Joseph Spector reports on pressconnects.com - “Gov. David Paterson hasn’t put the cork in his proposal to allow groceries to sell wine and is instead offering a new medallion system to lure support from liquor stores.

But a leading group representing liquor-store owners quickly put the idea on ice Tuesday, saying allowing big groceries to sell wine would put them out of business.

Paterson made the pitch in a letter to liquor stores last weekend, offering to allow them two medallions per store that they could sell to groceries. Supermarkets would need to purchase the medallions from the liquor stores to sell wine for the next three years. The sale price would be negotiated.

“I have listened to your concerns and carefully considered your ideas,” Paterson wrote. “The medallion concept is an innovative addition that will provide you with a real economic benefit.”

For the past two years Paterson has sought a law to allow groceries to sell wine, both as a way to raise state revenue and, he argues, to help New York wineries sell their products in more places. Thirty-five states allow supermarkets to sell wine.

This year, Paterson has included a one-time franchise fee that groceries would have to pay to get a license to sell wine. The franchise fee would bring in about $300 million to the state over two years, state officials estimate.

Liquor stores would be allowed to sell other products to help their businesses.”

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