Organizations Call Upon Governor to Allow Wine Sales in New York Food Stores

ITHACA, NY (02/07/2012)(readMedia)-- The New York Wine Industry Association, the New York State Wine Grape Growers Association, the New York Farm Bureau, the Business Council of New York State, the Food Industry Alliance of New York State, the New York State Restaurant Association and allied businesses call upon Governor Andrew M. Cuomo to continue what former Governor Hugh L. Carey did to bring the New York wine industry to life.

"New York Farm Bureau has long supported the sale of wine in grocery stores because of the enormous opportunities that it would provide to New York's wineries and grape growers," said Dean Norton, President of New York Farm Bureau. "Studies have shown that making this common sense modification in state law would create more than 6,000 jobs in wineries and related industries and produce more than $70 million in new sales tax revenue. It's long past time that we remove this barrier to consumer choice and job creation and become the thirty-sixth state to make this important change."

In 1974 New York grape growers and Mark Miller, who founded the Benmarl Winery in the Hudson Valley, asked Governor Carey to re-formulate the winery license so grape growers could operate farm wineries profitably. Governor Carey led the way with a Governor's bill – the Farm Winery Bill. He signed that Bill into Law in 1976, over objections from liquor stores, and New York wineries increased in number. Today New York wineries claim top prizes in international competitions.

Yet while more New York wineries gave liquor stores new selections of wine to sell in the late 1970's, liquor stores closed showing that stores close for reasons other than competition. In states that allow wine to be sold in food stores liquor stores thrive even in the same shopping plaza as the grocery store.

In 1974 there were 19 wineries in New York State. Today there are more than 300 wineries. In 1974 there were 4,500 liquor stores in New York State through which those 19 wineries could sell their farm product to consumers. In 2012 there are fewer than 2,500 liquor stores through which more than 300 New York wineries can sell their farm product to consumers.

Wineries no longer have enough retail outlets in cities and towns to reach consumers with their farm product.

In 1984, former Governor Mario M. Cuomo initiated successful legislation permitting the sale of "wine coolers" (low-alcohol wine products) in grocery stores as well as liquor stores, which gave a major boost to New York's grape farmers, as well as a "winery deregulation" law which helped small farm wineries better market their product. Both led to major benefits for New York's economy, but once again, both were opposed by the liquor lobby. Because of those enlightened laws, however, today the New York grape and wine industry generates over $3.76 billion in economic benefits for the State of New York.

"Governor Andrew M. Cuomo should take the next step to continue this growth and allow thousands of grape growers and small businesses in rural towns to create jobs, by supporting the Wine Industry and Liquor Store Revitalization Act currently in the New York State legislature," said Don Tones, President of the New York State Wine Grape Growers Association.

National independent studies document that wine sales in food stores do not contribute to underage or driving and drinking problems. Economic studies show growth in jobs when wine is sold where food is sold including in sales, distribution, marketing, and winery supply manufacturers.

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