Polis Signs Bill Blocking New Grocery Store Liquor Licenses in Colorado
Governor Jared Polis has signed a new bill into law that will prohibit state and local authorities from issuing additional liquor-licensed drugstore (LLDS) permits—effectively freezing the ability of grocery stores to obtain new licenses to sell beer, wine, and spirits. The measure, titled Senate Bill 25-033, passed with overwhelming support in the Colorado General Assembly and is set to take effect on August 6.
The legislation won’t affect grocery stores that already hold LLDS licenses, but it halts future expansion—impacting new store locations or chains seeking to add alcohol sales. The law comes in response to growing concerns from independent liquor store owners, who say the expansion of alcohol sales in grocery stores has hurt their businesses. Since 2023, grocery stores have been allowed to sell wine, following a voter-approved ballot measure, which built on a 2016 law permitting sales of full-strength beer.
Currently, 36 grocery and convenience stores in Colorado are licensed to sell hard liquor. This bill makes that number permanent.
Despite signing the bill, Governor Polis expressed strong reservations. In a written statement, he criticized the law for limiting consumer choice and locking in protections for existing businesses at the expense of new market entrants. “While I respect the legislature’s strong support and small business concerns, I would have preferred a solution that didn’t eliminate an entire license type,” Polis wrote.
Consumer advocacy group Coloradans For Consumer Choice Coalition also voiced disappointment, saying the current system strikes a better balance between consumer access, safety, and business viability.
Polis concluded by encouraging continued collaboration between lawmakers and stakeholders to modernize Colorado’s liquor laws in a way that prioritizes consumer interests.
