Groups Oppose Direct Shipping of Wine in N.Y.

Opponents launched an effort Wednesday to put a cork in a proposal by New York Gov. George Pataki to allow out-of-state wineries to ship directly to New Yorkers.

Liquor store owners, union representatives and others said the proposal could cost New Yorkers jobs, foster more underage drinking and be a net money loser for the state.

Proponents contend that it could benefit New York wineries by allowing them to ship directly to consumers in other states. Pataki said the plan could generate $3 million annually for the state in new tax revenue.

“I know a Trojan horse when I see one. Direct shipping wouldn’t help New York wineries, it would help only the big California wineries that are behind this effort,” said Dick Reno, owner of Chateau Lafayette Reneau Winery in Hector, N.Y.

California’s $14-billion wine industry has been vigorously lobbying to overturn regulations in 26 states that prohibit direct shipments of alcohol.

Other New York winery owners have said the Pataki plan will boost their sales. New York’s Wine Grape Growers Assn. and the state Farm Bureau reiterated their support for the Pataki proposal.

Unions representing workers who transport and sell wine in New York were part of the coalition criticizing the Pataki plan.

“Direct shipping of out-of-state wine is a job killer,” said Vincent Fyfe, president of Local 2-D of the United Food and Commercial Workers.

Under the proposal, included in Pataki’s budget plan unveiled in January, wineries in states that allow reciprocal direct shipping could do business in New York if they purchase an annual license fee for $125.

They could then ship up to two cases of wine a month to any private customer in New York who is over the legal drinking age of 21.

The wineries would have to pay New York excise and sales taxes and report shipment quantities to New York.

Although New York has more than 160 wineries and ranks second among the states in wine production, it is a distant second. California produces more than 90% of the nation’s wine. Washington and Oregon rank third and fourth, respectively, in wine production.