Don Cazentre of the Syracuse Post-Standard writes - “Selling wine in New York’s grocery stores is expected to increase consumer demand, benefit the state’s wine industry and boost the state’s revenues in a time of financial crisis.
It’s also likely to cut wine sales at the state’s liquor stores, most of them small and family-owned, possibly enough to knock many out of business. So says a report written last year by a Cornell University economics professor.

In the often-passionate debate that has accompanied the wine-in-grocery-stores proposal, both sides have cited economist Brad Rickard’s research as evidence that their position is right. The debate is heating up this month, as the idea is a key piece of Gov. David Paterson’s proposed 2010-2011 budget; the new budget year begins April 1…

Advocates for the latest version of the wine-in-grocery proposal say the new provisions are enough to compensate the liquor stores. “The liquor store industry is declining as it stands now,” said Heather Briccetti, vice president for government relations for The Business Council of New York State, one of the members of the coalition supporting the change. “We have fewer than 3,000 (liquor) outlets in the state, one of the lowest totals in the country.”

Moreover, she said, the benefits to other business in the state are overwhelming. “It promotes consumer choice,” she said. “It increases wine sales, so it’s good for the wine industry, the grape growers and related industries.”

She said the liquor stores will benefit from several provisions in the bill, such as one that allows them to cooperate in purchasing, to reduce costs. Another provision limits the number of licensed liquor stores, thereby increasing their value, and allowing licensees to sell them without relicensing requirements.”

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