Wine coming to a supermarket near you?
Land of the Two Buck Chuck.
Updated Tuesday at 2:45
Jess gave us the heads-up this afternoon that David Paterson's proposed budget would also open the way for supermarkets in New York State to sell wine. From a story in the Poughkeepsie Journal:
"We will create a spike in the sale of wine," especially New York wine, Patrick Hooker, the state's agriculture commissioner, said in an interview with Gannett News Service.
Wegmans, a leading upstate supermarket chain, applauded Paterson's plan Monday, saying the law is long overdue.
"We love the idea of supermarkets being allowed to sell wine," said spokeswoman Jeanne Colleluori. "We have supported this idea for decades because we believe it's a great service to the customers."
But liquor stores were quick to criticize the proposal, saying it would lead stores to close and therefore damage the local economy.
And as Jess points out, this could also open the way for more Trader Joe's in New York because the chain does a lot of business selling its discount wines.
But there's a bit of a catch, too: the budget would also more than double the tax on wine.
(details throughout this document)
One more thing: in a little bit of an odd twist, the Paterson admin is sort of now telling people to stop drinking soda and start drinking wine. Sort of.
(Thanks, Jess!)
photo: Flickr user woolennium
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Comments
I hate this idea. I will drink more since it's easier to obtain. My liver really hates this idea.
And who will I ask about wine? Some kid wearing heelys?
... said em on Dec 16, 2008 at 8:15 PM | link
This kind of thinking, opening up wine sales to grocery stores, is short sighted and bogus. The state only gains in the sale of the licenses and that is a one shot deal... mostly.. and finite. The sale of wine is pretty much inelastic. so all that will happen is that the quantity of wine sold will be split up by more stores, hurting the existing stores (mostly mom and pops) and marginally adding a few dollars to the likes of Mr. Golub sales. This idea should be DOA.. it does more harm than good, Mom and Pop do pay state taxes, no doubt Mr. Golub pays no State income taxes.. the net may actually hurt the state coffers
... said hrgreen on Dec 17, 2008 at 2:57 PM | link
Terrible idea. Hannaford, Price Chopper, Stop-n-Shop, etc. all stand to gain. Good-bye family-owned liquor stores (and I agree with em: so long to asking anyone knowledgeable about wine, either).
I can't see how this helps small New York vineyards, either. It's tough enough to get locally grown produce and products in the big supermarkets. Do you really think it's going to be any easier for locally produced wine?
Trader Joe's is already in New York State downstate (there are three in fancy-dancy lower Westchester) -- if adopting this is the price for having them further expand, then that's too steep a price to pay.
... said Beaver on Dec 21, 2008 at 11:50 AM | link
I really hope this doesn't happen. It seems to me that liquor stores in NY are small, privately-owned businesses (Isn't it illegal for chains to open in this state?). I worked at a liquor store and their profit on liquor is piddley. 10%, sometimes less. These stores make their profit on wine, particularly jug wine that tends to make up the volume of their business. States that sell wine in supermarkets in other states have a half-row of 1.5's of Alice White and Yellow Tail. There is a place for these wines, but if the local liquor stores go under, so will the diversity of wine available. I love to be able to go to my local wine store (dp wines in Delaware Plaza I have to shout out) if I am cooking something nice or have a special occasion and get some advice from someone who has tried a lot of wine. Losing these stores would be the price that we would pay for convenience.
It seems to me that people are becoming more and more aware of the value of a local and diversified economy and this would be two steps back.
As far as bending over backwards for Trader Joe's, I don't get it. So they have a bunch of pseudo-gourmet pseudo-natural PROCESSED foods for real cheap. The whole foods there are overpriced and never local. It's a hipper chain than most, but not worth launching an awareness campaign. It's still just a brand. The co-op blows them out of the water, and would stand to lose if TJ entered the market.
... said jibberjabber on Dec 28, 2008 at 12:19 AM | link
One more thing: I think instead liquor stores should be allowed to sell beer.
