Rents are high on the Eastern Seaboard, as much as three times higher than elsewhere in the United States. And the stores are small, because the rents are so high. There are few of the multi-thousand square foot superstores common in the rest of the country. Plus, because there are so many small stores, there is increased competition and decreased margins.
And, if that’s not enough, the Eastern Seaboard has some of the most restrictive licensing laws in the country. In New York, no one can own more than one retail license; one county in Maryland doesn’t allow privately-owned liquor stores; and no one can own more than two retail licenses in New Jersey.
“I really don’t see how they can make it work with such small stores and such high rents,” says Jane Kettlewell, the co-owner of Creative Palate Communications, a New York City wine marketing firm. “And in one way, they’ve got more competition and lower margins because of the higher costs of doing business.”
So how do wine retailers on the East Coast make it – let alone thrive? Because, despite all of the obstacles, some of the leading off-premise locations in the country are on the East Coast between Washington, D.C., and Boston, an area that includes New York City and its New Jersey suburbs. It doesn’t include Philadelphia, since the state of Pennsylvania owns the liquor retailers in the sixth largest city in the country.
“Yes, there are difficulties, but the most successful retailers have learned to work with those challenges,” says Tom Wark, the executive director of the National Association of Wine Retailers. “So, in one way, the difficulties of East Coast retailing aren’t much different than other regions. Some states have less restrictive rules and more protective rules than other states. But as a region, the East Coast isn’t necessarily unique in its difficulties and challenges than other regions.”
Hence, the top US East Coast wine retailers. The emphasis for many retailers in this part of the country is imported wine, especially European wine, due to the long-standing relationship it has had with Europe, dating to before Prohibition and California’s rise as a wine region. Second, it has a huge proportion of European immigrants, and their legacy still matters for wine.
The following list was compiled after talking to a couple of dozen people familiar with off-premise liquor stores along the East Coast – writers, marketers, public relations professionals, distributors, and retailers. Most asked not to be named, given the nature of the article. I collated their suggestions and ran that list past a half dozen people who were familiar with East Coast wine retailing and how it worked. I refined the list again using their suggestions – but the final list is mine.
Massachusetts
Massachusetts limits the number of retail liquor licenses by city; it’s called a quota and based on population. It doesn’t apply to Boston, which has its own limit. The result is that new retail licenses aren’t often available, so licenses are sold on the private market and can cost hundreds of thousands of dollars.
Urban Grape, Boston: This South End fixture shelves wine by what it calls progressive shelving – organizing wines by their body instead of varietal or region. That means the heavier wines reds are displayed with heavier reds, lighter whites with lighter whites, and so forth. It also emphasizes farm to bottle, natural, and biodynamic producers. Owners TJ and Hadley Douglas handle most of the buying.
Nejaime’s Wine Cellars, Stockbridge and Lenox: This western Massachusetts institution, owned by Joseph Nejaime, has been selling wine in two locations for almost 50 years. It includes a gourmet food and cheese shop, as well as 2,000 wine SKUs.
New York
There are no chains in New York state – one retail license per company. Even supermarkets only get one license. One of the consequences is that the state’s wine shops are neighborhood-oriented, diverse and competitive, especially in New York City. Natural wine got its start in the US here, and there remain dozens of small, eclectic retailers.
Sherry Lehmann, New York City: This Park Avenue store, say those surveyed, ranks as one of the best in the world and has been a Manhattan landmark almost since it opened in 1934. Legend has it founder Jack Aaron was a respected bootlegger during Prohibition.
Astor Wine & Spirits, New York City: Astor has been a fixture in NoHo since 1946, and its current location is in the historic De Vinne Press Building. One specialty: A mixed case, which changes every month, for less than $150.
Chambers Street Wines, New York City: This lower Manhattan store, founded in 2001, specializes in smaller producers from France, Piedmont, Austria, and Germany. Business partners David Lillie and Jamie Wolff, as well as Ariana Rolich (Spain) oversee buying.
Acker Merrall & Condit, New York City: This Upper West Side retailer was founded in 1820, outlasted Prohibition, and branched out to wine auctions in the US and Asia. Its selection of fine and rare wines is among the best in the country, say several of those surveyed. A 2005 Angelus, anyone?
