Connecticut remains one of only a handful of states that prohibit wine sales in food stores. There is plenty of evidence in neighboring states that suggests allowing the sale of wine in grocery stores will have little to no negative impact on Connecticut businesses. In fact, allowing the sale of wine in grocery stores is likely to yield significant benefits to Connecticut consumers and the state’s economy. Expanding wine sales to local grocery stores creates jobs, protects farmland, inspires the production of more locally-sourced wines and creates no disruption to the states three tier wine & spirits distribution model.
Selling Wine In Grocery Stores Creates Jobs and Revenue
Allowing the sale of wine in Connecticut’s food stores will create an estimated:
1,018 new jobs
Representing $47.5 million in wages
$23.9 million
Additional state revenue in the first year
$21.9 million
Additional state revenue in subsequent years
Total Economic Impact Including new wages, wine sales (and tax revenue generated)
$189.6 Million
* Stonebridge Research 2011 Group study
Acknowledging that wine sales by grocery retailers will have some negligible impact to smaller package store owners, we agree that it is important to have a plan to protect those small businesses. Providing solutions that allow package stores to maintain current profitability by expanding their portfolio of eligible consumer products levels the playing field for them. Highly consumable items such as salty snacks, various cheeses, chocolates, and gift baskets give consumers the option to purchase additional items when shopping for their beer, wine, and liquor and recover lost wine sales.
Increasing wine sales promotes local wine producers and protects farmland
Allowing wine sales in grocery stores will ultimately lead to an increase in the volume of grapes and fruits grown in Connecticut, allowing for the growth of wine production by local wineries and vineyards. This will create more jobs in the agriculture sector, protect farmland by incentivizing the growth of higher value crops, and inspire new growers. Local products are a true competitive advantage for Connecticut’s grocers and CFA retail members would welcome an opportunity to showcase “local” wine, agriculture and tourism in their stores.
Three Tier System
Grocery store wine sales do not negatively impact spirits distributors; in fact, Connecticut’s distributors stand to benefit from increased wine sales. Furthermore, distributors also benefit from the decreased cost to serve (CTS), as grocery retailers are generally more efficient than package stores. Increased sales at a lower cost to serve is a winning formula for any business.
This debate boils down to convenience and leveling the playing field for who is eligible to sell wine at retail. Allowing traditional grocery stores to sell wine, returns wine to its appropriate and traditional role as part of a meal, encouraging healthy consumption, at the same time increasing consumer choice and convenience. The time is ripe to allow the sale of wine in CT grocery stores