Group Continues Push To Allow Wine Sales In New York Supermarkets

A group called “New Yorkers for Economic Growth and Open Markets” released a study last week, conducted by Archstone Consulting, that found allowing wine sales in New York supermarkets would result in annual revenues of $71 million by year five, due to cash generated through licensing fees and existing taxes. Backers of the group include grocers, grape growers, and wineries, among others. They say selling wine in supermarkets would help put a dent in the state’s $10 billion deficit.

According to the study, which was reported on in The Business Review, New York would receive potential revenue of approximately $347 million in the form of franchise fees, and more than 6,000 new jobs would be created in just the first year at wineries and grocery stores. The study’s backers also say that wine sales in general would increase significantly if the number of retail locations where it could be purchased grew.

“We shouldn’t just close the door on a proposal that could raise significant revenue without raising taxes, that could strengthen agriculture and tourism, and that could promise local, longer-term economic growth,” said New York Senator Thomas O’Mara.

Not everyone agrees, however. Many liquor store operators say allowing wine sales in supermarkets would be detrimental to their businesses.

The proposal is not currently in Governor Andrew Cuomo’s budget, but the plan’s supporters are now working to encourage legislators to reverse their decision and enact the plan before April 1 when the state budget is due.

See the full Business Review story here.