Governor's budget proposal could expand wine sales

A chardonnay with that oven stuffer roaster? A pinot noir with that fill-up?

Nearly 20,000 stores statewide that sell beer would have the option to sell wine under a proposal in Gov. David A. Paterson's 2009-10 budget.

Paterson will offer an amendment to state law that would allow beer-licensed grocery stores, warehouse clubs, drug and convenience stores, including those at gas stations, to sell wine with a State Liquor Authority license. The bill would exclude beer distributors and similar beer-only outlets.

All but 10 states offer varying levels of wine sales at non-liquor stores, from grocery chains to gas stations. New York liquor stores have long fought such a proposal, and some big Long Island wine makers worry wider availability of popular out-of-state wines will squeeze out local ones.

But liquor authority officials said the move would generate more than $150 million in revenue for the state in licensing and franchise fees over three years, while boosting the state's wine makers and customer convenience. The proposal requires lawmakers' approval and would take effect six months after passage.

State Agriculture Commissioner Patrick Hooker yesterday said New York has slipped in per capita adult consumption and sales of wine to Washington state, which now ranks second to California. He blamed the liquor-store only sales here.

Excluding restaurants and wineries, about 2,400 liquor stores throughout the state offer wine at retail. The number would jump to 19,000 with the law change, said Noreen Healey, a commissioner of the New York State Liquor Authority.

The proposal has been around for decades, but liquor stores have opposed it, saying lost sales will lead to lost jobs or worse. "It would fold this place up like a tent," said Henry Levitan, owner of Mart Liquors in Plainview. A liquor-store study commissioned five years ago said it would lead to 4,000 lost jobs at wine and liquor retailers. But Healey said because liquor stores focus their sales on spirits and handcrafted "boutique wines," they should not be affected.

All hourly restrictions on the sale of wine in liquor stores would apply to the newly licensed outlets.

Tom Cullen, vice president of the King Kullen grocery chain, said the move would propel wine sales and benefit customers by allowing them to more easily coordinate meals with wine. He said his stores would feature Long Island wines, as they do local produce.

Despite the state's assurances, not all local wineries like the idea. "All it does is stretch out the current base of drinkers," said Steve Ciuffo, general sales manager at Pindar Vineyards, Long Island's largest. He's worried that grocery chains will favor big national brands, primarily from California, over local ones, while squeezing local liquor stores that specialize in local wines. "If anything, it'll hurt us," he said.

But Long Island Farm Bureau executive Joe Gergela said he doesn't expect that to happen. "We've been lobbying for this for 20 years," he said. "To be successful they [local wine makers] have to increase market share."

WINE TIMES

Although a new proposal would allow wine to be sold at grocery stores and other outlets, the existing hourly restrictions would continue to apply.

NASSAU (liquor stores)

Mon-Wed 9 a.m.-8 p.m.

Thur-Sat. 9 a.m.-10 p.m.

Sun. noon-8 p.m.

SUFFOLK (liquor stores)

Mon-Thurs. 9 a.m.-8 p.m.

Fri-Sat. 9 a.m.-10 p.m.

Sun. noon-9 p.m.

AT WINERIES

Mon-Sat. 8 a.m.-midnight

Sun. 10 a.m.-midnight