News

N.Y. Gov. Proposes Wine Sales at Grocery Stores

March 11, 2009 - 11:00pm
By Elisabeth Rosen

Students looking to savor a glass of local vino may not have to travel any farther than Wegmans if the State Legislature approves Governor Paterson’s recent proposal, which allows grocery stores to sell wine for the first time in New York State history. But the liquor store owners affected by the proposal claim that the governor based his decision on drunken logic.

The proposal came about as a means of decreasing the state’s multi-billion dollar budget gap. Supermarkets selling the wine would be required to pay a franchise fee to the state, which Paterson hopes would raise over $100 million.

“There would be a good chance that we would close,” said Rob Hayes, manager of Judd Falls Wines & Spirits. He pointed out that a liquor store owner can only run one store, while a supermarket owner can own several. This discrepancy would make it harder for small liquor stores to compete with large supermarkets.

Liquor store owners also claim that the proposal would make it easier for minors to buy wine, despite the fact that there is no current data supporting such a contention.

“A grocery store is a very big place,” Hayes said. He questioned whether grocery store clerks could monitor the legality of alcoholic beverage sales to the extent that a liquor store salesperson could since grocery stores have such a wide array of products.

In response to these claims, Gary Woloszyn, Wegmans store manager, argues that grocery stores can actually monitor transactions of alcohol better than liquor stores.

“Our systems for ID checking are more complex than in liquor stores right now,” Woloszyn said.

Opinions on both sides of the issue seem to be determined by business interests. Supermarkets focus on the opportunity the proposal would give them to branch out into a new area, while liquor stores want to protect against competition.

Caught in the middle are local wineries, which produce many of the wines that would appear on Wegmans shelves. Dave Peterson, who is the general manager of Swedish Hill Winery, which his family owns, hesitated between expressing solidarity with the winery’s current business partners and admitting that the proposal offers an opportunity for market expansion.

“We’re on the side of the stores that have supported us,” he said. “The livelihood of existing liquor stores is at stake.” However, he also admitted that since, “some stores haven’t supported local wineries … it is tempting to have more sources sell our wine.”

Peterson also refuted the liquor stores’ claim that the proposal would enable teenagers to buy wine.

“There is no data to support that,” he said.

This legislation could potentially benefit the New York wine industry as much as it could harm liquor stores. Both Peterson and Woloszyn alluded to the potential to expand New York State wines into new outlets, particularly focusing on local products.

As this recent proposal is yet to be made into law, many local stores have yet to decide their definite business strategy when it comes to selling wine. Jason Burnham, owner of Jason’s, a local grocery store in Collegetown, projected that he would probably invest in wine but only in a limited quantity.

“We’re a very small store so I think we would sell a little bit [of wine],” Burnham said. “We would probably take one row of beer out and replace it with wine.”

Paterson’s proposal could also benefit students by making it more convenient to buy wine, rather than less healthful alcoholic beverages like beer. According to Nutrition Journal, wine contains a natural source of antioxidants, which helps prevent the physical effects of aging.

“If I could pick up a case of wine at Wegmans instead of a 6-pack, I would,” said Luke Chan ’12. Chan, who is currently 18, can not do either. He eagerly anticipates the day when he will be able to legally obtain such beverages.


Related Topics: Paterson, Wegmans, wine

In this economic climate,

In this economic climate, I'd feel bad about driving anyone out of business, all reasons considered. But it's time to end this charade of liquor store owners, desperate to protect their business, predicting societal meltdown if wine is sold in grocery stores.

Many states, including my home state, already have wine available for sale in grocery stores. But what will separate the wheat from the chaffe is quality. My father and all his wine drinking buddies frequent local liquor stores and Argentinian markets even having wine readily available as they buy there toilet paper and milk.

I hate protectionism in all its manifestations. I'm no hard right-winger, but in my view, nobody has the "right" to stay in business. If Wegman's sells wine, you'll just have to identify your base-who are your customers and how can you sell what better than Wegman's. If Wegman's outsells you? Oh well, that's the free market. You might lose college students looking for Franzia and cheap crappy wine, but identify your market.

And as a side note, this comment does not make one iota of sense, "“A grocery store is a very big place,” Hayes said. He questioned whether grocery store clerks could monitor the legality of alcoholic beverage sales to the extent that a liquor store salesperson could since grocery stores have such a wide array of products." Of course I'm using purely anecdotal evidence, but getting alcohol from liquor stores is 9 times out of ten 1000 times harder in a grocery store. There is no data that this would happen, plus, grocery stores already sell beer-why hasn't this pronounced effect occurred with that.

end rant

wine in grocery stores

Most folks writing these kinds of articles seem not to have done their homework. There ARE statistics to show that small businesses would close. There IS evidence to show underage drinking can be linked to places that now sell beer and wine coolers (aka grocery stores etc.). Why does the Governor support closing small liquor stores which would cause more job losses and closed stores that indeed now DO pay taxes and monitor ID's properly? This budget fix was surely not well thought out. It is serving to divide wineries from liquor stores, the public from the business owners, and allowing big box stores to eat up the few "mom and pop" stores left standing in New York State. No wonder people leave New York! go here to get some updates: www.lastmainstreetstore.com