Premier Wine, Liquor & Spirits, Buffalo: These three stores (independently owned and operated to comply with state law) are part of the Premier Group, which includes a gourmet retailer. The original Premier opened in 1943, and the company says its flagship store is one of the largest in the country.
Maryland
Most supermarkets in Maryland can’t sell wine, and only county-owned stores sell wine in Montgomery County, near the Washington, D.C. border. In addition, each county regulates alcohol sales individually, setting up a system with rules that are often different throughout the state.
Bin 604 Wine + Spirits, Baltimore, and Bin 201, Annapolis: These two boutique stores are part of a Maryland restaurant group and treat their inventory much like a restaurant wine list, changing it regularly. In addition, each has a wall of $12 or less wines.
New Jersey
Retail licenses are limited by population, as in Massachusetts, and most licenses for new retailers are bought from existing licensees and not issued by the state – again, costing as much as hundreds of thousands of dollars. In addition, corporations and individuals are limited to two retail licenses, setting up a situation where only two stores in a chain can sell wine. Individuals get around the law by having different family members own the licenses. Finally, supermarkets usually can’t sell wine.
Gary’s Wine and Marketplace, northern New Jersey: Gary Fisch’s company, founded in 1987, runs four locations in the New York City metro area with revenues of almost $60m annually, as well as a new, fifth store in the Napa Valley. Its focus is on discounting in that highly competitive New York area market.
Joe Canals, central New Jersey: Joe Canal’s and its five locations have been known for many things in its two-decades history. But the most intriguing? Its locations near the Pennsylvania border, in the words of one person surveyed for this story, “attract Pennsylvania residents who want a better selection than they get in the state stores, even though it’s technically illegal to buy wine outside of the state and bring it back.”
Central Wine Merchants, Flemington: Smaller, third-generation family-owned retailer that specializes in wines not always available at the big box stores. Also ships to other states where allowed by law. The wine buyer is Carl Weber.
Washington, DC
Retailers in the District of Columbia can import wines with a special license, so the best wine shops bring in high-end wines from around the world.
MacArthur Beverages: This DC institution, founded in 1957, has long been regarded as one of the best wine shops in the country. It features direct import for private clients, California futures, and a $5m wine inventory. Phil Bernstein is general manager and buys for the Rhône, Loire, Languedoc/Roussillon, Germany, Austria, Spain and South America. The Burgundy buyer is Joe Kluchinsky. Andy Creemer oversees Australian, Champagne and domestic labels. Tim Adams buys Italian and South African wines.
Calvert Woodley: This northwest DC standby was formed in 1982 when Calvert Liquors, founded in 1946, merged with Woodley Wine & Liquors, which started in 1966. It features direct importing, which had been a Woodley staple almost from when it opened, as well Bordeaux futures. Tom McKnew, the wine buyer, has been with the retailer since before the merger.
Schneider’s of Capitol Hill: “I just can’t emphasize enough how fantastic this store is,” says Lou Marmon, a long-time DC wine writer. “It’s not like Calvert Woodley and MacArthur aren’t terrific, but Schneider’s always seems to be a little more terrific.” The fourth-generation family business, founded in 1949, buys private cellars, does direct import, and even offers private bottling. The wine manager is Terry Brown.
Virginia
Virginia’s retail wine laws are mostly rational; there are state-owned spirits stores, but most retailers can sell wine.
Chain Bridge Cellars, McLean: This suburban store opened more than 30 years ago, and current owners Doug and Meg House have owned it since 2008. Look for everything from quality labels for less than $10 to $400 vintage port.
Connecticut
Connecticut is one of only a handful of states with minimum pricing; that is, the state sets the lowest price and sales and discounts that result in a price less than the minimum are illegal. This has been the basis for lawsuits over the past couple of decades, including one recently decided in favor of the state.
Spiritus Wines, Hartford: The 38-year-old retailer, owned by Gary and Jenny Dunn, has one of the largest selections in the state, and works to feature wines not often seen elsewhere. This includes a recent tasting from New York’s Finger Lakes.
Jeff Siegel
This article first appeared in Issue 2, 2020 of Meininger's Wine Business International and is available online and in print by subscription.
