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The new liquor licenses being pushed by Cumberland Farms would allow the chain, subject to local municipal approval, to sell beer and wine at 199 of its 206 convenience stores throughout the state that currently lack a beer and wine retail license. Because those licenses are governed by the same law (M.G.L. c.138 Section 15) that is used to calculate the minimum number of marijuana retail outlets, the Cumberland Farms proposed ballot question could increase minimum marijuana store counts in many communities.

Framingham is in the process of granting local approval to six marijuana retailers. Framingham also happens to host one Cumberland Farms store. If the Cumberland Farms store is eventually allowed a beer and wine retail license, Framingham will have 31 carry-out licenses and will increase its minimum marijuana retail store count from six to seven.

As an example, data from the Massachusetts Alcoholic Beverage Control Commission shows that Framingham has a total of 30 carry-out licenses — 21 liquor beverage stores, 4 convenience stores, 2 gas stations, 2 supermarkets, and one artisan shop that infuses liquor into chocolate sold in its retail outlet.

How ballot question could end up adding more pot licenses

In addition to creating the new beer and wine license for food stores, the Cumberland Farms ballot question would lift the cap on the number of licenses an operator could hold. If the question survives a legal challenge from the Mass. Package Stores Association, wins at the ballot, and food stores ultimately gain approval for new beer and wine licenses, many communities could end up with more marijuana stores.

The minimum number is set at “20 percent of the number of licenses issued within the city or town for the retail sale of alcoholic beverages not to be drunk on the premises,” rounded up to the nearest whole number. For a community with 18 liquor licenses, that would mean four marijuana stores must be allowed.

CUMBERLAND FARMS is pushing a 2020 ballot question that would create a new beer and wine liquor license for food retailers, an initiative that could also have an impact on the number of marijuana stores opening up across the state.

Under the existing cannabis law, communities must allow a minimum number of marijuana retail stores. Communities can only ban marijuana stores through a municipal election.

Cumberland Farms operates 939 convenience stores, 206 of them in Massachusetts. In July 2019, the company announced it was being acquired by British C-store chain EG Group (989 stores). Combined, EG Group, who ranks #13 on the 2019 Convenience Store News Top 100, and Cumberland Farms, who ranks #14, will catapult to the #9 position. Only 7-Eleven, the #1 C-store operator, has more stores in Massachusetts; 203 according to their web site.

Massachusetts law limited retail liquor license ownership to three licenses per owner. That wasn’t a bad deal for liquor store owners, but supermarket chains couldn’t sell alcoholic beverages across their full system. In 2006 the supermarket chains squared off against the Massachusetts Package Stores Association to challenge the law with a referendum question. The Sale of Wine by Food Stores Initiative, also known as Massachusetts Question 1, was defeated at the November 7, 2006 ballot. The grocery stores licked their wounds and returned to the field of political battle in 2011 with a new proposed question. This time the sides worked out a compromise with the state legislature. That measure, passed by a 147-5 vote, gradually increased the number of liquor licenses that can be held by a single company by two additional licenses in 2012, two in 2016 and two more in 2020. Stated differently, three became five, five became seven, and on January 1, 2020, seven becomes nine. Beer and wine wholesalers and supermarkets agreed not to push a fresh challenge to the store count until 2021 at the soonest. Convenience stores were not part of that battle or the ensuing truce.

Marijuana License Numbers and Liquor Licenses are tied together in Massachusetts and Cumbys Knows That

Cumberland Farms has 206 stores across Massachusetts, 7 that sell beer and wine, the current state limit. 7-Eleven boasts 203 stores, five that sell beer and wine. Jeff Lenard, Vice President, Strategic Industry Initiatives for the National Association of Convenience Stores indicates there are 3,279 C-stores across the Commonwealth, 1,866 of which sell motor fuels. Compare that count to 3,056 carry-out liquor licenses as reported by the ABCC. Admittedly, quite a few of those ABCC licenses are held by convenience stores, but a review of ABCC license data shows numerous convenience store chains that could seek to increase their license count if Cumberland Farms has its way.

Cumberland Farms’ proposed new liquor licenses will allow it, subject to local municipal approval, to sell beer and wine at 199 of its 206 C-stores throughout the state that currently lack a beer and wine retail license. Because those licenses are governed by the same law (M.G.L. c.138 Section 15) that is used to calculate the minimum number of marijuana retail outlets, Cumberland Farms’ proposed ballot question could increase minimum marijuana store counts in many communities – could, not will.

The legally mandated minimum marijuana retail store count is equal to “20 per cent of the number of licenses issued within the city or town for the retail sale of alcoholic beverages not to be drunk on the premises…” Translated into simple terms, with minor exception, 20% of the number of package stores and beer and wine retailers (C-stores and supermarkets) rounded up to the next whole number. The minor exception includes food companies that infuse alcohol into food items sold on premise – chocolates, liquor-infused cakes, etc. Generally, many of these carry-out out liquor licenses are for full-inventory package stores.