NY Again Mulls Sale of Wine in Grocery Stores

Paterson's plan to have New York join the 35 states that allow supermarket wine sales included more compromises for liquor stores, many of which have long opposed the idea. The governor estimated that a store franchise fee could bring New York $92 million in the 2010-2011 fiscal year.

Grocery stores, some wineries and grape growers, and other businesses were elated at the new proposal. Paterson attempted to sweeten the deal for opponents by allowing liquor stores to sell directly to restaurants and other retailers, put an ATM on premises and open more than one store.

New York allows only one liquor license per business, so the industry hasn't been able to create chain stores, which is the way grocery franchises have expanded.

(...) But many liquor stores, vineyards and other businesses remain unsatisfied with Paterson's plan, arguing they wouldn't benefit enough from the perks added to offset potential harm to their business.

"It is a completely phony compromise that provides cover for the big-box stores to crush our business," said Michael McKeon, spokesman for The Last Store on Main Street, a coalition of small businesses opposing the change.