"We do not favor grocers over smaller agencies," Mullins said. The big boys could sell more liquor, making more money for the ultimate benefactor of liquor profits, JobsOhio, the state's private, nonprofit economic-development agency, she said. With no contracts available for now and the chains obtaining them from markets, Williams wondered if Liquor Control was trying to put small retailers out of the liquor business. We'll lose the Worthington crowd that will stop at Graceland." "We've always considered ourselves the state liquor agency for Clintonville," Williams said, standing in a large room among a sea of shelves and coolers featuring myriad brands of liquor. The market is about 3 miles from Graceland. Williams and her husband, Scott Bowman, own Weiland's Market at 3600 Indianola Ave., which has had a liquor-agency contract since 2006. With its new contract, the Kroger at Graceland Shopping Center is encroaching on her turf, Jennifer Williams said. It was unclear why it paid a Port Clinton seller only $100. It paid various amounts, depending on how much it wanted a contract and on the success of the business, experts said. The records show that Kroger had nine transfers in central Ohio besides Huffman's and more in the rest of the state. Giant Eagle has had three transfers in Ohio since 2013, one in Canton and two in central Ohio, for a total of about $3.2 million. Smaller retailers make up the bulk of the contract transfers. Ekadant LLC is paying $309,000 for the Wine Guy at 1383 E. Kroger's offers contrast with other operations that actually buy the inventory of stores, sometimes the store itself, as well as the agency contract. Those are listed on the "asset purchase agreement" attached to the paperwork sent to Liquor Control.Įach time, Kroger lists that it's buying "One (1) Case of Miller Light Beer, One (1) Small Gondola Shelf Good Will" and the agency contract.Īsked to explain the list, Jarrell said, "It wouldn't be prudent to discuss details of any particular asset purchase agreement." "You have to buy the business or some asset of the business," he said. State liquor contracts cannot be bought and sold, Mullins said, although the asset purchase agreements that accompany the contracts clearly call the parties "buyer" and "seller." Other than Huffman, no market owner contacted would talk about transferring its agency contract. Ryan Huffman has said that with the Kroger payment, his family will expand other offerings, such as beer and wine. The 19 transfers involving Kroger are out of a total 42 since 2013, according to Liquor Control records. "A contract liquor agency inside a Kroger provides an added convenience customers are able to do their grocery shopping and purchase liquor without making two trips." "We are investing in capital improvements, renovating existing stores and constructing new stores," said Jennifer Jarrell, spokeswoman for Kroger's Columbus division. It was the most anyone paid for a single contract in that period. It was one of 19 contract transfers the Cincinnati-based chain has obtained throughout the state in the past 21/2 years. Kroger came to Huffman's rescue in June - to the tune of $3 million. Owners of Huffman's Market, the existing contract-holder a mile down Tremont Road from the Giant Eagle, said the competition could put their store out of business. The last contract was awarded in February - to the Giant Eagle store in Kingsdale Shopping Center in Upper Arlington.Ĭity officials opposed it, saying the area didn't need a second liquor agency. The applicant the division thinks would be the best fit for the area wins the contract, a supply of liquor and 6 percent of sales.
When the Ohio Division of Liquor Control sees a need for a new liquor agency in an area, it posts a notice that it's accepting applications, said Matt Mullins, spokesman for the state Department of Commerce, which oversees the Liquor Division. You can't sell the hard stuff in Ohio without the golden ticket of an agency contract. It's a combination of a temporary hold on state liquor-agency contracts and the grocery giants paying a premium to get existing contracts from smaller retailers. It's not sloppy accounting, or the world's biggest tailgate party. Kroger has spent almost $26 million on 19 cases of Miller Light beer since 2013.
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