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Supermarket wine sales spark City Hall debate

Published:February 10, 2010, 6:53 AM

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Updated: August 21, 2010, 4:35 AM

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.

The City Hall hearing, sponsored by the Common Council’s Legislation Committee, began with presentations by three supporters of the plan.

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.

But a Town of Tonawanda liquor store owner who is vice president of the New York State Liquor Association painted a different picture. Marc Ressler, who owns Midnight Liquors, warned that if state lawmakers pass the proposal, it will doom 1,000 liquor stores and cost thousands of jobs at a time when New York is confronting the worst economy in generations.

“This is the equivalent of a giant corporate money grab,” Ressler told Buffalo lawmakers. “It’s really disgusting.”

Ressler disputed claims that the law would be a boon for state wineries, predicting that many supermarkets would stock “cheap foreign-produced” wine and end up creating even more competition for New York businesses.

Supporters noted that 35 states currently allow wine sales in supermarkets. They said the new plan would generate hundreds of millions of dollars in state revenues over a few years that would help the state fund health and education programs.

Proponents insist the proposal contains incentives for liquor stores that were not included in a plan that was killed last year. The latest plan would allow liquor stores to sell gourmet foods, snacks, gift baskets, cigars and other products.

Shannon Carscallen, of Gates Circle Liquors on Delaware Avenue, said her family-owned store doesn’t have enough room to expand its product line to other items. Wine accounts for about 70 percent of the store’s sales, she said.

The bill also would allow liquor stores to install automated teller machines, sell directly to restaurants and other retailers, and band together to buy products in volume. Store owners also would be allowed to operate more than one outlet.

The Council is expected to consider a resolution Tuesday to put the city in opposition to the plan. Last week, the Erie County Legislature unanimously passed a bill against supermarket wine sales.

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