A proposal in Gov. Paterson's executive budget to allow grocery stores to sell wine has several local liquor stores worried they could lose their largest profit margin.

Jack Clark, part owner of Clark's Liquor Store on Owasco Road, Auburn, said the change could potentially put him out of business because customers would no longer need to come to his store.

“Wine sales equal two-thirds of our business .... if we lose the wine aspect of our business we are out of business,” Clark said. “There isn't enough liquor business to stay in business.”

According to Paterson's budget proposal, it is estimated the state could make an additional $105 million in excise taxes next year by letting grocery stores sell wine. That money could go a long way to raise additional revenue to fund a struggling state budget.

Currently, grocery stores are only allowed to sell beer and wine coolers.

Before the change can be finalized, it will have to be approved by the state Senate and Assembly and then go back to Paterson for final approval.

If the proposal were to pass, Clark said he would not be surprised to see fewer people walking into his store to purchase wine when they can buy a bottle while shopping for groceries.

“The state is not concerned about where the money comes from as long as they make more of it,” Clark said.

But Jo Natale, director of public relations for Wegmans, said that while customers in other states have benefited from the convenience of picking up wine and food in one location, liquor stores still flourish.

“Our most successful stores that we have take advantage of the synergy between wine and food,” Natale said. “We believe that there is plenty of room for everyone. In plenty of other states the grocery stores are allowed to sell wine and the liquor stores are still doing fine.”

Gary Barletta, owner of Aurora's Long Point Winery, said he had mixed feelings on the situation.

“Obviously I think anything that can increase my sales is a good thing, but I also don't want to step on the toes of the liquor stores and see their business suffer,” Barletta said.

While he understands the convenience of buying food and wine from the same business, Barletta said he believed the liquor stores' ability to carry a larger selection would attract costumers looking for a specific brand or flavor.

“I am not sure how much of a boost in business I would see if grocery stores sell wine because they will not have a large selection of wine available,” Barletta said. “A liquor or wine store will offer a larger selection with the kind of personal service you can't get from a grocery store. Will this still impact their sales? Yes it will. But to what degree I couldn't say.”

Staff writer Nate Robson can be reached at 253-5311 ext. 248 or nathan.robson@lee.net