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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The following is part of an editorial from the Rochester Democrat and Chronicle in support of the sale of wine in grocery stores.

“Almost a year ago this page called for liquor store owners and distributors to try to work out their differences with proponents of wine sales in supermarkets after a proposal for such a change died in the state Legislature.

The talks never materialized. And again, the proposal, which has strong public support, is back before lawmakers. This time the Legislature should push forward.

The 2010 legislation contains reasonable concessions to the liquor industry and at the same time benefits New York taxpayers and consumers.

Perhaps foremost at a time when the state is facing a $9 billion budget deficit, the proposal would provide an additional $300 million in state revenue.

Without raising taxes on consumers, the desperately needed additional revenue would be derived from franchising and license fees.

New York consumers would join those in 35 other states who currently have the convenience of purchasing wine in grocery and food stores. Polls show nearly 70 percent of New Yorkers want this convenience.

As for liquor stores, which have long complained that allowing supermarkets such as Wegmans to sell wine will force many of them out of business, the bill doesn’t ignore that concern. It allows them to sell additional products. Permitting cheese sales in liquor stores for the first time also will help New York’s dairy famers.”

To read the rest of the editorial click here.

The state is considering allowing grocery stores to sell wine - the money from new liquor licenses would help ease a budget crunch. But the powerful liquor store lobby has other ideas.

Tina Susman of the Los Angeles Times writes - “Reporting from New York - Quick, which of the following is not allowed in New York: riding the subway without pants, performing a play in public while naked, or buying wine at the grocery store?

If you chose the last option, perhaps you’ve been following one of the liveliest debates to emerge from otherwise dry budget talks in the state capital, Albany, where politicians struggling with a dire fiscal crisis see wine as an antidote.

New York remains one of 15 states that limit wine sales to liquor stores. But the proposed 2010-11 budget would open sales to grocery stores to generate an estimated $250 million in revenue from new liquor licenses.

In this bastion of liberalism — home to the city that never sleeps, a burgeoning local wine industry, and a mainly urban populace that prides itself on sophistication — it might seem like broadening wine sales would be as welcome as a full-bodied red on a cold winter’s night.

But the state’s powerful liquor store lobby has successfully fended off similar attempts in the past — most recently during last year’s budget debate — arguing that the change would drive small liquor stores out of business by making it convenient for shoppers to buy wine at grocery stores…

Those who support grocery store wine sales point out that not everyone in the state lives in New York City, where it’s common to be just a few minutes’ walk from a liquor store. In fact, 570 towns, with names like Swan Lake and Owls Head, speaking for their rural characters, have no liquor stores, according to the Department of Agriculture and Markets.

“Nobody realizes that there is more to the state of New York than the five boroughs,” said an exasperated Kim Pavnick, the owner of Grandpa’s Grocery in the snowbound hamlet of Bliss, more than 300 miles northwest of New York City. “We’re in the boonies here. If more than three cars a day pass my house, it’s because someone is having a bake sale.”

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The same Siena poll released this morning also shows - “By a 58-39 percent majority, voters support allowing New York grocery stores to sell wine. It is supported by Democrats, Republicans and independents, liberals, conservatives and moderates, and by voters upstate and downstate. Selling wine in grocery stores is supported by virtually every demographic group, with the exception of African Americans, Latinos and older voters, who are all evenly divided,” Greenberg said.

“Voters are opposed to the Governor’s proposed tax on soda and other sugared beverages by a margin of 59 percent to 38 percent,” Greenberg said. “While Democrats and New York City voters are closely divided on this issue, it is overwhelmingly opposed by Republican, independents, downstate suburbanites and upstaters.”

Voter Priorities: Reducing State Spending; Lowering State Taxes; Increasing Funding for Schools

“When asked to choose the top two priorities – from a list of six – they want to see state government focus on for the rest of this year, voters ranked reducing state spending, lowering state taxes and increasing funding for schools as the top three, outpacing reforming state government ethics, fixing roads and bridges, and passing same sex marriage legislation,” Greenberg said. “Democrats put education on the top of their agenda, followed by spending. Republicans have a tie for the top spot between taxes and spending, and independents put spending on top, followed closely by taxes.”

