As many of us remember, last year the issue of whether wine should be sold in grocery, supermarkets or convenience stores was on the table. It was bounced – and should have been as it would have produced a very one-sided, unfair scenario where these stores could sell wine but wine stores could not change their business models.
The compromise on the table right now looks more promising. According to WineSpiritsDaily, a trade publication: "The 'compromise' would allow liquor stores to sell directly to restaurants, bars and c-stores; install an ATM machine on location; and open more than one liquor store in the state.
Right now New York only allows one liquor license per business, hence no liquor chains in the state. Paterson's proposal would allow liquor stores to form cooperatives to drive down costs through joint purchasing for volume discounts. It would also extend the credit window allowed by wholesalers to retailers from 30 to 60 days, which gives liquor stores more flexibility. In addition, they could sell wine publications and other wine products, newspapers, gourmet foods, gift baskets, mixers and cigarettes, among other things." Wine stores would also be allowed to sell beer.
While many liquor stores still don’t want any changes, at least these seem to be fair. They give both sides the chance to change and further develop their businesses in a way that benefits consumers.
My colleague, the New York State Wine Examiner, has a much more detailed analysis should you be interested in the details.
Feel free to add your thoughts below.
Comments
Bad idea! "It would also extend the credit window allowed by wholesalers to retailers from 30 to 60 days, which gives liquor stores more flexibility."
Fewer restrictions = better opportunities. Giving wholesalers the legal right to run their own businesses and set their own terms seems like a good idea. Combined with the ability to buy cooperatively, open multiple locations, and sell a broader product line, this sounds like an opportunity for growth.
You are forgetting one thing. The current liquor laws small store owners have been forced to live with, were created just after prohibition. For 80 years stores have not been able to own more than 1 store. Groceries, convenience & drug stores are well established and many are chains. How can that even out the playing field? The main goal of supermarkets is to make a killing by charging wine distributors placement fees for prime shelf space. Bye bye NY wines Mr. Whiting! To be fair, get all the laws changed first and give the liquor stores a start. Give them 3 - 5 years to get established. Only way to give fair competition.
Sounds like a great plan by Governor Patterson this year, certainly far more thought out than last year's version. Regardless of what spin is coming out from either side it is clear the Governor's office did a decent job incorporating ideas from both sides of the debate.
Boost to the consumers, tax revenue, and the NY wine economy in a year when that is all in desperate need!
Free the wine! Save the farms! The movement is local, sustainable, green, watching our carbon footprint. With more people having more access to NYS wine, more people will buy NYS wines. We have an amazing award winning industry that is already supplying billions to the NYS economy. Let's let them grow some more, and keep the pretty Finger Lakes surrounded by rolling vineyards and not condos!
There are some good proposals from the Governor, but extending the credit window is a terrible idea. Unless wholesalers are able to extend their own credit terms with suppliers (highly unlikely) then the whole system will collapse...I wish Albany would stop trying temporary budget fixes...they almost never work and usually just make matters worse.
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