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There's no beverage of moderation, only the practice of moderation.

Understanding Moderation

Part of responsible drinking is understanding that a standard drink of beer, distilled spirits and wine each contains the same amount of alcohol. It's not what you drink, it's how much that counts.

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There's no beverage of moderation, only the practice of moderation.

Committed to Responsibility

For more than 75 years, the spirits industry has adhered to a rigorous set of standards for beverage alcohol advertising and marketing. Click here to learn more about the Code.

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New York Wine in Grocery Stores Would Put a Cork in Liquor Tax Revenue

February 8, 2009 07:00 PM

WASHINGTON, DC – A proposal in the State Budget to permit wine in grocery stores, designed to generate new revenue for the state, would in fact leave New York with much less revenue due to the loss of distilled spirits sales – according to a new economic analysis released by the Distilled Spirits Council of the United States. 

The Council sent the report to the governor and key legislators in both the State House and Senate so they could better understand the implications of the plan.

“Allowing grocery stores to sell wine will simply take foot traffic out of package stores – drastically reducing spirits tax revenues for the state,” said David Ozgo, chief economist for the Distilled Spirits Council and author of the analysis.  “If consumers increasingly substitute wine for spirits, New York will end up actually losing more in tax revenues than it’s expected to gain,” he added, citing the considerably higher tax rate applied to spirits.  

Further, Ozgo noted, each time a package store loses a distilled spirits sale, the state will lose 47% of its tax revenue because of the higher tax rate of spirits.   The report also found that a massive reduction in spirits sales would force approximately 560 package store owners to close their doors. 

“This report plainly shows that the proposal to allow wine in grocery stores doesn’t raise the revenue that was projected,” Ozgo added.  “One has to ask, if it doesn’t raise the revenue and hurts small businesses by taking traffic out of package stores – what’s the point?”

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