Getting drunk on wine sales
Gov. David Paterson has proposed letting stores that sell beer stock wine too — as do 35 other states — as one of many proposals to close the state’s $15 billion budget gap.
But the suggestion has pitted New York’s grape growers and supermarkets against liquor and wine stores in a dispute that has been aging like a fine cabernet. Proposals for selling wine in groceries have nosed around Albany for more than 30 years.
The liquor lobby has always argued it would kill mom-and-pop stores and open the door to teen tippling.
“Liquor stores are the last small businesses,” said Michael Correra, of the Metropolitan Package Store Association.
More than one-third of the state’s 2,742 wine sellers and liquor stores would close if the proposal bears fruit, he claimed.
“Their argument doesn’t hold water,” said Jim Rogers, of the Food Industry Alliance of New York State.
Rogers believes the wine proposal is finally ready to uncork because the state desperately needs money.
The state estimates expanded wine sales would bring in $150 million over two years from licensing fees and tax revenues. Paterson has suggested a tax increase on wine to 51 cents a gallon from 18.9 cents.