It’s time to allow wine sales in grocery stores
Vineyards in Connecticut have been a tradition that goes back to the founding of the state. The industry preserves thousands of acres of open space, provides hundreds of jobs and pumps millions of dollars into the state’s economy each year.
But all that is at risk. Our vineyards have been hit hard as a result of restrictions put in place due to the coronavirus pandemic.
Our vineyards need help, if we don’t grow and expand our abilities to sell our product, we may not survive. But the solution is simple, and top leadership in the state, including Gov. Ned Lamont, have already indicated support for the measure.
We need to allow the sale of wines in grocery stores.
More than 40 states already allow it, including Massachusetts, Vermont and New Hampshire. The state’s legislature continues to talk about creating parity among the wine and craft beer industries in Connecticut, but in just the past year, lawmakers have increased the excise tax on wineries while decreasing the tax for brewers. Vineyards are also now the subject of a new floor tax from which breweries are exempt.
Before the pandemic struck, we voiced our concerns with legislation that took effect on July 1 that provides advantages for wine manufacturers once reserved for Connecticut farmers. These advantages allowed vineyards to sell directly to liquor stores and restaurants. It was designed to incentivize farmers to put in the significant investment and costly labor that’s needed to produce the crop.
Allowing manufacturers who import all their grapes from out of state to also sell directly to liquor stores and restaurants puts Connecticut farm wineries at a significant disadvantage. Unlike other industries, we can’t shut down production in the face of the pandemic. Our grape vines will continue to grow and are expensive to maintain. During the initial wave of COVID-19, wineries across the state employed hundreds of people to tend to the vines daily. It’s a complex and delicate process that can’t just be put on hold.
Our proposal to allow the sale of wines in grocery stores is not an attack on package stores, which we consider partners and want to see flourish. We hope that we can work with lawmakers on proposals that will help both the vineyards and the package stores meet the increasing challenges of our industries. Even local brewers can sell beer at grocery stores, and yet package stores are still thriving throughout the state. The change did little to impact their business, but there are other state regulations that have hampered their ability to succeed. All we are asking is for parity within the industry. A recent poll shows nearly 70% of state residents already support selling wine in grocery stores. Today Connecticut boasts nearly 40 wineries that attract residents from throughout the state to their tasting rooms. According to a study from UConn, farm wineries have created more than 1,000 jobs and inject more than $150 million into the state’s economy annually, not to mention the significant taxes we pay to the state. Vineyards also provide intangible benefits. Our farms are part of important ecosystems, providing habitat for pollinators and wildlife, as well as helping to reduce climate change. Thousands of acres that could have gone to over development have instead been saved as agricultural lands.
The farms’ beautiful landscapes are not only treasured by Connecticut residents, but they also attract visitors from outside our state, who spend their money at local restaurants, inns and other small businesses. But today, due to the pandemic, most of the vineyards are relatively empty. Some farm wineries have been forced to close their tasting rooms, and some wineries have experienced a more than 50% decline in sales, according to the Connecticut Vineyard and Wine Association. Farm wineries are suffering from a lack of market access, and the ability to sell in grocery stores will help restore the loss of sales. If the state doesn’t act soon, the likelihood of permanent closures of farm wineries will become a reality.
The state’s vineyards need another avenue to sell their product if they are going to survive. By allowing the sale of wine in grocery stores, while preserving 10% of the shelf space for Connecticut farm winery products, we could help to ensure the industry’s future and preserve our rich agricultural heritage for generations to come.