Under the proposal beer and wine licenses would be sold to retailers including big-box stores, grocery stores, pharmacies and convenience stores.
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"It's going to be interesting what the cost of the new licenses will be," said Sam Krafty, of Mt. Bethel Beverage, as he stocked displays Wednesday afternoon.
Gov. Tom Corbett's proposal to close Pennsylvania liquor stores and replace them with twice as many private outlets, as well as expand beer and wine sales, drew a mix of support and criticism from consumers, grocery chains and convenience stores.
Forks Township resident Michael Johnson said privatizing the liquor and wine business could create job losses for store employees, but it "sounds like a good idea" for shoppers.
"It will make it easier for the consumers," Johnson said Wednesday while exiting the Fine Wine & Good Spirits shop next to the Giant supermarket in Forks Township. "Some times you have to go through hardships to make things easier for the future."
Rosalyn Minotti, also a Forks resident, had a different view on the issue. She doesn't like the idea of "bringing children into a grocery store where there is all kinds of beer and wine."
"I like to keep my shopping separate," she said after leaving Giant.
In unveiling his ambitious proposal Wednesday, Corbett said the plan would generate an additional $1 billion in revenue over several years. He said the money would be used to create a proposed block grant program to help finance public school projects.
Most of the revenue, a projected $575 million, would come from the sale of wholesale liquor licenses.
An additional $224 million is anticipated from the auctioning of 1,200 retail wine and liquor licenses by the state’s 67 counties, with 800 reserved for large stores and 400 for smaller ones. Those licensees would be required to set up separate stores to sell wine and liquor.
Union: 5,000 jobs lost
The state store employees union says the governor's plan would kill jobs and create a slew of unneeded alcohol outlets.
United Food and Commercial Workers PA Wine & Spirits Council representatives denounced Corbett's proposal in a media conference call Wednesday.
Wendell Young, UFCW local 1776 president, said established retailers would not create new jobs but instead obtain licenses and reallocate work force and square footage.
"This governor seems willing to throw 5,000 people out of work," he said of the state store jobs.
Corbett called his proposal revenue neutral, once receipts from the state's liquor and wine markups evaporate. But, Young predicted the loss of that revenue will make it hard for lawmakers to support the governor's proposal.
For example, consumers will be able to buy beer and wine where they shop for groceries, buy six packs of beer at a distributor instead of being forced to buy an entire case and buy a six pack of beer at a convenience store.
Sam Krafty, owner of Mt. Bethel Beverage, said allowing big box stores and convenience stores to sell beer would "pretty much put most of us distributors out of business."
Larger stores would be able to reduce costs and make up the profit on other items, he said.
Distributors selling wine could be a good thing, "but at what price is the license going to be?" Krafty asked. Small business cannot afford expensive licenses, and the last proposal was about $400,000, he said.
"They would essentially be putting us out of business if they didn't compensate us somehow," he said.
Convenience factor seen
Grocery and convenience store chains are optimistic about the proposal, with the possibility of the stores adding beer and wine sales.
Louie Sheetz, executive vice president of the Altoona-based convenience store chain Sheetz, said Corbett's proposal is "a great step in a direction that we have been a proponent of for many years."
Of 234 Sheetz, its Altoona location is the only store permitted to sell beer, but five stores in neighboring states are actively selling beer and wine, he said.
"It's a business model we're really used to," he said.
Wawa spokeswoman Lori Bruce said the chain is in "support the governor’s office reviewing methods to increase flexibility for retailers."
At Wegmans, where beer sales are allowed at 14 Pennsylvania locations that include three in the Lehigh Valley, spokeswoman Jo Natale said the store supports "any effort that would give customers greater convenience and choice."
Giant Food Stores spokesman Chris Brand said the company does not want to speculate but the grocery chain supports any plans that "support convenience for our customer."
"Pennsylvanians have made it abundantly clear that they would appreciate the convenience of buying beer, wine and spirits when they shop for their groceries," he said.Giant sells beer in select stores in Pennsylvania, Brand said. It sells wine and beer in other states, he said.
Weis Markets sells beer at 15 Pennsylvania stores, including in Palmer and Forks townships, said spokesman Dennis Curtin.
"We sell it as a convenience to our customers, and they appreciate having this option, it saves them an extra trip," he said. "It's been a positive for our business."
The Associated Press contributed to this report.