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Another Voice / State government

Susan Hayes: Wine in grocery stores will help local economy

Published:December 29, 2010, 12:00 AM

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Updated: December 29, 2010, 9:15 AM

 

You don’t have to be an economist to know that upstate New York’s economy is struggling. All you have to do is walk down our streets, duck into our coffee shops or turn on the local news to know people are hurting. When times are tough, we need to do everything possible to help our small businesses grow and create new well-paying jobs.

One way to help New York’s upstate economy get back on its feet is to get rid of New York’s Prohibition-era laws that prevent consumers from buying wine in grocery stores. Nearly 60 percent of New Yorkers consistently say they want our leaders in Albany to pass this common- sense proposal that would create thousands of jobs for New Yorkers.

If our elected leaders passed this plan, our wineries, grape growers and related industries would quickly benefit greatly from new markets to sell their wonderful products. While New York ranks fourth in wine production, we rank only 11th in wine sales — a disappointingly low ranking for the amount of wine we produce. According to Wine & Vines, a leading trade magazine, the low ranking in wine sales was, “probably because of the state’s unusually restrictive regulations, which prohibit wine sales in supermarkets.”

This unnecessary regulation starves one of New York’s growing and thriving industries, and a major source of small business employment. In tough times, we need less regulation on small businesses like wineries, not more.

When other states have allowed consumers to buy wine in grocery stores, consumers have responded by buying more wine. When Washington State began selling wine in grocery stores, wine sales jumped 53 percent. In 1985, when Iowa began selling wine to consumers in grocery stores, wine sales skyrocketed 80 percent. With the economy sputtering, a boost in sales would make a huge difference for small businesses.

New Yorkers from every region of the state and from all parties understand the benefits of this proposal — that’s why they overwhelmingly want the choice to buy wine in grocery stores. A recent poll by Siena found that nearly 60 percent of New Yorkers support the option to buy wine in grocery stores. Getting nearly 60 percent of New Yorkers— of all political stripes, ages and locations — to agree on anything is close to impossible, but they are united in their desire to lift restrictions on small business and consumers. Simply put, New Yorkers know a good deal when they see one, and selling wine in grocery stores is a good deal.

But like many good ideas, this one has been stalled by special interests in Albany. The big liquor lobby has spent vast sums of money killing this proposal in the halls of the Capitol.

But with a new governor, who has pledged to stand up to the special interests, and a tough economy, this is the year for our elected officials to stand up for our small businesses and consumers and allow New Yorkers to buy wine in grocery stores.

Susan Hayes co-owns Miles Wine Cellars in Himrod.

 

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Comments

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"I agree with Robert H. MacCallum. Anyone who has a basic understanding of business or economics understands that there is a cause and effect to everything. Moving wine into grocery stores might increase overall sales for a ... "
Dear John; good observations, and one which led me to some serious thinking and prompts this comment: As you suggest any gain in jobs in the supermarkets would create loss of jobs in the liquor stores. We must ask ourselves some complex questions concerning what kind of society we want, what kind of life do we prefer? This job shift continues the trend of replacing "small economy" jobs such as liquor store owners, their family members and their employees with corporate type "big economy" jobs such as stockboy or cashier. It replaces some quantity of independence and quality of life with a pyramid design which by nature requires much greater concentration of jobs at the bottom end. What might you want...for yourself...for your children..for our civilization? Oh, and thanks for the opportunity to begin my post like that!

ROBERT H. MACCALLUM, SLOAN, NY on Sun Jan 2, 2011 at 12:16 PM

"I suggested to a state senator that if wines were sold in grocery stores, that to lessen the impact on liquor stores, only NYS wines should be sold. He replied that it would be against an interstate commerce law ... "
I too have been suggesting that NYS wines only should be allowed to be sold in NY groceries. I have sent letters to my legislators and even Patrick Hooker from Ag & Markets. If all wines are allowed to be sloed in grocery stores, very quickly, the out of state & international wines will dominate. By only selling NYS wines, growers will benefit from increased sales which will put more $ in state coffers. A mechanism does exist to certify NY wines called UncorkNY. Additionally, many growers and liquor stores are family businesses and the legislature needs to minimize any impact on these small businesses. As for the prohibition from interstate commerce law, I would really like to read it for myself.

PETER ROBBINS, ARCADE, NY on Wed Dec 29, 2010 at 09:46 PM

I agree with Robert H. MacCallum. Anyone who has a basic understanding of business or economics understands that there is a cause and effect to everything. Moving wine into grocery stores might increase overall sales for a year, but it will do it while destroying the licquer stores. There will be closings.. loss of jobs. and the end result?? We will have all scratched our heads and said.. why did we just decimate an entire business sector for the convenience of buying wine at the local supermarket. Isnt this really what we will achieve? Recent history has already shown us with the free trade agreement that it is a temporary "high" or boost in economy, but when all is done and said.. it all regulates and levels back to the original number. The only thing left is... who is supplying? In this case, its the chineese.. In the case of wine.. it will be the grocery stores. SAD!!

JOHN KENYON, EAST AMHERST, NY on Wed Dec 29, 2010 at 07:00 PM

Facts and figures. Fascinating aren't they? While I have no great objection to selling wine in grocery stores this article would lead one to believe that doing so will increase sales. While it may increase sales of wine that increase would come at the cost of a decrease in other sales. Every disinterrested marketing study done to date to the best of my knowledge comes to the same conclusion. While you can shift sales from one food or beverage to another, overall, you are not going to increase or decrease the amount of food or beverage a person consumes. Kind of commonsensical. Thus, there would be no net gain in beverage sales by allowing wine sales in supermarkets. Any increase in wine sales will have an equal and opposite effect on other beverage sales.

ROBERT H. MACCALLUM, SLOAN, NY on Wed Dec 29, 2010 at 12:14 PM

I suggested to a state senator that if wines were sold in grocery stores, that to lessen the impact on liquor stores, only NYS wines should be sold. He replied that it would be against an interstate commerce law and can't be done.
Sounds like the federal government would be involved, oh well, they mess up everything they touch.

DALE SPENCER, LIVONIA, NY on Wed Dec 29, 2010 at 09:55 AM

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