Maryland’s Grocery Store Alcohol Ban: A 2026 Update on Proposed Changes
If you’ve ever wondered why you can’t pick up a six-pack when you shop for groceries in Maryland, you’re touching on a legal situation that dates back over sixty years.
A Lesson in History: Why the Ban Exists
To understand where we are, we have to look at how we got here. While the 21st Amendment ended National Prohibition in 1933, it didn’t create a “free-for-all.” Instead, the 21St Amendment it gave individual states the power to regulate alcohol however each state saw fit.
Maryland’s specific ban on what we call grocery store sales was born in 1962. The state legislature passed a law prohibiting the issuance of beer, wine, or liquor licenses for “chain stores, supermarkets, or discount houses.”
The goal? Pure protectionism. Independent retailers successfully lobbied the state to protect small businesses from being crushed by the massive buying power of national chains and supermarkets. Aside from a few “grandfathered” locations which is why a handful of stores still sell alcohol, this ban has remained the status quo for decades.
The 2026 Landscape: Senate Bill 75
For years, legislators, big retailers and consumers, have tried to overturn this ban. Most recently, Governor Moore made it a priority in 2025, but the effort stalled due to what I think was mostly due to his fundamental misunderstanding of the legislative hurdles involved. He and the co-sponsors of the proposed bill did not know how entrenched and well organized the opponents of the proposal were and are.
Now, in January 2026, we are looking at Senate Bill 75. On the surface, it’s a repeat of 2024’s proposal, but the details will likely spark intense debate.
The “Food Retailer” Loophole
SB 75 doesn’t explicitly say “supermarkets” or “grocery stores” Instead, it creates a new category called a Food Retailer. To qualify for a license under this bill, a store must:
1. Sell products in at least five of six categories (fresh produce, meat/poultry, dairy, canned goods, frozen foods, and dry groceries).
2. Participate in the Federal SNAP program.
3. Maintain at least 3,200 square feet of space.
4. Meet specific distance requirements from schools and places of worship.
The logic behind these requirements is tied to “Food Deserts.” Proponents argue that if large retailers are allowed to sell alcohol, they will be more likely to open full-service grocery stores in underserved, impoverished areas, thereby improving public health through better food access.
Why SB 75 is a Bad Idea for Small Business
While the “food desert” theory sounds noble, the second half of SB 75 contains provisions that are, frankly, baffling to anyone who understands small business operations.
The Buyout Clause: If a food retailer wants a license but is located within 300 feet of an existing beer and wine store, the retailer can offer to “buy out” the existing license at fair market value. If the small business owner refuses, the large retailer can apply for a new license anyway—and the small business is forced into a potentially ruinous court battle to determine “fair market value.”
Three Reasons for Concern:
• The Valuation Myth: There is no “Zillow” for small, privately held liquor stores. Determining fair market value for a business with informal financials is guesswork.
• Eminent Domain by Another Name: This is essentially a government-sanctioned “taking.” Forcing a sale on an owner who isn’t ready to retire deprives them of their long-term equity and daily income.
• The Cost of Litigation: A small business owner cannot afford to fight a multi-billion-dollar corporation in Circuit Court. Between expert witnesses and attorney fees, a legal fight could cost anywhere from $20,000 to $100,000+.
Looking Ahead
As of early 2026, the House weighed in with another proposal but it’s restricted to parts of Prince George’s County – HB. Is SB 75 a path to solving food inequity, or is it a tool for “crony capitalism” designed to push out the independent entrepreneur?
I’ll be following this bill closely as it moves through the session. In the meantime, I’m looking to hear from proponents of the bill to get a balanced perspective.
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