Somerset gets some advice on how to handle private liquor licensing

Posted 5/27/22

PRINCESS ANNE — A popular Princess Anne wine retailer wants to be in line for the opportunity to sell hard liquor next year — but he doesn’t want that line to be so long that nobody …

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Somerset gets some advice on how to handle private liquor licensing

Posted

PRINCESS ANNE — A popular Princess Anne wine retailer wants to be in line for the opportunity to sell hard liquor next year — but he doesn’t want that line to be so long that nobody makes any money.

The General Assembly sent to Gov. Larry Hogan legislation that abolishes Somerset County’s dispensary system effective Jan. 1 and creates a process for liquor sales to be managed by the private sector. By not signing House Bill 671 the act will become effective without his signature per the Maryland Constitution.

Currently there are only three liquor stores operated by the Liquor Control Board, located in Princess Anne, Crisfield and at the Worcester County line.

To replace them a new Class A beer, wine and liquor license would be available at a cost of $5,000 per year. The Board of License Commissioners, which oversees alcoholic beverage licenses, would handle their issuance with new applicants subjected to a public hearing.

While establishments “commonly known as a drugstore” are expressly prohibited in the legislation from obtaining a Class A license, there is no cap on the number that can be issued. Earlier this year County Commissioner Randy Laird estimated that at most five licenses might be granted, but there was no way to know for sure.

That uncertainty is a concern for Junior’s Wines owner Mahesh “Junior” Brahmbhatt who said the county should consider some way to limit the number of licenses.

While meeting with the County Commissioners earlier this month, he pointed to New Jersey where liquor licenses are issued based on a formula tied to population, for example, municipalities can award one license to a restaurant or bar for every 3,000 residents.

“We don’t have that many people,” Mr. Brahmbhatt said. “It’s why you have three liquor stores in the whole county.”

Over the years the business model for Junior’s Wines has changed to limit or discontinue what a quick mart might sell like sodas, candy, cigars and cigarettes to focus on wine. He’s learned how far customers will travel to save money on their purchases, whether it’s by the bottle or case, and he knows that the hours of a wine shop don’t need to be as long as a convenience store which helps keep his prices down.

From his experience several years ago in another state when he sold liquor, Mr. Brahmbhatt said he understands the investment required to carry the additional lines of products. He said, “I’m doing my homework” about wholesale and retail prices.

“You need a lot of funding,” he said, noting that he might need as many as 75 cases of Jim Beam “at one time.”

He said one or two super stores could enter the scene and be granted licenses and drive all the business. “It will be very hard” for the small stores, he said. “The Mom & Pop stores will be gone.” “I’ve been in that business before, and I know the pain.”

President Craig Mathies Sr. did not think more than three stores would apply for the new license, but no one knows for sure especially for the first year. But with proper planning the county could benefit from the change, Mr. Mathies said, adding that Mr. Brahmbhatt’s remarks are things “we may have not considered.”

Mr. Mathies didn’t know when a discussion about the liquor licenses would occur, but he’s certain Mr. Brahmbhatt’s “wisdom” will be considered adding that he could be called on again.

One other point Mr. Brahmbhatt asked to be considered is the rule governing the transfer of a license and whether a store owner would be allowed to do that and charge more than the $5,000 new license fee.

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