... said jibberjabber on Dec 28, 2008 at 12:21 AM | link
I think its a great idea to allow grocery stores to sell wine. Wine is sold in grocery stores in many other states; states that also have thriving liquor stores. Don't forget that the liquor stores will continue to have a monopoly on hard liquor sales. I think this is good for New York and even better for New York consumers. Nothing wrong with competition. I will continue to buy the bulk of my wine at Empire Wines, but it will be nice to know that I will be able to pick up a bottle at Price Chopper for a recipe in a pinch. Don't be afraid of change, people; it can be a good thing.
... said karen on Dec 28, 2008 at 3:22 PM | link
It would be interesting to know who posted all of these negative comments; maybe people who own liquor stores and who have been gouging the residends of New York?
... said Skipjack on Dec 30, 2008 at 10:32 AM | link
Actually, @em makes an interesting point... kind of defeats her own argument, though. As far as asking some 16-year-old in heelys about the best wine for your meal, that could be the saving grace of the little liquor stores. Any oenophile will avoid Price Chopper wine like the plague - preferring, perhaps, the experience of going to the liquor store, talking with the employees and choosing a wine based on recommendation. Granted, these people may be the minority, but I believe that there are enough of them to support at least a few small liquor stores in most communities.
And, em, if you drink more wine because it's easier to obtain, well... I have issues with chocolate, and it's everywhere. We all have our crosses to bear.
... said Kate on Dec 30, 2008 at 11:18 AM | link
They manage to do this in other states, so I'm sure NY could figure it out. Also, no one said anything about selling liquor in grocery stores so there's still that entire market to focus on.
... said jess on Dec 30, 2008 at 2:56 PM | link
Kate - Yes, wine lovers will still go to liquors stores - until they go out of business. They are barely making it now. Talk to the owners. And, no I don't own one.
And as far as your chocolate problem - you aren't seriously comparing that to alcoholism and cirrhosis, right? If you know anyone who struggles with alcholism, getting past the beer aisle is tricky enough.
I am just stating a the obvious - make it easer to obtain, and people will drink more.
... said em on Dec 30, 2008 at 7:44 PM | link
@em: It was just a tongue-in-cheek comment; I didn't mean to offend you and if I did, I am truly sorry. I am not minimizing the seriousness of alcohol or other addictions and you have my apologies if it came across that way. Just kidding around (though maybe in bad taste). Have a happy and healthy New Year.
... said Kate on Dec 31, 2008 at 8:54 AM | link
I just returned from a week in California where wine is sold in grocery stores. But there is no shortage of "Mom & Pop" Wine & Liguor stores, in fact they seem to be everywhere. In Point Loma (San Diego) on Rosecrans Street there is a Trader Joe's with an entire aisle of wine, but within a mile there are three W&L Stores.
In several W&L stores I tried asking how they competed with grocery stores and was mostly met with blank stares. Only one owner had a direct explanation, telling me it was his selection.
I did notice that most of the W&L stores sell more than just beverages, they also carry newspapers, snacks and smokes. It was to a local W&L store near our hotel that I went to to get a NY Times. In Ocean Beach (also part of San Diego) Chris' Liquor Store at 2275 Sunset Cliffs Blvd has a full service deli and is known for their excellent sandwiches.
... said pjt on Jan 2, 2009 at 9:05 AM | link
And who will I ask about wine? Some kid wearing heelys?
.. said em on Dec 16, 2008 at 8:15 PM
Actually asking about wine does not make any sense whatsoever.
The taste of wine depends on so many factors such as amount of rainfall and sunlight in current year, even strain of mold which infects grapes and strain of bacteria which participates in fermentation. So year-to-year changes in taste are so drastic that the only solution is to actually taste what you buy. And everyone's taste buds are different too...
We do need more detailed labeling, such as red, white, rose etc, amount of residual sugar and alcohol, kind of grapes used, but besides that... I doubt that anyone who did not taste that particular batch can select the best wine.
