WIGS redux

J

Jeff Grossman

Jeff Grossman
Wine In Grocery Stores, that is.

We have discussed this before. The latest bill introduced to Albany is a better-balanced item (from an email received today):

Permits grocery and drug stores to sell wine
Allows the sale of bottled water, mixers, juice, soda, cigars and accessories, newspapers, locally grown farm products and food typically consumed with alcoholic beverages, gift bags, wine refrigerators and coolers and wine making supplies in licensed establishments
Permits ATM machines in liquor stores
Allows multiple licenses
Allows licensees to conduct wine tastings
Requires payment of a one-time franchise fee based on gross sales
Grocery and drug stores will pay an annual fee of $500 for a wine license. If the holder has 2 or more licenses, the annual fee for each additional license will be $1,000. Fees collected will support promotion of NY wines and 10 percent of the fees collected (up to $1 million) will go to farmland protection programs
Issuance of temporary retail permits during transfer of application and while waiting for application to be processed
Allows family branding
Allows cooperative agreements in purchasing

It is interesting to note that many NYS wineries still do not support the idea. I suppose they think they won't be carried by Southern, et alia, and their chances of getting shelf-space are better with independent shops?
 
Allows the sale...locally grown farm products and food typically consumed with alcoholic beverages...
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Definition? Should make for some interesting legal arguments.

Allows cooperative agreements in purchasing
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I'm sure that never used to happen in NY.

It is interesting to note that many NYS wineries still do not support the idea. I suppose they think they won't be carried by Southern, et alia, and their chances of getting shelf-space are better with independent shops?
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It's not an unreasonable supposition. The investment and selling techniques needed to succeed in chain grocery stores are probably alien to most NY wineries. In addition, if the first thing NY grocers do is bring in buyers with wine experience in other states, or rely on shelf optimization schemes based on scan data from other states, NY wines aren't going to be seen as worthy of much space. I hope I'm wrong, but...
 
I suppose "locally grown" means "New York State produced".

As to the franchise fee, well, you know, it's a one-shot that goes straight to Albany's bottom-line without being "a new tax" so they like it. It's totally irrelevant to the big box stores because it's a one-shot.

I'm still very conflicted about this bill. On the one hand, CA stores seem to work just fine (and they sell wine everywhere). On the other hand, I bet that (what we call) crap bottles make a big difference to my local shop's bottom line.
 
In Albuquerque, being able to buy wine at any Whole Foods was a godsend. In New York, I'd probably never do it.

If I'm not mistaken, Trader Joe's has been getting away with it for years by opening an adjacent wine store, so it's already doable if you segregate the real estate.
 
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