It will help NY wineries reach consumers in cities and towns because there aren't enough shelves in liquor stores to offer 1/10 of the wines produced in NY. It will open up competition and that improves quality of a product.
No liquor store will close because wine can also be sold in food stores. It will help liquor stores by letting supermarkets sell the cheap imports freeing up shelf space so liquor stores can offer new wines from all over the world as well as sell other (high mark-up) products such as artisan cheeses from NYS and THAT will help our dairy industry. And liquor stores will still be the sole purveyor of brandies and spirits.
The mark-up of wine will help small, mom-and-pop grocers stay competitive with the large food stores.