Personally, I get most of my wine (couple of cases a year) during a tasting trip to Finger Lakes. Then get the rest (mostly French and Californian wines) in that huge Latham wine store at Exit 6 (I guess it's called All Star Wine)
The sale of wine is pretty much inelastic. so all that will happen is that the quantity of wine sold will be split up by more stores, hurting the existing stores (mostly mom and pops) and marginally adding a few dollars to the likes of Mr. Golub sales. ... said hrgreen on Dec 17, 2008 at 2:57 PM
You raised very interesting question.
I hoped that the availability of wine will encourage young people to consider it as an alternative to beer. Wine is good for health while beer isn't.
New York and California have the lowest beer consumption per capita but the highest wine consumption. These states have the lowest BMI of their residents too.
http://manyeyes.alphaworks.ibm.com/manyeyes/datasets/fatness-of-americans/versions/1.txt
http://manyeyes.alphaworks.ibm.com/manyeyes/visualizations/beer-consumption-by-state
I can't see how this helps small New York vineyards, either. It's tough enough to get locally grown produce and products in the big supermarkets. Do you really think it's going to be any easier for locally produced wine? ... said Beaver on Dec 21, 2008 at 11:50 AM
You see, New York does not have the best climate for grapes. There is simply not enough sun to allow grapes gain all the sugar they can. As a result, I barely can find any sweet reds grown in New York.
Most of New York wines will always be 3rd grade. There are always some "good" wines among "fair" but they need to be hunted for, and not even in wine stores. So much different from Europe where I can pull literally any bottle from a shelf and it will be either "great" or "fantastic".
... said Lu on Jan 2, 2009 at 12:30 PM | link
Lu....
you are crazy
New York is known for sweet red/white hybrid and native varietals. This is what New York does best....especially the finger lakes....... California is known for Cab for the most part at higher alcohol levels and extreme extraction....(a certain style) Long island (is similar to european wines as they have a slightly lower alcohol level and more earthy minerial qualities)
If the budget passes the consumer will win and loose...(easier to buy wine but a very limited selection)
The grocery stores will cary wines represented from each distributor but only the top 200-300 sku's.
New York wines will have a very hard time getting into these stores with the Wine and Grape foundation (markets and promotes new york wines) being eliminated from the budget
The prices will go up on your favorite new york wines (excise tax increase) and therefore New york wines will have a difficult time competing against those Mass-Produced Wines from Cali, Europe, and Australia (it will keep them out of the Grocery Stores)
Easier Access to wine but the quality will deminish and you will have a difficult time finding unique and local products
I am not saying that i believe grocery stores shouldnt be able to sell wine, but i am saying that liquor stores need something in return (they will loose sales)
Give them the ability to sell Beer, Special cheeses/meats limited grocery licence, mixers, and drinking accessories.
Level the playing field so everyone has a chance to compete and then the consumer will be happy the liquor stores who take advantage of an oppertunity to expand the products they sell will be happy, and the grocery stores will be happy
... said brandon on Jan 13, 2009 at 3:31 PM | link
Having lived in states where at one end of the scale, wine (and liquor) are sold in grocery stores to the other where you can only buy wine,beer, and liquor from the state owned establishments, and a few years here in the Empire State, I think the persons who pointed out that the liquor stores will survive by having a better selection are very correct. They will also survive by having better (convenient) location than the big grocery stores.
In Ca, there are lots of corner liquor stores as well as wine in the grocery stores. No one who *likes* wine buys it in the grocery store.
In Wisconsin, there is wine and liquor in the grocery stores, but it is a separate 'store within a store' and they generally have decent wine.
Then there is NH and Mass...
If you think a 10% margin for a liquor store is tough, try being a grocery store. A *good* margin there is 1-1.5%. They like the idea because it will make them plenty of money selling jug wines and SoCo.
Tough call. I'll still be ordering my wine direct from the vinyards, going to the wine store in Latham Farms and doing what I do today...Invite over friends who always bring good wine!
... said komradebob on Jan 13, 2009 at 8:36 PM | link