Dec 16, 2008 7:10 pm US/Eastern
Wine On Sale At Gas Stations? You Betcha
Under Gov. Paterson's New Plans To Raise Money For N.Y., Wine May Soon Be Sold In Grocery Stores, Delis, Too
NEW ROCHELLE (CBS) ―
Governor David Paterson's new tax plan could bring wine to a grocery store near you, generating millions of dollars.
The governor's proposed budget will raise taxes on wine and beer and also dramatically expand "where" New Yorkers can buy wine.
Consumers might want to lift a glass, but wine sellers are ready to drown their sorrows.
When Michael Grossberg looked for a spot to open his wine shop he wanted to be near a grocery store.
"Traffic is the most important thing. You want optimal exposure, to be near where people are going to go daily," said Grossberg, owner of The Grape Exchange.
But now Grossberg worries the Food Emporium that drives traffic to his wine shop will become his biggest competitor.
Thanks to Gov. Paterson's proposal to dramatically expand where wine can be sold.
Like a fine Bordeaux that's been aging in the cellar, this proposal is nothing new. New York State has been looking at expanded wine sales as a source of revenue for decades.
Now the budget crisis may make it easier to swallow. Currently, New York has just 2,400 stores licensed to sell wine. Paterson wants to offer wine licenses to outlets that already sell beer. That's 17,000 grocery stores, gas stations and delis.
He estimates it'll raise $150 million in new license fees.
Many consumers CBS 2 HD spoke to like the idea.
"I think it makes sense. Anything to increase revenue makes sense," said Elliot Resnick of New Rochelle.
"It'll be good for the customers, not so good for the wine-sellers though," added Henry Yurek.
Indeed, most wine retailers hate the proposal.
"Absolutely, marginally-profitable stores will be put out of business," Grossberg said.
Grossberg said little guys won't be able to compete if big grocery chains are allowed to sell wine.
"When I have a 900-square foot store next to a 20,000-square foot supermarket, 99-percent of the time, who's gonna win?" he said.
Grossberg's industry plans to lobby hard to put a cork in the governor's proposal.
The General Assembly will take up the proposal early next year. Currently, New York is one of only 16 states that don't allow grocery stores to sell wine.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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