Maryland is one of three states that bans the sale of both beer and wine in retail grocery stores.[1] Since 1978, Maryland state law has prohibited grocery stores from obtaining a liquor license.[2] Limiting alcohol sales to specialty liquor or package stores costs the state an estimated 754 potential retail jobs, $214.4 million in potential alcohol sales, and $31.6 million in potential tax revenues.[3]

However, times are changing as influential Marylanders push for removing the ban and allowing the sale of beer and wine in grocery stores. Even Governor Moore expressed such a sentiment as he said, “it’s time for a change. Lifting this ban puts people first and makes us more competitive. I look forward to working with our legislative partners to pass this overdue change.”[4]  This is not the first-time lawmakers in Maryland have attempted to overturn the 1978 ban. In 2022, a the General Assembly proposed an amendment that would allow a retail grocery store to obtain a license to sell beer and wine.[5] Supporting the proposed amendment, the Mayor of the City of Baltimore expressed that this change “w[ould] complement [separate State and local efforts to incentivize grocery establishments to open locations in low income areas] because beer and wine licenses will make grocery retailers more economically viable.”[6]

In addition, many supporters “see the change as an economic benefit, an employment and revenue generator for the state and a potential solution to food deserts.”[7] According to a November 2024 study, it is estimated that “state and local governments will receive nearly $13.0 million in additional business and personal tax revenues . . . resulting from the increased employment and economic activity.”[8] The JDA Study compared four other jurisdictions that recently reduced their restrictions on beer and/or wine sales in grocery stores, and found that all four jurisdictions “experienced more economic activity and an overall increase in sales and tax revenue.”[9] Overall, the study found that if the ban was uplifted, “retailers [would] earn new revenues with which to hire new workers, [and] consumers gain convenience and greater access to lower-priced products[,]”[10] as Maryland package stores have enjoyed an uncontested monopoly on alcohol sales.[11]

However, not everyone is positive about the potential return of beer and wine sales to grocery stores, as reflected in the withdrawal of the 2022 proposed amendment. Parties were concerned that allowing beer and wine sales in grocery stores would lead to “[e]xcessive drinking [which] in turn leads to increases in violence, criminal activity, domestic violence, and child maltreatment.”[12] In addition to the health and safety risks involved with drinking, there may be a negative impact on the profitability of package stores and mom-and-pop shops.[13] With smaller, independent liquor stores already struggling to compete with large retail liquor stores, these mom-and-pop shops argue that they will essentially be knocked out of the business.[14]

In sum, supporters of the sale of beer and wine in grocery stores are excited about the prospect of lower, more competitive prices and the significant economy boost that arises from allowing grocery stores to obtain Class A liquor licenses.[15] As the 2025 legislative session progresses, Marylanders should watch to see whether beer and wine will be available soon at their local grocer.

---

Chloe Curtis is a second-year student at the University of Baltimore School of Law. She received both a Bachelor of Science in Finance and a Bachelor of Arts in Political Science from the University of Alabama. Chloe currently serves as a first-year staff editor for the Law Forum and as a Law Scholar for Property. After graduation, Chloe plans to pursue a career in corporate transactional work.

[1] See Shephert, K., Gov. Moore Backs Adding Beer and Wine to Maryland Grocery Stores, The Washington Post, (Dec. 11, 2024), https://www.washingtonpost.com/dc-md-va/2024/12/11/maryland-beer-and-wine-sales/.

[2] See Md Code Ann., Alcoholic Beverages and Cannabis § 4-205 (West 2024).

[3] See The Potential Benefits of Allowing Beer and Wine Sales in Supermarkets, Grocery, and Convenience Stores in Maryland (2024 Update), John Dunham & Associates (JDA) (Nov. 12, 2024), https://irp.cdn-website.com/cf5489a9/files/uploaded/BeerWine_EconomicReport_Dunham.pdf [hereinafter JDA Study].

[4] Wes Moore (@GovWesMoore), X, (Dec. 11, 2024, 2:04 PM), https://x.com/GovWesMoore/status/1866922117024915814?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1866922117024915814%7Ctwgr%5E50ec8ad8e199c4a69a7dcde547526e25156c8a99%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.washingtonpost.com%2Fdc-md-va%2F2024%2F12%2F11%2Fmaryland-beer-and-wine-sales%2F&mx=2.

[5] See H.B. 506, 444th Gen. Assemb., Reg. Sess. (Md. 2022).

[6] S.B. 603 – Constitutional Amendment – Beer & Wine Licenses – Retail Grocery Establishments, 444th Gen. Assemb., Reg. Sess. (Md. 2022) (statement of Natasha Mehu, Director, Office of Government Relations OR Brandon M. Scott, Mayor, City of Baltimore).

[7] Bryan P. Sears, Supporters Optimistic This is The Year for Beer and Wine in Grocery Stores, Md. Matters, (Dec. 11, 2024), https://marylandmatters.org/2024/12/11/supporters-optimistic-this-is-the-year-for-beer-and-wine-in-grocery-stores/.

[8] See JDA Study, supra note 3.

[9] Id.

[10] Id.

[11] See id. (explaining that the current regulations were “designed to protect package stores from competition”).

[12] S.B. 603 – Constitutional Amendment – Beer & Wine Licenses – Retail Grocery Establishments, 444th Gen. Assemb., Reg. Sess. (Md. 2022) (statement of National Council on Alcoholism & Drug Dependence – Maryland Chapter).

[13] See id.; see also JDA Study, supra note 3.

[14] See Shephert, supra note 1.

[15] See Shephert, supra note 1; see also JDA Study, supra note 3.