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Constellation Brands, whose growth as a power player in the alcohol industry recently earned it a spot on Marin Institute’s website as one of the world's top alcohol-producing companies, can now add political influence to its list of accomplishments, thanks to a $25,000 contribution to the re-election campaign of New York State Governor David Paterson.
Why tie this particular contribution – a relatively paltry sum to pay when Constellation had $4.7 billion in annual sales last year – to political influence? It’s all in the timing.
Constellation, which prides itself on its reputation as the world’s largest wine producer (by volume), contributed said 25K just one week before Governor Paterson announced his 2010/2011 budget, which included a proposal to allow wine to be sold in New York’s 19,000 grocery stores. Current law only allows wine to be sold in the 2,700 liquor stores in the state.
Of course, denials of any impropriety were swiftly released. From Richie Fife, spokesperson for Paterson's re-election campaign: "There is absolutely no connection to the Constellation contribution and the governor's support for wine in grocery stores.” From Constellation’s spokesperson Cheryl Gossin: “The contribution is not in any way connected to the wine in grocery stores proposal.”
Right. Blair Horner, legislative director for New York Public Interest Research Group, sums it up best: “Generally speaking, major businesses don't give campaign contributions out of the goodness of their hearts. They believe it will have influence and they don't give unless they think it will work.”
After all, why only sell your wine in 2,700 stores when you can sell it in 19,000 stores?
New York may have a large budget shortfall to contend with again this year, and changing this law could potentially add more revenue in the form of sales tax for the state. But after Constellation gets what its influence will buy, the state will still be on its own to foot the bills on alcohol harm, to fund alcohol treatment programs, and to find revenue anywhere else but in alcohol tax increases.
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