Published: November 03, 2009 11:06 pm      

Battle over alcohol sales coming

Mayor, sheriff line up behind Soupley’s owners

Soupley’s Liquors co-owners Kyle and David Rayl can count Kokomo Mayor Greg Goodnight, Howard County Sheriff Marty Talbert and Howard County Commissioner Tyler Moore as allies in their battle to keep Indiana’s alcohol regulations unchanged.

But Indiana’s package liquor store owners are expecting a legislative battle come January, as other retailers push for Sunday alcohol sales and an expansion of places where cold beer can be sold.

The two big lobbying groups currently leading the charge are the Indiana Association of Beverage Retailers, which represents package stores like Soupley’s, and Hoosiers for Beverage Choices, which represents grocery, convenience and big-box stores.

Both groups lobbied hard this summer, when a study committee of Indiana General Assembly legislators met to take up both issues.

The panel voted 7-4 against recommending a change to Indiana’s Sunday sales ban, and voted 11-0 in favor of keeping cold beer sales restricted to package stores.

Kyle Rayl, who owns 10 Soupley’s stores, all in Howard County, said there’s a public safety interest in keeping liquor sales regulated, and said Indiana’s regulations “are under attack from out-of-state interests.”

“Not only do they want Sunday sales, but they also want to sell cold beer. Cold beer at convenience stores is a dangerous mix,” Rayl said.

Talbert, who along with Goodnight and Moore attended a press event hosted by the Rayls Tuesday, said he’s spent enough time in a certain neighboring state to dislike cold beer in convenience stores.

“I’ll tell you what, you see a lot of people buying single cans, go out to their vehicles and pop them open,” Talbert said. “I just don’t think we need to do that in Indiana.”

Goodnight said the issue could be looked at as one of fairness. Package stores are protected by current regulations, but they are also prevented from selling many items found in grocery stores.

“[Rayl] could have approached it by saying, ‘If those establishments can sell cold beer on Sunday, then fine, let us sell Twinkies. I like the fact he wants true separation,” Goodnight said.

And Moore said the fact liquor stores are locally owned is a factor.

“The big-box stores are just pushing for sales, never mind what it does to your industry,” Moore said. “I’m all in favor of keeping regulations in place to protect [package stores].”

Rayl said he favors further regulations, including forcing other stores to keep alcohol in special areas, only to be sold by clerks over 21 years of age. He said Indiana is one of 17 states where consumers can purchase spirits at grocery stores.

Other retailers have countered with arguments that Indiana’s regulations prevent true competition, and allow package stores to charge higher prices.

This summer, many grocery stores urged customers to sign petitions, claiming expanded cold beer sales would lower prices and generate more tax revenue for the state.

Hoosiers for Beverage Choices also said Indiana is one of 13 states to allow restaurants and bars — but not retailers — to sell alcohol on Sundays.

Indiana, the lobby claims, is the only state to limit cold beer sales to package stores.

Rayl said package stores don’t think they’d make enough money on Sunday sales to justify the cost of staying open the additional day.

Rayl also said Indiana’s laws were carefully thought out in the wake of Prohibition.

Prior to Prohibition, he said, unregulated alcohol sales led to societal problems, leading in turn to the push for Prohibition.

“Prohibition didn’t work, but they saw the need to sell alcohol in a regulated environment. The more alcohol is regulated, the less these problems will occur.”

• Scott Smith is a Kokomo Tribune staff writer. He may be reached at (765) 454-8569 or via e-mail at scott.smith@kokomotribune.com