Liquor stores fight wider wine sales
Jobs at stake, North Country retailers argue
PLATTSBURGH -- A new coalition has been formed in opposition to a proposal to allow wine sales in stores where beer is currently sold.
The Last Store on Main Street, a group of thousands of small-business owners from throughout the state, was formally announced recently. Reasons for its opposition include potential job losses and increased access to alcohol for minors.
Matt Nephew of Nephew's Liquor and Wine is a member of the coalition. He is a third-generation liquor-store owner, with a store located two doors away from Price Chopper in Champlain.
"In my store, 75 percent of my sales are wine sales," Nephew said. "You try living off 25 percent of your income. It's a fight for our livelihood."
A study by Global Insight completed 5 years ago, the last time such a measure was proposed, stated 1,000 of the 2,700 liquor stores in the state would close, with a loss of about 4,700 jobs.
With the present economic situation, "you have to think those numbers will be higher now," Nephew said.
UNDERAGE SALES
The opportunity for minors to buy wine at grocery or convenience stores has increased, Nephew said. Some stores even have self-serve checkouts, where one clerk is responsible for multiple checkout lanes.
He said state law allows owners to have only one store and sell only liquor and wine. Grocers are allowed multiple stores and can sell thousands of products.
A coalition news release states no state has passed such a measure in 23 years. In Florida, California and Texas, three states with similar wine sales provisions, the rate of alcohol-related fatalities is double that of New York, and three times higher for those under 21.
The proposal in Gov. David Paterson's 2009-10 executive budget is projected to raise an estimated $105 million next year through franchise and licensing fees, as well as excise and sales taxes. That revenue is estimated at $54 million in 2010-11 and $3 million for the next two years.
JOB LOSS
Coalition members dispute those figures. They also contend the measure could lead to significantly larger job-loss figures, with few, if any, jobs created.
Liquor and Wine Warehouse owner Steve Carpenter attended a meeting of coalition members late last week. He said it is working to schedule a lobbying day in Albany and to testify before the New York Senate.
Local liquor retailers are an asset to their community, Carpenter said, not a liability. They create jobs, pay taxes and advertise locally.
He said the move is likely to reduce revenue from sales because larger chains will sell wine at a reduced cost.
Children are likely to become exposed to wine at a young age as they accompany parents shopping. Carpenter said he seldom sees children brought into his liquor store by a parent.
He questions why the state wants to increase the availability of alcohol so drastically when it has spent so much money on alcohol-abuse prevention issues.
TOUGH ECONOMY
Liquor and Wine Warehouse has 17 employees, who are all worried about their jobs if the proposal is included in the budget. In a similar situation is Greg Duval, who has a second job as a part-time employee at L&M Discount Liquor and Wine.
"In this economy, there are a lot of people who need to work two jobs," he said.
If Duval loses the job, he doesn't qualify for unemployment. In the current economy, finding a job is tough, and made tougher still when it has to fit in with the work schedule at his other job.
He believes the proposal will hurt small wineries in the state, as supermarkets and convenience stores are not likely to carry those brands. The smaller wineries don't produce enough product to supply larger chains such as Wal-Mart or Costco.
NEW REVENUE
The New York Farm Bureau and The Business Council of New York State are among those in support of the proposal.
In a news release, Business Council President and CEO Kenneth Adams said the measure is good for the economy and for consumers.
"Allowing supermarkets and grocery stores to sell wine will allow new markets for upstate and Long Island wineries and convenience for consumers," he said. "In addition, the proposal will generate new revenue for the cash-strapped state."
He said 35 states allow such sales, which leaves New York out of the mainstream. The proposal would allow wine to be sold in about 19,000 grocery and convenience stores.
A BOLD MOVE
New York Farm Bureau President Dean Norton issued a news release when the budget first came out.
"The governor's proposal is a bold move that brings New York in line with other states and provides our wineries and grape growers with the ability to increase their market share," he said.
The Farm Bureau also supports allowing liquor stores to expand their product lines as a way to help them stay in business.
Carpenter said proposals such as allowing beer and cigarette sales in liquor stores is something the industry isn't seeking.
State Sen. Betty Little has sent a letter to Paterson that requests the proposal be withdrawn from his budget.
"Representing more than 70 liquor stores in the 45th Senate District, my concern is for their sustainability. Permitting the sale of wine in grocery, convenience and drug stores will draw consumers away from these smaller businesses," she wrote.
She said the large grocery chains have a tremendous advantage in buying power.
"Selling wine at a lower price will no doubt attract consumers to these large retailers and away from the smaller Âmom and pop' liquor stores," she wrote.