By ARIELLA MONTI and ALEX COSTELLO
In addition to charging grocery stores franchising fees for the right to sell wine, the proposal would increase the excise tax on wine from 18.9 cents per gallon to 51 cents. The measure could produce $150 million in revenue for the state over the next three years, according to Paterson.
While the convenience of being able to buy wine in a grocery store might be attractive for consumers, it is a major concern for wine and liquor store owners, who contend that it could put their livelihoods in jeopardy.
"We feel that if this happens, it will put a lot of stores out of business," said Roger Barbiero co-owner of Village Liquor Store on North Village Avenue. "If we lose sales, most of us will lose our businesses."
Barbiero said that 64 percent of his sales come from wine and anticipates a 20 to 30 percent hit if the proposal passes.
"The items that would be selling in the grocery stores competing with us would be the top national brands that bring people into the store in the first place," said Barbiero noting that Cabot, Yellow Tail and Kendall Jackson are some of the more popular brands. "Our plan would be to try to exist with more esoteric mix but when you think about it, if you lose the traffic it might put us in peril. I'm not sure if we could even survive that."
Those opposed to the bill also said that having wine in grocery stores would make it more readily available to teenagers, which would increase underage drinking.
"At the liquor store level the identification process is much tighter than at a grocery store or a deli," said Mike Hatem co-owner of Bargain Liquors on Sunrise Highway. Hatem said that 60 to 65 percent of his business comes from wine sales. As the law stands now, grocery store employees must be at least 16, while those who work in liquor stores must be 18.
In response to Paterson's proposal Village Liquors and Bargain Liquors have complied signatures from customers who are opposed to the bill.
"We must have collected close to 1000 signatures in the area," said Barbiero of the petition that has been sitting by the register for about a month. "The support for us has been tremendous."
In a week Hatem's store was able to obtain 180 signatures, which he plans on sending to Albany for Paterson's review.
However, the local wine shops aren't the only ones sending petitions to Albany. All 49 King Kullen grocery stores throughout the state have a petition in support to Paterson's bill.
"We think it's a good proposal," said Tom Cullens, vice president of King Kullen Grocery Company. "We think it's good for agriculture, we think it's good for wineries on Long Island and in the state so we are trying to see if we can get that."
Cullens said that since wine complements food it should be offered to shoppers. "Especially in our Hamptons stress we are getting a lot of people from Europe saying 'Why don't you sell wine? It's part of food,'" said Cullens.
He also said that King Kullen would make a commitment to sell as much Long Island and New York State wine as feasibly possible, adding that it would help the wineries expand their business.
Asked if selling wine would increase underage drinking Cullens commented "It depends on the security and the sophisticated safeguards to protect against underage purchases." He said King Kullen has not had any violations in the past two years.
According to Bill Crowley, a spokesman for the New York State Liquor Authority, however, the number of sales to minors in supermarkets, which are allowed to sell beer, dropped by almost half from 2004 to 2008. In 2004, the authority recorded 973 sales to minors statewide. In 2008, there were 501.
"There's about 16,000 grocery stores," Crowley said. "So just by sheer number, we'd expect to see more. We don't want to see any sales to minors, but we are pleased with the progress that the stores have made."
As for liquor store owners' concerns the bill would put them out of business, Cullens said that the competition is good for consumers. "I think if you do what you do well, you'll survive," he said. "I think the marketplace will determine what businesses are viable and what businesses aren't."
For now, wine store owners are waiting to see if Paterson's proposal successfully makes it way through the state Assembly.
"We have a lot of repeat business and a lot of good relationships with our customers that hopefully keeps them coming back," said Barbiero.
Comments about this story? AMonti@liherald.com or (516) 569-4000 ext. 282.
