The campaign to allow grocers to sell hard liquor, currently the province of the Oregon Liquor Control Commission, has halted its efforts.
Filings with the Oregon secretary of state show that Oregonians for Competition raised $3.5 million last year and this year and has about $2.5 million remaining in the bank.
Opponents of privatization, led by beer distributors, applauded the move.
"We are pleased the national grocers have decided to withdraw their unpopular ballot initiative to take over Oregon's thriving liquor marketplace," said Ryan Frank, spokesman for Oregonians Against the Takeover. "Keeping liquor local will protect revenues that support critical government services, will ensure consumers are not subjected to unreasonable price increases and will allow Oregon beer, wine and spirits businesses to continue to succeed and grow."