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Ruben Rodriguez writes an op-ed on LoHud.com how the proposed changes to the liquor-law will improve his business. - “As the owner of a liquor-store here in New Rochelle, I’m proud to be a part of our community. Unfortunately, keeping business up during this recession hasn’t been easy and New York’s outdated, Prohibition-era liquor laws aren’t helping.

The new proposed changes to liquor laws that will open up business opportunities to liquor stores like mine and other small businesses will help keep my doors open for many years to come, helping my business, giving consumers more choice and
helping our state’s economy.”

To read more click here.

Brian Meyer of the Buffalo News writes - “The pros and cons of a new state proposal that would allow supermarkets to sell wine were aired during a lively hearing Tuesday in downtown Buffalo.

Speakers gave clashing viewpoints about what effects Gov. David A. Paterson’s plan would have on the liquor store industry, wineries and the economy in general…

David Mansfield owns 3 Brothers Winery in the Finger Lakes region and is a member of the New York Wine Industry Association. He said Paterson’s bill would dramatically expand retail opportunities in an industry that is currently plagued by limited distribution channels. The new law would help businesses expand and create jobs, he said.

Paul Speranza, vice president and general counsel of Wegmans, spoke on behalf of a statewide coalition that is stumping for the law. He said surveys indicate 70 percent of New Yorkers want to see wine sold in supermarkets and grocery stores. Consumers recognize that the law would make it more convenient and more economical to buy wine, he said. “Today is a local test of democracy, free enterprise and transparency of open government,” he said.”

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Brian Meyer of the Buffalo News writes - “Leaders of a group that represents hundreds of liquor stores will meet Tuesday with Buffalo lawmakers as part of a campaign to block a state plan that would allow supermarkets and grocery stores to sell wine…

Supporters argued that the bill contains incentives for liquor stores that were not included in a plan that was killed last year. Under the new law, liquor stores could begin selling gourmet foods, snacks, gift baskets, cigars and other products. The measure also would allow liquor stores to install automatic teller machines, sell directly to restaurants and other retailers and band together to buy products in volumes. Store owners also would be allowed to operate more than one outlet.

“The new bill is dramatically better than the old one,” said Paul Speranza, vice president and general counsel of Wegmans.”

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Chris Churchill of the Times Union writes - “Gov. David Paterson’s renewed push to allow wine sales in grocery and convenience stores is again pitting supermarkets against many liquor stores — and keeping lobbyists on both sides of the debate happily employed.
This proposal from Paterson, unveiled last month, contains perks for liquor stores that were absent from his last push, which died last spring during budget negotiations. Most notably, it would allow the stores to sell some food items and open multiple locations.”

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“Gov. David Paterson’s Executive Budget takes an important step in the right direction for New York by showing restraint in new spending and restraint in new taxes. While not perfect, it is being positively received by many major private sector employers within our membership,” said Kenneth Adams, president and CEO of The Business Council of New York State, Inc. in budget testimony to the state legislature’s fiscal committees.

“Our basic message today is to urge the Senate and Assembly to follow the Governor’s lead and adopt a no-growth budget, and avoid adding spending and taxes that are simply unaffordable to our moribund economy, to our businesses and to New York State residents,” added Adams. “This restraint is essential not only to bring the state’s fiscal house into order, but to improve New York’s economic climate and promote private sector investment and job growth.”

To read more on the Business Council’s testimony click here.

The Utica Daily News reports - “New Yorkers for Growth and Open Markets, a statewide coalition of advocates seeking changes to New York’s liquor laws, today praised Governor Paterson’s proposed FY2011 Executive Budget for including a new, comprehensive proposal to allow the sale of wine in grocery stores – the “Wine Industry and Liquor Store Revitalization Act” – that now also features significant benefits and changes for the state’s liquor stores.

This updated, inclusive approach to the issue of wine in grocery stores will directly assist both New York’s wine industry and its liquor stores, while at the same time generating $147 million in desperately needed new state revenue with no new taxes (in addition to estimates from economists that it will net at least another $22 million in annual state revenue on an ongoing basis). New Yorkers for Growth and Open Markets is comprised of New York State wineries, grape growers, liquor stores, business organizations, groc! ers and farmers advocating for smart, comprehensive changes to the state’s antiquated liquor laws that will result in increased consumer choice and opportunities for economic growth.”

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