Grocers spend big in bid to sell wine

So far, supermarket chains have pumped $2.8 million into their campaign for more licenses to sell wine, while package stores, liquor wholesalers, and beer distributors have raised $857,000 to defeat the plan at the polls in November.

While the referendum campaign is likely to focus on the benefits and dangers of allowing municipalities to issue wine licenses to food stores, the fund-raising reports the two sides have filed with the state indicate the campaign is largely a battle for market share.

Supermarkets, eager to expand their liquor sales, tapped just 11 contributors for their $2.8 million as of Sept. 1. Stop & Shop Supermarkets led the way, contributing just over $1 million.

Under current state law, a company or person is allowed up to three liquor licenses.

A spokesman for the state Office of Campaign and Political Finance said the $1 million donation by Stop & Shop is the largest single contribution in recent memory to a ballot campaign.

Shaw's Supermarkets, the region's second-largest supermarket chain, contributed nearly $548,000. Other chains donating money included Hannaford Bros., Price Chopper, Big Y Foods, DeMoulas Super Markets, Roche Bros., Trader Joe's, and Whole Foods. Donations also came from the Food Marketing Institute, a trade group, and Bozzuto's, a Connecticut food wholesaler.

Costco Wholesale Club, BJ's Wholesale Club, and Wal-Mart have not contributed, nor have any convenience stores.

Package stores led the opposition to the ballot question, with dozens of them donating $1,000 to $5,000 apiece. The largest contribution, of $200,000, came from the Massachusetts Package Stores Association.

Justine Griffin , a spokeswoman for the group opposing the referendum question, declined to say how much it intends to raise.

``We're doing our best to remain competitive with the grocery stores and convenience stores, who obviously have the deep pockets here," she said.

Beer Distributors of Massachusetts was the second-largest donor to the opposition campaign, contributing $66,667. The group's president could not be reached for comment, but Griffin said the beer companies are participating because they believe supermarkets will eventually seek approval to sell beer and hard liquor.

Christopher Flynn , president of the Massachusetts Food Association, said the ballot question deals only with wine. ``I don't see beer on the horizon anytime in the near future," he said.

The other major contributions to the opposition group came from the Wine & Spirit Wholesalers of Massachusetts ($16,000), the Distilled Spirits Council of the United States ($10,000), and liquor wholesalers United Liquors of Braintree ($12,417) and Horizon Beverage Co. of Avon ($11,417).

The supermarket group has spent $701,000 so far this year, with $282,000 going to Winner & Mandabach, a California campaign consultant, and the balance going to consultants, lawyers, pollsters, and website developers.

The package store group has spent nearly $466,000, with the bulk of the money going to Prime Group of Concord for strategic advice ($45,000); Rasky Baerlein Strategic Communications of Boston for campaign consulting ($212,291), and Marttila Communications Group of Boston for focus group research ($125,000).

Both sides in the referendum campaign are expected to launch an advertising blitz after the Sept. 19 primary. Signs opposing the initiative are popping up in package stores across the state, and supermarkets this week plan to start stuffing their campaign flyers into bags at the checkouts.

Supermarket officials say granting them wine licenses will make wine buying more convenient for consumers and create more competition for the state's roughly 2,500 package stores. The supermarkets issued a study recently, claiming that passage of the ballot question would cut wine prices 5 to 7 percent, and save Massachusetts consumers $26 million to $36 million a year.

Package stores say plenty of competition already exists and that more wine licenses will mean more underage drinking and drunken driving.

Passage of the measure would create a ``wine-at-food-store license" and give each municipality the option to award five of them.

Municipalities with more than 5,000 residents could award another license for each additional 5,000 residents, so a town of 10,000 residents, for example, could issue a total of six licenses to food stores.

Licenses awarded by a municipality would also have to be approved by the state.

Bruce Mohl can be reached at mohl@globe.com.