The Benefits of Selling Wine in New York State Grocery Stores. Get the Facts. Get the Truth.

Don't let the liquor lobby's misinformation campaign fool you

March 2009 - New York State's big liquor distributors and liquor lobby continue to rely on numerous myths and assertions with no basis in objective fact as part of their campaign against the proposal to allow the sale of wine in grocery stores. It's time to "set the record straight".

New Yorkers in all walks of life support selling wine in grocery stores because it would bring so many benefits to our state. Here are some benefits worth mentioning:

Consumer support: New York's consumers support the idea by a two to one margin. They cited improvements in consumer choice, convenience, and cost. They also praised the likelihood of more jobs in wine-related industries and more growth opportunities for New York's wineries.

Consumer benefits: New York has only about 2,500 wine-selling outlets - so few that it ranks 46th among all states in number of outlets per capita for the purchase of wine. That both inconveniences consumers and hurts New York's wine industry. Increasing the number of outlets to some 18,000 would foster increased competition and save New York's consumers some $80 million as a result.

Tax revenue benefits: New York's taxpayers would also welcome the new policy - because it would generate an estimated $159 million in new revenues in the first two years. In a state that's reeling from a fiscal crisis, that's help that our schools, hospitals, and essential government services need.

Employment benefits: A study by the American Economics Group concluded that wine sales in grocery stores might trim the liquor stores' "monopoly profits," but the bottom line would be a net increase in employment - estimated at some 2,000 net new jobs.

Benefits to New York's wineries: New York is the only major wine producing state that does not allow for the sale of wine in grocery stores. That helps explain New York's diminished leadership in the wine industry in recent years. California and Washington, the number one and two respective wine producing states, have six times as many retail outlets per person than New York.

Business support: Broad statewide business groups favor the proposal. So do regional chambers of commerce, grocers, convenience stores, bodegas, farmers, wineries, and agribusinesses. Environmental groups, labor unions and some community coalitions have also supported wine sales in grocery stores.

Wine in grocery stores has benefited 35 other states: Thirty-five other states have allowed wine sales in grocery stores - with no signs that liquor stores have been eradicated as a result. In fact, there is evidence that wine sales in grocery stores would even benefit liquor stores. One study showed that states that now permit wine sales in food stores also support a greater number of liquor stores per capita than states that limit wine sales to package stores.

Benefits of extending New York grocers' tradition of supporting local suppliers: Wegmans, Whole Foods, Price Chopper and many other New York grocers have strong traditions of supporting their local framers and other suppliers. Many of these grocers have pledged to expand that tradition by supporting New York's wineries. They have bought locally when they can, and this tradition would likely continue in new relationships with New York's wineries. This is both good corporate citizenship and good business.

Supporters of this proposal include the New York State Farm Bureau, the Food Industry Alliance of New York State, the Business Council of New York State and the New York State Association of Convenience Stores. Additionally, large and small retailers support this proposal across the state, including the National Supermarket Association, which represents small minority-owned retailers and bodegas, as well as virtually all New Yorkers.

We need your help to get the message out to New York lawmakers and legislative leaders. Ask them to support the proposal that will allow the sale of wine in New York food stores.