Wine and spirits retailers in New York are fighting bills that would allow wine sales in grocery stores. “This legislation will hurt small businesses who have been selling wine for nearly a century,” says Mark Grimaldi, owner of The Cellar D’or in Ithaca, New York. “Today’s consumer is about convenience, so if they can have a one-stop shop for wine when they go and get their chicken and toilet paper then it’s going to stop them from making a special trip to a wine store.”
Since Prohibition was repealed in 1933, New York has upheld a beverage alcohol retail tier that permits only independent wine and liquor stores. For more than 90 years, the state has allowed only one retail license per entity and excluded wine and spirits chains or franchises. Many of the approximately 3,800 existing wine and liquor retailers in New York are small, family-owned businesses entrenched in their communities. “If we lose this battle, which we very well might, it’s going to affect my family, my employees, and my income,” Grimaldi says. “Even a 10% loss of business would be huge.”
In May 2023, New York state senator Liz Krueger (D-Manhattan) and assembly member Pamela Hunter (D-Syracuse) introduced bills S.6786 and A.6989, which would permit wine sales in grocery stores, and lawmakers are expected to address the issue this year. The proposed legislation could expand wine purchases to 1,900 grocery store locations and doesn’t include convenience or big box stores like Walmart or Target.
Consumers can buy wine in grocery stores in 40 states and Washington, D.C. “When friends come to visit from places like Virginia, North Carolina, and Pennsylvania, they’re often dismayed to discover the law won’t let them buy wine in the grocery store,” Krueger stated when the legislation was introduced. Hunter added: “Consumers want the convenience of purchasing wine in grocery stores where they buy their food and other beverages, such as beer.”
New York wine and spirits retailers disagree. “Our industry is well served at the beverage alcohol retail tier,” says Michael Correra, executive director of the Metro Package Store Association and owner of Michael-Towne Wines & Spirits in Brooklyn, New York. “There is a robust selection of beverage alcohol stores in Senator Kreuger’s district. We don’t have minors working in our stores and we don’t have self-checkouts. In upstate New York, most liquor stores have grocery stores right across the street like I do. Wine sales in grocery stores would demolish package stores. It’s corporate greed.”
Liquor retailers claim the legislation would grant an unfair advantage to grocery stores. “If you are going to let grocery stores become wine stores, then let a wine store become a grocery store,” Grimaldi says. “Let me sell cheeses, meats, produce, and pastas.”
In business for about 10 years, 1,200-square-foot The Cellar D’or carries close to 1,000 wine and spirits SKUs. Wine comprises about 90% of the store’s overall sales. “We are a fine wine shop,” Grimaldi says. “There is absolutely no question that our wine selection, staffing, and service will always be superior to a grocery store. I have employees who have tasted every wine on the shelf. You are going to lose that service with a grocery store.”
Empire State retailers also oppose legislation introduced last year that would allow multiple wine and spirits licenses as well as direct-to-consumer shipping for spirits. In Colorado, meanwhile, voters narrowly approved a proposal allowing establishments with a retail beer license to receive a retail wine license. Since the new law became effective in March 2023, independent beverage alcohol retailers have experienced estimated sales declines of 15% to 30%.
If wine sales are permitted in grocery stores, New York wine and spirits retailers anticipate a similar fate. “We are small businesses, and there is no way we could compete with grocery stores,” Correra says. “You would see more empty storefronts and more beverage alcohol availability. We recognize the need for a package store industry. We believe wine and liquor should be sold separately as it has since Prohibition ended. It is good for our business, but it’s also good for the public.”
Grimaldi is also concerned about the long-term future of independent, family-owned shops. “If the law changes, it will directly affect small businesses,” he says. “We’re trying to stand our ground and save the little bit of business we can do. We can sell gin, but we can’t sell tonic water. As a small New York business, we are consistently having to navigate changes and rules and laws. This is just another thing we have to worry about. We hope somebody has our back.”