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ARLINGTON, Va. – States that let grocery stores sell wine can boost their sales tax revenues and make consumers happy without causing significant harm to liquor stores, according to a new study from FMI, the Food Industry Association.
The report looked at what happened when Tennessee in 2016 began allowing wine sales in grocery stores. Dr. Vincenzina Caputo of Michigan State University conducted the research, titled “Assessing the Impact of Wine Sale Reform: A Case Study of Tennessee.”
Through the creation of a “synthetic” Tennessee, the report examined what would have happened in the state if wine sales were not permitted and compares those results with real-world outcomes since 2016. The report also compares present-day Tennessee with other states that do not allow wine sales in grocery stores. The research found that liquor stores did not see a statistically significant increase in closures, and that state sales tax revenues rose due to the growth in demand for and purchase of wine at grocery stores.
“Consumers value the convenience of being able to purchase a bottle of wine to have with dinner at the same location where they shop for their groceries,” said Elizabeth Tansing, FMI vice president of state government relations. “Through this research, we have shown that allowing wine sales in grocery stores does not lead to liquor store closures as some would suggest, and in fact has positive benefits for the state in increased tax revenues while at the same time giving consumers greater options for making their wine purchases.
“There are still 11 states that don’t allow wine to be sold at grocery stores. This research demonstrates that state governments can be confident that allowing wine sales in grocery will not harm the liquor store sector, will bring additional revenues to state coffers, and will provide shoppers with greater choice.”
