Tennessee legislators are still debating whether or not wine should be sold in grocery stores. What would Trader Joe think of this?
I’ve lived a lot of places, and Tennessee is the first state where I’ve encountered folks debating about whether or not we should have wine in grocery stores. Why are we even discussing this? For me, debating the merits of wine in grocery stores makes about as much sense as a debate about whether or not we should have toilet paper at gas stations. If they want to stock it, who cares?
But if you take a little time to think about it, this is a fairly serious issue. Due to previous legislation that set up the current structure, a number of mom and pop stores now depend on wine sales for their livelihood. Allowing grocery stores to sell wine would create competition that could put the mom and pop liquor stores out of business, some say.
In other words, government’s effort to fix the problem that it created in the first place is going to create more problems. Still, I have my doubts about this argument. Liquor stores will still have a monopoly on liquor sales. And the competition may force liquor stores to lower their prices and do a better job of marketing themselves to customers, which will be a good thing.
Monopolies generally aren’t good for consumers, no matter how much we may sympathize with the monopolist.
More after the jump:
From the Chattanooga Times Free Press:
NASHVILLE — A Senate committee popped the cork on a bill allowing wine sales in grocery stores, giving the years-long effort its first real movement even in the Tennessee General Assembly.
Senate State and Local Government Committee members approved the bill on a 5-4 vote. That came after narrowly batting down an amendment permitting liquor stores to sell other items if a referendum passes allowing grocery stores to sell wine.
The bill still faces substantial hurdles in the Senate Finance Committee, the Senate floor and in the House.
This year, backers added a new provision to the bill. If it were to become law, local voters would decide the issue by referendums only in those communities that previously have approved liquor-by-the-drink and package store sales.
“This is an issue that I know has weighed heavy on you,” said Sen. Bill Ketron, R-Murfreesboro, the bill’s sponsor. “It’s weighed heavy on all of us.”
But Ketron said “this is not about you voting to put wine in grocery stores. This bill today is to give the people in your respective districts” a right to vote on the issue.
Republican Senate Speaker Ron Ramsey has put his considerable political muscle into supporting the bill. Still, Ramsey said he isn’t guaranteeing it will pass on the Senate floor.
Two area lawmakers split on the bill with State and Local Government Committee Chairman Ken Yager, R-Harriman, voting no and Sen. Janice Bowling, R-Tullahoma, voting yes. Bowling has indicated she would follow the wishes of constituents.
Many liquor stores, liquor distributors and the Southern Baptist Convention fiercely oppose changes. But the issue is popular among some suburban Republicans as well as urban dwellers.
In Chattanooga, Tennessee’s law prohibiting wine sales in grocery stores was widely seen by both Tennessee and Georgia legislators as playing a significant role in Costco’s decision to locate a store two miles south into Georgia.
Georgia permits wine sales in grocery stores.
Chuganooga 
Leave a comment