Broad Based Coalition Applauds Governor's Wine Industry and Liquor Store Revitalization Act

ALBANY, NY (01/19/2010)(readMedia)-- New Yorkers for Growth and Open Markets, a statewide coalition of advocates seeking changes to New York's liquor laws, today praised Governor Paterson's proposed FY2011 Executive Budget for including a new, comprehensive proposal to allow the sale of wine in grocery stores – the "Wine Industry and Liquor Store Revitalization Act" – that now also features significant benefits and changes for the state's liquor stores. This updated, inclusive approach to the issue of wine in grocery stores will directly assist both New York's wine industry and its liquor stores, while at the same time generating $147 million in desperately needed new state revenue with no new taxes (in addition to estimates from economists that it will net at least another $22 million in annual state revenue on an ongoing basis). New Yorkers for Growth and Open Markets is comprised of New York State wineries, grape growers, liquor stores, business organizations, grocers and farmers advocating for smart, comprehensive changes to the state's antiquated liquor laws that will result in increased consumer choice and opportunities for economic growth.

"We are grateful to the Governor for his continued leadership on an issue that is so critical to the sustainability and growth of the New York wine industry." said Scott Osborn, President of the New York Wine Industry Association. "The inclusion of the much needed reforms for our partners, the liquor stores, makes this a comprehensive revitalization package we whole heartedly support."

Bob Demeo, a liquor store owner in Troy, NY for nearly 30 years, said, "After last year's wine in grocery store proposal included nothing to help liquor stores, we said to Albany: 'Fix the liquor laws, make this work for our industry too, and give us a chance to compete on a level playing field.' And you know what? They listened. The fact is that there are liquor store owners in New York who support sensible changes like these that can improve our businesses and enhance our bottom line."

"The New York State Wine Grape Growers join together with our fellow small business partners around the state in applauding Governor Paterson for his commitment to the growth and development of the Grape Growing and Wine Community in New York," said Jim Bedient, President, New York State Wine Grape Growers. "Allowing for the sale of wine in food stores will create new jobs and new revenue for our state while providing greater consumer choice for all New Yorkers. New York is home to more than 1000 grape growing farms and over 270 wineries who welcome the opportunity to place their product in new retail markets. Governor Paterson's proposal will continue to help our growers, vintners and wineries rejuvenate our industry and restore New York to one of the premier wine and grape producing states in the nation."

Paul Fernandez, owner of the Union Market (Specialty Foods) independent grocery store in Park Slope, Brooklyn and Met Foods Supermarket in Soho, said, "It is important to recognize how broad the positive impacts of this new proposal will be and how diverse the various stakeholders are who will benefit. While I am obviously happy that it will help independent grocers from Washington Heights to Jackson Heights, it will be good for liquor store owners and farmers too. That just makes sense." Mr. Fernandez is a past President of the National Supermarkets Association, the trade group for independent Latino grocery stores in New York.

"New York Farm Bureau has long supported allowing wine in grocery stores, as well as modernizing the liquor laws so that retail liquor stores can also succeed. Our organization stands behind the Governor and his thoughtful consideration of this important economic development initiative for New York's growing wine and grape sector," said Dean Norton, President of New York Farm Bureau, the state's largest agricultural advocacy organization for family farmers.

"The overall impact to the New York economy will be extraordinary if the market for New York wine is opened up," said Bill Lutz, owner of Waterloo Container Company in upstate New York. "The growth of the supplier companies to the New York wineries, like mine, will be worth millions of dollars to the local economies and ultimately the State."

"The sale of wine in grocery stores will help New York's wine industry, grape growers while producing new revenue for the state," said Heather Briccetti vice president of government affairs of The Business Council of New York State, Inc. "The current proposal will also help liquor stores compete in the marketplace. This plan will create jobs and increase economic activity in New York."

Scott Wexler, Executive Director of the Empire State Restaurant & Tavern Association said, "New York State has had a long-standing need to update its liquor laws, and this comprehensive approach will go a long way toward modernizing an antiquated system. Not only will it help liquor stores, wineries and grape growers, but other small businesses such as restaurant or tavern owners are likely to benefit as well – and the more we can support small businesses, the better the economic outlook will be for all New Yorkers."

"New York State has become too expensive for business and for consumers," said Kathryn Wylde, President and CEO of the Partnership for New York City. "Allowing wine sales in grocery stores is a great example of a win for business and consumers, while raising new revenues for state government. We urge the legislature to support this plan and to look for other opportunities to unleash the private market from overly prescriptive laws and regulations."

Jacob Steinmann, owner of Steinmann's Delicatessen in Yorktown, NY, said, "Not only will this become an incredible convenience for my customers, but as a small business owner and an active member of this community I must say that I am extremely pleased with this new focus on also helping liquor stores. To me this is a real winner if at the end of the day it can help all of us small business owners at the same time and strengthen the business community we are all part of."

The "Wine Industry and Liquor Store Revitalization Act" included in Governor Paterson's Executive Budget proposal will:

• Provide new opportunities for liquor store owners by eliminating prohibition-era restrictions that have traditionally burdened New York liquor stores. This would give them the ability to expand their product offerings, increase the number of stores they are able to own, have access to new sales markets, and several other changes that have long been advocated by liquor store owners themselves.
• Help New York's wine and grape growing industries by allowing the sale of wine in those outlets currently licensed to sell beer. It would open up significant new markets for wineries, thereby allowing New York to finally join the 35 other states that benefit from expanded wine sales. Economic development in our grape growing and agricultural sector will spin off jobs and benefits throughout New York State. In addition, consumers will see significant benefits from these new choices and a free market for wine in New York.
• Raise significant revenue for New York State. Not only is this initiative expected to raise $147 million in direct new revenue over the first two years from licensing fees, but there will be significant additional revenue generated by increased wine sales, new economic activity in the wine and grape industries, and new job creation.

The Governor's budget initiative is similar to a comprehensive bill currently pending in the New York State legislature, also known as the Wine Industry and Liquor Store Revitalization Act, introduced by Senator Liz Krueger (D-Manhattan) and Assemblyman Joe Morelle (D-Monroe County) and developed with input from New York liquor stores. The bill is currently sponsored by 36 legislators from across the state and this inclusive approach to the issue has earned editorial support from numerous daily newspapers from Long Island to Buffalo.

Troy liquor store owner Bob Demeo concluded, "With New York State continuing to have huge budget deficits, the time for burying our heads in the sand and hoping for the best is over. There's an incredibly important conversation taking place in Albany and our liquor store industry needs to be at the table helping to create the policies that will help us to grow and thrive. Change is coming, and I for one want to be part of making it work for my business."

-- 30 --