Hazel’s Beverage World, located at the southwest corner of 28th and Pearl, has long been Boulder’s premier destination for alcoholic drinks of all kinds. This fall, Hazel’s is expanding its inventory to offer more specialty foods, grocery essentials and non-alcoholic beverages.
This shift is a creative response to a major change in Colorado’s adult beverage industry. In November 2022, Coloradans voted — by only 1% — to pass Proposition 125, which allowed grocery stores to start selling wine and higher-proof beer. Colorado had long relegated the sale of these controlled products to specific, licensed retailers, but suddenly eye-catching wine displays were popping up right near the entrances and exits of Whole Foods, Trader Joe’s and Costco. The state’s number of alcohol retailers skyrocketed overnight.
While this change streamlined errands for consumers who no longer had to stop by a liquor store and grocery store before making dinner, it dealt a major blow to independent beverage retailers and mom-and-pop stores.
Bruce Dierking, CEO of Hazel’s, estimates that Hazel’s Beverage World has seen a 30% reduction in foot traffic over the past three years. “It is not an overstatement to say that every single liquor store in the state has had to question their long-term viability,” Dierking said. “And that’s true of Hazel’s too. We’re working very hard to withstand the onslaught, to keep our customers happy and well-served and to adapt.”
Many area beverage stores have adjusted their business models to make up for lost revenue. At 777 Pearl Street, West End Wine, Spirit & Beer—formerly the West End Wine Shop—has expanded its offerings from wine to a wider range of alcoholic beverages, as reflected in the store’s updated name.
Of course, consumer behavior is also subject to change, and certain trends have contributed to the difficult market in which beverage retailers find themselves. Wine sales have decreased. “The world is still adjusting to post-Covid,” Dierking acknowledged. “A lot of people indulged too hard, and now there’s a moderation movement.” Retailers have seen a significant uptick in nonalcoholic alternatives to alcoholic drinks.
“There’s been a huge expansion of the non-alc spirits and cocktails,” said Maximilian Girardin, liquor department manager at Hazel’s. “We’ve got over 130 SKUs, up from around a dozen four years ago.”
Hazel’s has long offered a small selection of specialty foods, particularly from local companies, and that department is currently expanding. The front wall to the right of the entrance is now lined with standing coolers, which are being filled out with both specialty and everyday offerings like cheese, charcuterie meats, milk and eggs. Dierking hopes this will enable the store to recoup some of the clientele who have consolidated their errands to one location. “We want to make it so someone who’s looking for a one-stop solution to pick up a bottle of wine and dinner can do that at Hazel’s,” said Dierking.
More adaptations are still to come. Later this fall, Hazel’s will be rolling out a partnership with Ozo Coffee so that, when the tasting bar isn’t being used for product tastings, shoppers can purchase a cup of coffee or tea to enjoy while shopping. “It’s not going to be a restaurant, it’s not a full-service coffee shop, we’re just adding some things,” Dierking said.
“One of the other creative things that we did is that we canceled our rare whiskey program and started putting all of those bottles in the top shelf so people can walk through and check it out,” said Girardin.
The legal change brought about by Prop 125 has placed long-term alcohol retailers in a difficult position. For a long time, these stores’ business practices were organized around the responsible handling of controlled substances. Suddenly, these businesses were confronted with an onslaught of competitors who were not similarly vetted or adequately trained to handle the nuances of alcohol sales.
“The law for liquor is that it’s a privilege and not a right to sell,” Dierking said. Grocery stores have no age restrictions for shoppers. Many of them have placed elaborate alcohol displays close to the door and have a no-chase policy for shoplifting. For grocery stores in close proximity to high schools, “the amount of minors who have access to alcohol has exploded,” Dierking said. “IDing isn’t the issue, because these kids aren’t even going through the checkout.”
As someone dramatically impacted by the passage of Prop 125, Dierking hopes that Boulder residents think carefully about their consumer choices and choose to support local businesses.
“America works best when small businesses, with their innovation and creativity, are able to get out there and compete,” Dierking said. “Consumers can vote with their dollars.”
I don’t buy wine at the grocery store much. It’s more expensive and they don’t have the ones I like, so Wyatts and my local Berthoud liquor store still get my business!
I voted No on the initiative. Sad but not surprised that it passed. I remember a very small liquor store in my home town that provided a subsistence living to its very old proprietor. No way she could survive the current biz climate.