Baltimore, MD - Mar. 4, 2026 - Allowing grocery stores in Maryland to sell beer and wine could increase economic activity, generate millions in state revenue and have no lasting negative impact on independent alcohol retailers, according to a new analysis from the Jacob France Institute at the University of Baltimore.
The study was released as supporters of expanding alcohol sales rallied on Lawyers Mall in Annapolis, urging lawmakers to pass legislation that would permit grocery stores to sell beer and wine.
Maryland is one of only four states that currently prohibit any alcohol sales in grocery stores.
Allowing beer and wine sales in grocery stores has the potential to increase retail wine and beer sales in Maryland, thereby generating jobs and tax revenues for Maryland,” said Richard Clinch, PhD, the Director of the Jacob France Institute and the author of the study, via press release. “While the economic and fiscal benefits of allowing beer and wine sales in grocery stores is real, it comes at the cost of increased competition for existing beer, wine and liquor retailers. However, these costs will be offset by the expanded retail options and potentially lower costs for Maryland residents from the change and, based on the experience of other states that have permitted grocery store sales, the beer, wine and liquor retailers sector can be expected to recover.
The analysis, commissioned by the Maryland Retailers Alliance (MRA), estimates that permitting grocery store sales would increase beer and wine sales volume in Maryland by 5% to 7%.
As a result, state government revenues could rise between $4.7 million and $6.6 million annually, the report found.
Researchers attribute part of the projected revenue increase to Maryland residents who currently cross state lines to purchase alcohol in grocery stores elsewhere.
The report also examined long-term employment data in states that have recently expanded alcohol sales to grocery stores. In Oklahoma, Pennsylvania and Tennessee — the three states with available multi-year data — alcohol retailer employment in 2024 was higher than before laws allowing grocery store sales were enacted, the study found.
The findings challenge concerns from some independent liquor store owners who argue that expanded grocery store sales would hurt small businesses.
The institute concluded that while existing beer, wine and liquor retailers may face increased competition, any negative effects are likely to be manageable and temporary, with the sector expected to rebound over time.
Public opinion appears to favor the change. According to the most recent Maryland Now statewide poll, 80% of likely voters support allowing beer and wine sales in grocery stores.
Supporters say the change would provide greater convenience for consumers and could help attract full-service grocery stores to underserved communities.
“Marylanders want the same convenience that residents of other states have,” said Cailey Locklair, president of the Maryland Retailers Alliance (MRA), via press release. “Grocery stores operate with some of the smallest profit margins in the retail sector, and this change would go a long way toward attracting and retaining stores in our communities.”
The General Assembly is once again considering legislation that would permit grocery stores to sell beer and wine.
wmakers have debated similar proposals in past sessions, but the issue remains unresolved.
