Understanding the Delay in Maine's Agency Liquor License Selections

As we reach the mid-point of August, it’s becoming increasingly clear that the State of Maine is unlikely to announce a second round of agency liquor license selections for 2024. For those familiar with the usual process, this may come as a surprise. Typically, the Bureau of Alcoholic Beverages and Lottery Operations (BABLO) announces new opportunities for retailers to apply for agency liquor store licenses twice a year—once in the January/February timeframe and again in July/August​. However, with no announcements made so far, it appears that this pattern will not hold true for this year.

The Standard Licensing Process

To understand the significance of this delay, let’s briefly review how the agency liquor license selection process typically unfolds. BABLO holds the sole authority to determine which municipalities are opened for new agency liquor store licenses. The decision is based on several criteria, including population formulas and strategic opportunities to increase the state's spirits business. Once a municipality is opened for licensing, interested businesses must submit their applications by a specified deadline. The process includes inspections, public hearings, and finally, the awarding of licenses to qualified applicants​.

This year, however, something different is happening.

Why No Second Round?

The ongoing negotiations between the State of Maine and Pine State Trading Co., the sole bidder and conditional winner of the state’s wholesale spirits distribution contract, are likely causing the delay in the license selection process. Earlier this year, Pine State was announced as the highest-ranking bidder for the state’s spirits distribution contract under RFP #202309200. Although they have been conditionally awarded the contract, the finalization of this agreement is still pending.

This contract holds significant weight because it dictates the terms of spirits distribution across the state, impacting everything from pricing to availability in local stores. Any changes in the number or location of agency liquor stores could potentially affect the terms of this contract, complicating negotiations further. Given the importance of this contract to Maine’s liquor distribution system, it’s likely that BABLO has chosen to hold off on making any new licensing decisions until the contract is finalized.

What to Expect Moving Forward

Until the state and Pine State Trading Co. finalize their contract, it’s unlikely we will see any movement on new agency liquor store licenses. Retailers hoping to acquire these licenses may have to wait until these crucial negotiations are resolved. As we move towards the end of 2024, we will keep an eye out for updates from BABLO. Once the contract with Pine State is secured, we are likely to see a resumption of the regular licensing schedule. For now, patience is key as the state works to ensure that any new licenses issued are aligned with the broader goals of Maine's alcohol distribution strategy.