My Letter to Senator Jeremy Cooney Regarding Wine in NYS Grocery

Senator Cooney,

New York State is the best state in the country to produce alcohol because of our farm winery, distillery, and brewery laws. That is why we have the fifth most wineries, second most distilleries, and third most breweries in the nation. In my over twelve years of working in the wine and spirits industry in this state I have become a champion for the producers of this state and the wonderful products they bring to life. 

I have the unique opportunity to travel the country from time to time because of my involvement in the craft spirits movement. As a Senior Writer for Artisan Spirit Magazine, a judge in several international and national spirits competitions, a member of the American Distilling Institute, and someone who has been involved with the American Craft Spirits Association — I have seen and tasted firsthand how ahead of the curve NYS producers are. In all three categories.

We are only ahead of the curve and thriving because of the combination of these farm producer laws and the seemingly archaic structure of our alcohol beverage control laws. 

Allowing the sale of wine in grocery stores directly threatens all of the progress we have made over the last almost ninety years since prohibition.

My time working within the industry in our state has ranged from wine and spirits retail manager, wine bar manager, assistant distiller and wholesale supplier rep for a farm distillery, and a distillery consultant. I deeply understand the industry from top to bottom and have my thumb on the pulse of what producers and wholesalers are feeling.

Every single winery, distillery, and wholesaler in this state that I have the privilege to call my friends and colleagues are terrified of the ramifications of wine being sold in grocery stores. Our network of specialty wine and spirits shops in this state are what keep these producers and wholesalers afloat. At the end of my letter I will share some statements from some winemakers.

Wine has twice the profit margin of spirits and losing the exclusivity of wine in these specialty stores will shutter at least half of these stores. We have around 750 wineries in NYS (according to vinepair.com) and all but perhaps five NYS wineries produce far too little wine to satisfy the demands of the two largest grocery players in the state. Losing half of their potential and existing customers would put many out of business very quickly. Unfortunately this is where we see distilleries suffer as well. When half of a distillery's potential and existing retail customers disappear, they start struggling and closing along with the wineries. And as wineries and distilleries close, tourism suffers.

The same would be true for most wholesalers. A full list of those with wholesale licenses can be found in NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE REPORT NO: MA0008R2 Publication 574 New York State Registered Distributors of Liquor and Wine. The report has 24 wholesale licenses listed on each page and is 119 pages long. New York State has the best variety of available options in wine and spirits in the nation, and possibly even the world, because of all of these wholesalers and importers. Using the 40 existing states that allow wine in grocery as case studies, we already know what wine in grocery looks like. Wine in grocery will favor large corporate conglomerate brands that are distributed by the top two or three wholesalers in the state. Even with provisions in the law for the inclusion of a small number of NYS producers on shelves this would not be different here than anywhere else.

As the rest of the wholesalers lose their customers and are strong-armed away from the opportunity to sell into grocery stores, our standing as the best market in the world for wine and spirits will evaporate. And consumers will greatly suffer.

The unfortunate reality is that wine being sold in grocery stores threatens thousands of small businesses, tens of thousands of jobs, the incredible options available to consumers, and our very own farmers growing grapes and grains. 

I beg of you Senator, please consider taking a strong stance against wine being sold in grocery. Disallowing this proposed change is in the best interest of not just your constituents, but our whole state and the entire beverage industry.

Thank you for your time and consideration,

Your constituent — George B. Catallo of Greece, NY

PS below are the aforementioned statements from winemakers.

"One thing know for sure from my extensive travels across the U.S. is that New York is home to the most dynamic and thriving wine scene anywhere. Why? Simply because we have a dynamic, independent retailer base that makes it so. Wine in grocery stores would be a further consolidation of wealth into the hands of large corporations that will end up with less choice for the consumer and purchasing power in the hands of a few. The current landscape is one rich in diversity of products and at the same time supports small business which is the lifeblood of our communities." Rick Rainey of Forge Cellars

"I'm reaching out to express my concern with wine being allowed in grocery. I have a small family run winery in the finger lakes, Nathan K/Hickory Hollow: we produce around 2,000-3,000 cases of wine annually. Being small production, like most wineries here, as well as dealing with the hardships of climate change, we can't currently compete with most regions when it comes to competitive pricing. My point being, we rely on the support of independent wine shops to help increase brand visibility, awareness, as well as the direct sales. see absolutely no benefit to the small wineries in our region from this bill. Allowing wine in grocery stores will mean less wine buyers (jobs) and more placements of big industrial wines that aren't from the state that are priced much cheaper. I've been to many states that allow wine in grocery stores, and there's zero placements of small producers. While this bill might make shopping more convenient, it's going to be at the expense of the majority of New York wineries. l'd appreciate your consideration of my opinion, as it's shared by most of my colleagues who operate on smaller scales." Nathan Kendall, Nathan K./Hickory Hollow

"The winners aren't going to be small, sustainable wineries. It's going to be big national and international brands who can play on that scale and at a very low price point...if they want a muti-store deal, our volumes are quite small and we can't guarantee that they will be in stock all year round...harvest is once a year, and what we make is what we make... knowing what grocery stores look like in other states, I'm just not sure that there would be much allocated to small, premium producers." Colleen Hardy, Living Roots