1. Corruption and/or unfair competition. When a limited number of corporate buyers control the wine market, that means an opportunity for wine suppliers to influence the selection for thousands of locations. Corporate grocery buyers at regional and national chains are not immune to the “incentives” provided by greedy suppliers with expense accounts. How does it work? Simple—in exchange for a placement on the shelf and guaranteed promotions, buyers receive free trips, dinners, product and cash. The recent Oregon corruption case neatly demonstrates what happens when a monopoly uses their influence improperly.
2. Multiple components of the industry will suffer, including independent businesses. When wine shops have to close, their business partners will diminish including importers, distributors, wineries, delivery truck drivers, logistics providers, warehouse companies.
3. Prices on wine will go up too—as competition decreases in the market and grocery chains consolidate power, there will be a steady but assured price increase in order to boost their profits.
4. Liquor prices would rise dramatically for the consumer. When independent stores lose nearly 75% of their revenue base, they will be forced to try to make up their losses with increased prices on liquor. In a time of extreme inflation and economic uncertainty, the last thing consumers want is for their bottle of Tito’s or Maker’s Mark to go up 15%.
5. Wine and Liquor “deserts” will pop up. As independent retailers go out of business, New Yorkers will lose access to wine and spirits. Over time, independent retailers will close, resulting in less access and outlets for wine and spirits across our communities. This will negatively impact jobs, family businesses, distributors, spirits companies, and consumer access.