Greg Vernon

19Jan/100

Wine + Supermarkets = Good

I'm going to try to keep the math simple here so maybe those individuals in Albany who voted this down can get the message.

Of course, I'm sure my position - or even the fact I have a position - on this issue will shock people.  I mean, as I Mormon never having a drink in my life supporting increased liquor sales?  Of course that isn't normal!  But the issue at hand isn't necessarily about wine or liquor but rather is about the supermarkets' proprietor's freedom to sell what they think their clients want.

I can understand why it failed; the liquor stores will - should the measure pass - face a decrease in sales.  That will, of course, cause the state senators and assemblymen/women problems during their re-election campaign.  Not gunna lie, kind of a bad reason to vote against something that will help consumers and the state coffers, but whatever.

Anyway, moving on; the biggest reason why the liquor store owners (aka The Last Store on Main Street - how subtle) are against this bill is that they will inevitably go completely out of business due to big grocers selling wine at a cheaper price and at greater convenience. Huh.  Run-on sentence aside, there really isn't that much I can say to defend that statement.

Second, is the concern supermarkets will primarily sell wine grown outside New York.  According to an MPNNow article a review of the wine menu at Wegman's Next Door Bar and Grill shows less than 5% of the wines available are produced within the State border.  I'm curious how much wine this group thinks New York State makes.  New York doesn't produce the most wine in the United States.  We don't even come in second place.  New York holds the high honor of third biggest wine producer. In the United States. Woot?

The shear fact of the matter is the Next Door Bar and Grill holds a spectacular percentage of New York wines.  Of course, it could be higher but when the United States as a country only holds a 3.8% market share on wine exports having a 5% of your menu devoted to local wines isn't bad at all.  Even if only 3% of the wines available for purchase are made in New York, that is still more than - statistically speaking - should be available based on wine produced.

The last store on main street is also concerned stores will close and jobs will be lost.  No doubt stores will close but as grocery stores add new product they will need to hire new employees trained in wine.  If they don't, liquor stores which remain open will have an intellect advantage and may even see improved sales as convenience shoppers move into the premium market.

As to the amount of store closings, I can't say for sure.  Based on the shear amount of liquor stores (I can think of at least 5 right along the Pittsford/Perinton border) the damage will likely be minimal.  Perhaps, should grocers start selling wine, there will only be 3 or 4 in this tiny patch of land; but like I said, I can't say for sure.

In conclusion, the market for wine is huge in the United States; the average American drinks 7-15 liters per year.  The shear fact of the matter is, grocer can't devote enough shelf space to truly capture the market.  "Small" stores, with the ability to devote huge amounts of shelf space to wine, will still have a place in the market and still employee knowledgeable staff to help customers.

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