For the past two years, grocery store owners have been pushing for the sale of wine in their New York stores, an action violently opposed by liquor storeowners. The idea, started by former Governor David Paterson, floated in the past few years but took a backseat after liquor storeowners gathered to oppose it.
A study was released by New Yorkers for Economic Growth and Open Markets on the effects of selling wine in grocery stores, stating it would raise millions of dollars through franchise fees, create thousands of jobs in wineries, as well as related industries and create around $71.1 million every year through sales tax. For these reasons, the association pushes for state legislators to permit grocery stores to sell wine and at the same time lower restrictions on what liquor stores can sell.
Some legislators are considering this idea, as it would help raise profits but maintain taxes. Legislators say that any proposal that could provide long-term growth to the local economy should be considered.
Liquor storeowners, however, do not buy this idea. They have stated that liquor stores are better trained to monitor wine sales and that they have been doing it very well. Liquor storeowners have expressed that allowing grocery stores to sell wine could be potentially damaging to small liquor stores or small businesses, as a majority of their sales come from selling wine. Although selling wines in grocery stores can lead to an improvement in revenue for grocery stores such as Wal-Mart, it could lead to liquor stores and small businesses being out of business. It could also lead to a loss of jobs for people working in these small businesses.
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