Gov. David A. Paterson's proposal to allow wine sales in grocery stores will be good for consumers and wineries while providing badly needed revenue to the state.
Enacting his proposal will open up 16,000 new outlets for wine sales in delis, bodegas, mom-and-pop stores and gas stations licensed to sell beer. Consumers can expect lower prices from the competition. The governor's proposal would lift Prohibition-era regulations restricting wine sales to liquor stores. Vintners will have the incentive to invest in expanded operations and employment opportunities to meet demand for their locally produced wines.
According to wine industry and Farm Bureau data, New York is number three in the nation in grape production but ranks 46th in wine outlets. While the number of wineries has grown, the number of liquor stores has declined, limiting consumer access, competition that can reduce prices and market availability to vintners.
New outlets would also make New York wines available in villages where there are no liquor stores.
As a concession to liquor store owners who have opposed the plan, liquor stores would be allowed to sell some food, cigars, lighters and other merchandise, but not cigarettes or beer. The would also be able to operate multiple locations.
Grocery store wine sales could create up to 2,000 jobs. The state would receive $300 million in new revenue through franchise and license fees over the next two years.
Liquor store owners make the ludicrous claim that selling wine in grocery stores will lead to more underage drinking. In fact, grocery stores have instituted strict measures that require proof from consumers of all ages before permitting sales of alcoholic beverages.
It's time to remove the restrictions and let New York state join 35 others that allow wine sales in grocery stores.