New York is among ten states that prohibit selling wine in grocery stores, a restriction dating back to Prohibition. A 2023 Siena College poll reveals strong public support, with 75% of New York voters favoring the idea, up from 58% in 2010. The growing momentum has prompted lawmakers to reintroduce bills permitting grocery stores to sell wine, beer, and cider. Despite significant public backing, Gov. Kathy Hochul has excluded this proposal from her budget plan, sparking debates on whether it should be included in the final spending plan.
Legislative Proposals and Economic Impact
Senate Finance Committee chair Liz Krueger sponsors a proposal allowing full-service grocery stores to sell wine by paying annual fees based on wine sales, with exemptions for New York wines to boost local agriculture. Krueger highlights the proposal’s popularity and potential to enhance convenience, affordability, and state revenue.
Business leaders echo this sentiment, arguing it would create competition, lower prices, and align New York with 40 other states permitting such sales. Advocates call for dialogue, emphasizing that consumer demands and affordability must drive government decisions.
The proposal faces strong resistance from small liquor store owners and alcohol distributors, who fear devastating economic impacts. Critics, including Michael Correra of the Metropolitan Package Store Association, argue that introducing wine sales in grocery stores would decimate independent liquor businesses.
Colorado’s recent legalization of wine sales in supermarkets reportedly led to the closure of hundreds of small liquor stores, fueling concerns that New York would face similar consequences if the law changes.
Concerns About Underage Drinking and Oversupply
Opponents also worry about increased underage drinking, asserting that liquor stores maintain stricter control over alcohol sales than supermarkets might. They argue that the state already has sufficient liquor stores to meet demand and claim that introducing wine in grocery stores would create unnecessary competition. Critics emphasize the importance of maintaining a controlled distribution system to ensure responsible alcohol handling.
The proposal’s fate remains uncertain, with bipartisan support likely but not guaranteed. Some Republican lawmakers share concerns about the potential harm to small businesses and wineries. Similar efforts to change New York’s Alcohol and Beverage Control law failed 15 years ago due to resistance from small business owners and distributors. However, supporters hope growing public demand will sway lawmakers this time, highlighting the tension between economic reform and preserving traditional business models.