USA being a Federal system of government like India, allows the States to have their own alcoholic drinks marketing policy. All but about 10 states, including the wine producing states, California and Washington, allow supermarkets to sell wine. New York State allows the sale only through the 19,000 authorised wine and liquor stores, like in Delhi.
Also like in Delhi perhaps, the government and the retail shops in New York State have fought strongly against any proposal to allow such sales. The New York Governor was motivated to suggest the change as he is faced with US 15 billion budget deficit and he feels that this move in combination with doubling of wine taxes will help boost wine sales. The State also hopes to make additional money on selling the Franchise fees for these supermarkets which already have the beer selling licenses.
Agricultural commissioner Patricia Hooker agrees and said that the proposal would 'create a spike in the sale of wine.' The state hopes to bring in about $100 million in the 2009-10 budget by charging a franchise fee to any supermarket which already sells beer and wants to sell wine too.
New York, like Delhi, has so far lagged behind other American states in allowing supermarkets and convenience stores to sell wine. But Paterson thinks the state is ripe to revisit the idea as a way to help the upstate economy.
As may be expected, Wegmans, a leading upstate supermarket chain, applauded Paterson's plan Monday, saying the law is long overdue. "We love the idea of supermarkets being allowed to sell wine," said spokeswoman Jeanne Colleluori reportedly. "We have supported this idea for decades because we believe it's a great service to the customers."
But liquor stores immediately criticized the proposal, saying it would lead stores to close and therefore damage the local economy.
The state’s largest business group is praising Gov. David Paterson’s proposal to allow grocery stores and convenience stores to sell wine. The Business Council of New York Inc. called the proposal good for the economy and good for consumers.
Selling through Retail is a big handicap in wine consumption in India. Maharashtra, Haryana, Chandigarh etc have during the last couple of years allowed the sale through super markets and the systems are in the process of being put in place. Delhi has remained adamant mainly due to political reasons. The government continues to lump wine with all alcohols. Issue of ‘wine shops’ which are licensed to sell at an annual high license cost, has also to be sorted out.
With the recent strong victory of the Congress party, one hopes that Ms. Shiela Dixit, the Chief Minister of Delhi will propose and allow sale of wine through supermarkets and show it is more progressive than at least- New York.
Subhash Arora |