How to Open a Tobacco and Beer Store

An expansive, affordable inventory sets a tobacco and beer specialty retailer apart from a consumer's other options, such as convenience stores. Choosing an accessible location for your store is essential, as are unique products. Abiding by all state and local laws is also essential, so obtain a license to sell beer and tobacco products from your city government and ensure all employees meet established age requirements, which vary from state to state. In Kentucky as of this article's publication, workers of any age can sell tobacco products, but in Washington state, minors must be supervised by an adult employee when selling tobacco. Alcohol sales are similarly regulated.

Licensure and Planning

Step 1

Obtain a license to sell beer for off-site consumption from your state's department of alcoholic beverage control, or similar agency. Many states, such as Virginia, require stores that sale packaged liquor and beer to train their employees and file documented proof of that training with the state government.

Step 2

Obtain a license, if necessary, to sell tobacco products. Mississippi, for example, does not require any licensure to sell tobacco products. Acquire a business license from your city hall or chamber of commerce, then incorporate your retail store as a limited liability company to enjoy tax benefits.

Step 3

Write a business plan that details your concept for the store, how you will execute it and how the store will become profitable. Describe how you will finance your store, how many employees you will need and the type of inventory you will keep. A store devoted to beer and tobacco products needs a wide array of products that aren't available at other stores, so detail how you will source your inventory as well.

Step 4

Lease, build or buy a retail storefront in a high-traffic area, then focus on making your store accessible to consumers. If you are operating a small shop in an outdoor mall or similar venue, a window display will entice customers traveling by foot. Customers traveling in a vehicle will look for a specialty shop that has drive-up window service and ample parking.

Operations and Promotion

Step 1

Open an account with beer and tobacco wholesalers to schedule regular product delivery to your store. Whenever possible, use promotional materials such as posters and calendars to advertise the products you have for sale -- and to promote the store itself. Suppliers often market-test new products before releasing them to a wider audience. If you are given the opportunity, participate in these trials to provide your customers with a richer and deeper inventory selection.

Step 2

Advertise your products and offer discounts and specials to entice new customers, but ensure your advertising campaign follows all state and federal laws. Though the Federal Trade Commission regulates tobacco and alcohol advertising across the United States, individual states and municipalities might have further strictures. Consult your state's department of alcoholic beverage control or department of public health.

Step 3

Monitor consumer trends to determine which varieties of beer and tobacco are likely to sell well, then use that data to make inventory decisions. Consumers visit specialty retailers because they want to buy products, such as regional and small-batch beers, not carried in conventional stores.

Things Needed

Beer-sales license
Tobacco license
Beer and tobacco sales training program
Business license
Business plan
Retail storefront
Wholesaler contract
Promotional materials
Advertising plan

References (7)

Resources (3)

About the Author

Ben Taylor has been writing since 2005 and has had work published by WEKU-FM and West Virginia Public Broadcasting both on air and online. Taylor holds a Master of Arts in English from Eastern Kentucky University and currently teaches composition and ESL there.

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Saturday, April 12, 2014