The backers of a November ballot initiative to allow wine and full-strength beer sales in Colorado grocery stores said Friday they are halting their petition drive and instead will work to operate under a compromise law signed by Gov. John Hickenlooper in June.

“With the legislation now in affect, we are working diligently to figure out how this law will impact both Coloradans and grocery stores,” said Georgie Aguirre-Sacasa, campaign manager for Your Choice Colorado, in a statement. “While the bill isn’t perfect and we continue to believe that Coloradans deserve better, it does change the old status quo and will allow people more access to the Colorado craft beer and wine that they love.”

She said the campaign had collected 85,000 signatures – about half what petition experts say is necessary to ensure ballot access – before deciding it would claim victory under the new legal framework, which went into effect on Friday.

Had it passed, the proposed ballot measure would have let grocers sell wine and full-strength beer (they can sell 3.2-percent beer now) starting a year from now. The new law, however, also allows grocers to sell liquor, but it’s phased in over 20 years and requires chain grocery stores to buy out liquor stores within 1,500 feet, in most instances, before expanding sales to a new location.

“Moving forward, Colorado’s grocery stores will continue to sell the products and services that Coloradans want,” Aguirre-Sacasa said. “Thank you to all those who supported changing the law in favor of more shelf space for the Colorado products we love.

The organization’s chief opponent cheered the announcement.

“Our primary concern has been to ensure that local businesses and craft producers can still thrive in Colorado. We are pleased that the grocery stores did the right thing,” said Jennie Peek-Dunstone, spokeswoman for Keep Colorado Unique. “With the withdrawal of their initiative, we can move forward to implement the historic compromise without the cloud of an initiative that as Gov. Hickenlooper said would ‘irreparably harm independent liquor stores and craft producers throughout Colorado.'”

The ballot initiative, in the end backed primarily by King Soopers and Safeway, had been part of a complex set of competing interests – including grocery store chains, independent liquor stores, craft brewers and consumers – attempting to influence changes to state liquor laws this year.

Hickenlooper wrestled with the decision but ultimately signed Senate Bill 16-197 on June 10, the last day he had to take action on legislation.

The former brewpub owner said he sympathized with local brewers and liquor store owners whose business could suffer as retail giants scoop up sales and select which brands get the most exposure.

“The liquor store owners have invested, in many cases, their life savings in their businesses knowing what the laws are,” the governor said about a week before signing the legislation. “Are we gonna take away a significant part of what that liquor store owner has built up just by changing the law?”

But large grocers had threatened to steamroll the legislative compromise by taking the question directly to voters, leading Hickenlooper to speculate on the possible futility of holding out for a better compromise.

“On the other side, this is going to happen every two years,” he wondered. “Is it always going to be one battle after the next?”

Your Choice Colorado reported raising $4,733,657 – including about half that in in-kind donations – through June 22 and had $1,725,325 in the bank. The opposition, Keep Colorado Unique, reported raising $3,145,552 through the same date and had $19,049 on hand.

– ernest@coloradostatesman.com