pending approval of the Liquor Control Board.

Pullman’s liquor store is listed as number 49 in the state system. As of press time, the store had garnered two bids, with the highest at $2,025.

The internet posting on the sale notes the state will consider bids for its entire store system. As of press time, high bid for the overall system was $380,100 with 31 bids submitted.

According to data posted by the liquor board, the Pullman store has gross sales to date for this fiscal year of $1.65 million. For 2011 fiscal year the gross was $2.7 million. Present inventory at the store is 31,054 bottles valued at $176,187.

Operating profit from last fiscal year was $117,949. Breakage loss listed to date this year is $643.

Pullman’s store normally has four to eight employees.

Bidders on the state-owned stores such as Pullman will have to consider the value of the business in relation to potential marketing of liquor by grocery stores or other outlets which will be allowed under the initiative measure approved by voters.

Dissmores manager Trev McCuaig said his store has yet to decide on whether or not it will sell liquor. He said they need to hear better answers as to what the taxes and regulations will be if they do decide to stock spirits.

Safeway said in a press release earlier this year it will sell liquor at all its stores in Washington, including Pullman.