New York votes against wine in grocery stores

The New York State Legislature rejected Gov. Patterson's proposal to allow grocery stores to sell wine. But the governor has says he has not given up on the measure, which assumes that the availability of wine on supermarket shelves will boost sales -- and sales tax revenue -- providing much needed cash to shrink New York's $15 billion deficit.

Grocery store wine sales has been debated for decades in New York. But putting wine on grocery store shelves would slam owners of liquor stores, who claim they'd lose about 70% of their wine sales. Wine bottlers, however are lobbying hard to allow their products to sell at as many stores possible, and New York's nearly 15,000 grocery stores are an attractive target.

NY grocery stores are currently allowed to sell beer, but wine is still a no go. Thirty-five states allow wine to be sold in supermarkets.

The Governor has called the legislature back into session this evening to negotiate the emergency budget.