Wine with dinner on Capitol menu

Minnesota grocers want to sell wine, something grocery stores do in 33 others states including Wisconsin, Iowa and South Dakota. And at checkout counters you'll find a vivid reminder that the issue is back on the menu at the Capitol.

At Kowalski's on Grand Avenue in Saint Paul Friday shoppers walked out with sacks reading "Wine With Dinner" in bold print.

"I think it should go through," customer Janice Harbin told KARE 11.

"It?s ridiculous to have to go two places to get your groceries and wine!"

Harbin's southern accent tipped us off to the fact that she's from one of those states where you can accomplish both at the same stop.

"You could buy beer and wine," Harbin remarked about the way things were "down south."

And here in Minnesota?

"Here? It's uncivilized!"

Travel just a short ways down the road and you'll hear the flip side of the issue from a third generation liquor retailer.

"I mean, it would, it would be bad," said Mike Thomas of Thomas Liquors.

"Especially with Whole Foods right up the street. And you got Kowalski?s down there."

Thomas says the competition from large grocery chains would drive many independent liquor stores out of business, because they derive a good portion of profits from wine sales.

He says his store, which has been in the family since the end of Prohibition, would likely survive because of its huge selection and personal service. However, he predicts it would lead him to lay off workers.

"We?d be protected somewhat, especially having the nice liquor and what not, but it still would hurt."

The beverage industry argues alcohol sales would be much harder to police with so many new players in the wine game.

"When you come into a liquor store we have one purpose," said Jim Farrell of the Minnesota Licensed Beverage Association.

"Our purpose is to make eye contact with you, and determine are you of age, and are you intoxicated? That?s the job of a liquor store."

But grocers pledge to be just as strict, when it comes to keeping wine out of the hands of underaged buyers.

"Your grocers are very, very responsible people," said Jamie Pfuhl of the Minnesota Grocers Association.

"First of all they?re not going to do anything to jeopardize well being of anyone in the community. Secondly we manage other restricted products very, very responsibly."

The nation's leading wine seller is Costco, which already sells wine in Minnesota. However, the wine is sold in a separate section, as a separate business entity with its own outdoor entrance.

Farrell, a former state legislator, sees the new wine with dinner bill as a power move by large grocery chains to shore up sales in a time of great change in the industry.

"They've got to show shareholders some growth, at a time when they're not growing. They've got to show something for Wall Street," offered Farrell.

But Pfuhl said it's more about selling two complimentary products under the same roof.

"We're just talking about wine sales, and it's a portion of wine sales," Pfuhl said Friday.

"It's not closing down liquor stores. It's not taking all wine sales. It's just giving and added convenience to our consumers."

There are currently 870 licensed wine shops in Minnesota, including over 200 municipally owned liquor stores.

The sponsor of the bill in the House, Democrat Phyllis Kahn of Minneapolis said, "We're no longer living in the 1930's. It's time to change our 70-year-old liquor laws so they protect consumers, not higher liquor profits."

Pfuhl pointed to a study by the legislative auditor estimated Minnesota wine drinkers would save $15 million per year if they could buy the fruit of the vine in grocery stores. That savings, in theory, would result from expanded competition driving down prices.

But Mike Thomas insisted liquor stores are constantly conducting sales. And Farrell insisted that the liquor business in the state is highly competitive.

He says that's even evident at his trade group's board meetings.

"I?ve got somebody from MGM who?s taking shots at Haskells, who?s taking shots at Liquor Depot, and I?m like hey guys let?s keep focused at what we?re here about."

Although the law would apply to stores with at least 8,000 square feet of floor space, Farrell argues a judge who could strike down part of the law and open the door to convenience stores selling wine.

"Once you legalize the sale of wine you can sell it and package any way you want," said Farrell.

"Now we?re seeing wine in the can for people on the go and we?re seeing wine in juice box type containers. That's a good fit for a place like SuperAmerica."

Pfuhl rejects the slippery slope line of thinking, saying the law as written is for supermarkets only.

During the 2006 campaign Governor Tim Pawlenty said he still opposes the idea of alcohol in grocery stores. The House majority leader, Democrat Tony Sertich of Chisholm told Capitol reporters Friday he'll oppose the bill because of the impact on small businesses.

By John Croman, KARE 11 News

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