The former chairman of Pennsylvania's state liquor board plans to launch a new business to offer wine enthusiasts, retailers and wholesalers fine wines at reduced prices -- but he won't be doing business in his home state.

Jonathan Newman, based in Philadelphia, said that Newman Wine and Spirits will be "a completely new idea" for combining the collective buying power of select retailers to purchase high-quality wines when it starts taking orders in January.

The business model is patterned after the Pennsylvania Liquor Control Board Chairman's Selection program, started by Mr. Newman during his tenure as chairman.

The popular Chairman's Selection program uses Pennsylvania's buying power as one of the largest single wine purchasers in North America to leverage low prices for high-quality wines.

With his new business, Mr. Newman plans a similar approach by reaching out to wineries, retailers and wholesalers across the United States.

"Jonathan is so enthusiastic, I'm sure that anything he gets involved in will be successful," said Adam Strum, chairman of New York-based Wine Enthusiast and editor and publisher of Wine Enthusiast magazine.

"Through his years as chairman for the Pennsylvania board, he's built powerful relationships with people throughout the world of wine."

Mr. Newman, while emphasizing that he will only accept top wines, said his company will help wineries move stock to make room for new vintages, buy surplus crop, and help small wineries that don't have a distribution system.

"There is so much wine out there right now," said Mr. Newman, noting that the 2005 crop was 40 percent higher than the previous year.

For retailers, he will offer regional exclusivity. "A lot of retailers are looking for opportunities to present exclusive products to their consumers," said Mr. Strum.

Mr. Newman said he already has been in touch with retailers in more than 25 states as well as "several dozen" wineries, primarily in California.

"I've been overwhelmed by the response," he said.

But Mr. Newman said he will not do business with Pennsylvania's liquor control board, saying it was too soon after his departure.

Mr. Newman resigned from the board in December in protest of Gov. Rendell's nomination of former state Sen. Joe Conti, R-Bucks, to a newly created CEO position with a $150,000 salary. His objection was that the board was given only two days to approve Mr. Conti, without the benefit of a national search.

"I thought the actions that were taken did not show transparency in government, and were not part of good governing. I don't feel comfortable returning to my state agency and soliciting those people. There are 49 other states out there."

In response, current LCB Board Chairman P.J. Stapleton said in a statement Friday that the LCB will continue to use its buying power "to bring great wine and spirits to Pennsylvania at great prices. Mr. Newman is a private citizen now and we wish him well in his new venture."

In theory, Newman Wine and Spirits could end up bidding against the LCB for a particular vintage although Mr. Strum downplayed the possibility. "There are thousands of wineries in the U.S. I think there's plenty of wine to go around."

Mr. Newman said he plans to start up the spirits portion of the business by introducing high-end vodka and tequila next summer.

An investor and board member for Newman Wine and Spirits is retired Pirates CEO Kevin McClatchy, who said the new business "makes a lot of sense."

Mr. McClatchy said he was impressed with Mr. Newman after working with him to develop special All-Star label wines when Pittsburgh hosted the mid-summer baseball classic in 2006.

"I really respected what he had done with the board and with the Chairman's Selection," said Mr. McClatchy.