Thursday, September 3, 2009

CoolVines in the News: CEO Mark Censits discusses the new wine & spirits tax

Westfield storefrontMark Censits, the president and CEO of Coolvines on Elm Street, said the 25 percent tax hike on wines and spirits that is part of the new state budget, will likely impact the cheaper wines. The tax is $5.50 per gallon for liquor and 87.5 cents per gallon of wine, paid by the distributor. He said the cost will not be immediately felt by consumers on any priced bottle of wine, since he and distributors are likely to raise the price on a gradual basis to reflect the new taxes.

Censits said that, given the way the tax is gauged, while all wines and spirits will see an increase, the lower-priced brands will have a larger percentage impact. With wines in his store being priced mainly between $8 and $40, he does not see much of an impact on his merchandise, except for the cheaper bottles he carries.

Distributors are already feeling the impact of the new wine tax, but are gradually raising the prices they use to stores like Coolvines. He said that it will likely be six months before he is paying distributors the new higher prices reflecting the tax. Censits said it will likely be six months before customers will also see an impact on the cost of wine they buy from him.

Read the full article here.