Small shops say supermarket wine sales will sink them

Not long after ratification of the 21st amendment in 1933 allowing the sale of alcoholic beverages, Young’s liquor store opened in Manhasset. It’s been in business ever since.

But now owner Edward Wassmer is worried his shop will be threatened not by restricting sales but by a proposed law expanding places Long Islander’s can purchase wine.

“I’ve heard that if this bill passes a thousand licensed liquor stores will go under,” said Wassmer, adding that wine makes up 75 percent of his sales.

The bill is included in Gov. David Paterson’s December budget proposal allowing grocery stores, supermarkets and convenience stores to sell wine. Under current law these retailers can only sell beer and the only place to buy wine is at stores authorized by the State Liquor Authority.

The governor predicts if the bill passes the Legislature, New York would take in $105 million in 2009-2010 through new licensing fees. In 2010-2011 the new law would provide the state $54 million in revenue and $3 million a year afterwards.

There are about 2,400 liquor stores state-wide. But if the new bill passes, wine will be available in over 19,000 places. Currently 35 states allow wine sales in food retailers. But no state has voted to allow the sales in 23 years, and two years ago Massachusetts voters handily defeated a similar proposal.

A new coalition of liquor store owners are determined to kill the proposal, citing not only self-interest but public health and safety issues if underage drinkers have easier access to wine.

On the business side, Wamser said it would become nearly impossible to compete. “The larger wineries will cut huge deals with supermarkets and big-box stores which independent retailers couldn’t go near,” he said.

As for the safety issue, the new coalition, called “The Last Store on Main Street,” cites statistics from a 2002 National Highway Traffic and Safety Administration report that in Florida, Texas and California, states where wine is sold in grocery stores, alcohol related fatalities are double that of New York state. The report also noted that fatalities in these states due to underage drinking are three times higher than New York.

Wassmer said there are more controls at the point of purchase at liquor stores to keep wine and other alcoholic beverages out of the hands of teenagers.

Nearly every law enforcement organization in the state, including the Nassau and Suffolk County Police Patrolman’s Benevolent Associations have come out against the proposal saying it will give underage drinkers greater access to alcohol.

Tom Cullen, vice president of King Kullen, isn’t buying it. It’s unfair for liquor stores to retain a special status that other retailers are shut out of, he said.

“This whole thing is about protectionism,” Cullen added. “I understand why these people are concerned but how does King Kullen deal with major competition coming into our market selling food like Costco, BJ’s or local gas stations selling all sorts of food?”

Cullen rejects the public safety issue, pointing out that every item sold in his 47 Long Island supermarkets is scanned and any beer or tobacco item recorded stops the transaction. The checkers are trained then to card anyone they think looks 30 or under.

“We also have outside security people coming in who we pay to check out cashiers,” he said.

Besides, Cullen said teenagers weren’t all that interested in wine.

“The wine buyer is a more sophisticated customer,” he said. “People buy wine to go with dining.”

Liquor store owners are sounding false alarms, said Jim Calvin, president of the New York Association of Convenience Stores representing about 350 Long Island stores. Most Island convenience stores are in gas stations.

“We understand the concerns about new competition in the market for wine but I’m not sure the argument that stores like ours will be recklessly selling alcohol to minors is valid,” Calvin said.

Steven Bate, executive director of the Long Island Wine Council, said his organization had no comment on the proposed legislation.

One vineyard and winery owner was not as reluctant to share an opinion. “I don’t think putting wine in grocery stores will result in more people drinking wine,” said Charles Massoud, owner of Aquebogue’s Paumanok Vineyard. “And it’s socially irresponsible for the government to put people out of business.”

Also, he believes many grocery stores are unaware of Long Island wine and will stock their shelves with known brands at less expensive prices.

“This won’t help the Long Island wine industry one bit,” Massoud said.