Wine sales in grocery stores overdue
Connecticut grocers are again asking for a change in state law to allow the sale of wine in supermarkets. Consumers support this overwhelmingly. So why is it an uphill battle to change this law?
This proposal is not “the big guy” supermarkets against “the little guy” package stores. There are so many local foods stores, like my family’s, that would benefit immensely from the passage of this bill.
Most consumers and Connecticut taxpayers understandably can’t make sense of the current law prohibiting supermarkets from selling wine. The reason: the state is still operating under rules developed during a different era (Prohibition). Allowing the sale of beer in grocery stores did not substantially affect the market. Similarly, it is likely this change would have no effect at all on the existing market other than to expand it.
Forty-two states and Washington, D.C., currently allow the sale of wine in grocery stores. This policy change would bring Connecticut into line with most states in the country, including our closest New England neighbor, Massachusetts. It is a common-sense change that takes into account the busy lifestyle most of us live.
Being a wine aficionado, I am happy to call many wine shop owners my friends. We have talked at length about these issues over the years and they understand that to succeed as a business they need to differentiate themselves, just as my grocery stores have done. Many of them offer newsletters with special events to introduce and sell wines they hand selected, as I do with the local produce. The experience of other states shows that grocery store wine sales do not significantly affect the sale of wine in smaller package stores. Research shows the added convenience of grocery store wine sales increases the size of the total market for wine resulting in more sales, not less. Nevertheless, the package store lobby annually claims the sky will fall in an effort to preserve their monopoly on wine sales at the expense of Connecticut residents. It is time for lawmakers and the governor to finally reject this anti-consumer policy.
We all want the best for our small, locally-owned package stores, and they have nothing to fear. Beer sales in grocery stores did not kill package stores and neither will wine sales. Consumers will still use package stores for their wine, spirits and beer, especially when looking for additional brands and expert guidance. Grocery stores will sell a limited number of brands of wine, driven by convenience, and will not invest in staff expertise.
Our family’s stores will celebrate their 100th anniversary this year. When Geissler’s began, we didn’t have to worry about pharmacies, convenience stores, gas stations, big box stores, massive online resellers, food delivery services and restaurants all selling the same products as us. Despite these competitors, we have survived and thrived through operational excellence, friendly service and finding niche products. The opportunity to sell wine, a natural pairing with food, in my grocery store — and therefore compete with others the way everyone competes with me — would be a game-changer.
As we consider this policy change, let’s not forget Connecticut agriculture. Increasing the number of outlets selling wine in Connecticut will lead to an increase in wine production in the state. For several decades — and at considerable expense — Connecticut government has wisely invested in marketing Connecticut wineries. There has been an increase in the number of locally produced wines each year.
This policy has had the effect of preserving farmland that might have otherwise gone to development and added jobs in the agriculture sector. By expanding the market for Connecticut-grown wines we would have an opportunity to create new businesses and new jobs within a sector of our economy that has been in decline in recent history.
Then there’s our state budget: it is conservatively estimated that wine sales in grocery stores would generate nearly $2 million in additional sales tax revenue per year. While the state currently enjoys a large budget surplus, history shows that the financial health of state government is subject to rapid fluctuations that are often influenced by events beyond the control of the governor or the legislature. Added revenue to fund important state programs is another legislative reason to support this law.
The opportunity to increase revenue to the state by up to $8 million over the course of the next four years should not be ignored, especially when many families are struggling under economic circumstances that might require them to access additional taxpayer-funded government services.
If the legislature is looking for opportunities to grow Connecticut’s economy, increase revenue to the state budget, and modernize lifestyle choices in a manner that matches the needs of today’s consumer, this proposed policy change offers no downside and only a series of benefits. It is an easy win for everyone. The benefits will be realized immediately by Connecticut consumers, grocery retailers, the local wine industry and Connecticut taxpayers.