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One state resolves wine direct-shipping issue — could Ohio be next?
One prominent Midwestern state has found a way to resolve its wine direct-shipping issues, and the resolution appears as if it will please wine consumers who are on the receiving end of some of those direct-from-the-winery shipments, according to this Wines & Vines story entitled “Illinois Opens to Direct Shipping.”
The new Illinois law also allows small wine producers to bypass wine wholesalers and distribute their wines directly to retailers — something that to my understanding, would NOT be legal in Ohio under current laws (correct me if I’m wrong). What impact would it have in Ohio if we were to embrace such a law?
Illinois lawmakers didn’t embrace free-market openness entirely: The Illinois law also appears to prohibit out-of-state wine retailers from shipping directly to Illinois consumers through the Internet.
The Ohio General Assembly is contemplating changes in the Buckeye state’s wine laws. Anybody know the latest on these efforts? And what do you think of the Illinois law?
Mark Fisher
Permalink | Comments (6) | Post your comment | Categories: wine shipping
Comments
By Tom Wark
May 10, 2008 1:02 PM | Link to this
The new Illinois law is unconstitutional. While in-state wine retailers may ship to Illinoisans, out of state retailers may not. A Texas Federal judge already ruled this violates the Granholm v. Heals Supreme Court decision of 2005. What’s really sad is that Illinoisans have been able to purchase wine from out of state retailers for 15 years. They had that right stripped to satisfying parochial retailers and Illinois enormously powerful wholesalers. in the past six years Illinois alcohol wholesalers have delivered over $6 million in campaign donations to Illinois politicians. Nothing will change unless the state is sued or if consumers get outraged and speak up. Tom Wark Specialty Wine Retailers AssociationBy Lenny Pepperidge
May 10, 2008 10:20 AM | Link to this
To truly and fundamentally address the wine shipping mess requires ending the archaic and monopolistic 3-tier system. Only when producers and importers are allowed to completely bypass state wholesalers and sell directly to retailers and restaurants will the consumer stop being cheated. Wine wholesalers take some of the highest profit margins of any wholesale/distribution segment. Why is this? Simple; they’re legally insulated from the market—i.e. producers simply bypassing them and going to the retail/restaurant buyers directly. It’s a patently unfair system with no basis in either law or business logistics.By Tony
May 9, 2008 5:48 PM | Link to this
Thanks tannic. In any case it is still protectionism, which is under control of the wine and alcohol industry and therefor pro business and anti-consumer. As I re-read the article, it is interesting to see that the Ill. wine makers were the ones who were pushing the bill. As I just said, there was no mention of any consumer involvement or interest. Just the contrary. As usual the word “C-O-N-S-U-M-E-R” or it’s interest disappears when the wine industry and our representatives discuss new laws. Re Restaurants, I was asking if the laws apply to them buying wine, not retail selling, so that they could offer some interesting wines that you cannot find in a retail store.By Craig
May 9, 2008 5:39 PM | Link to this
Actually, Ohio now has fairly straight forward (and reasonable)shipping laws for wineires anyway. Check out the Wine Institute website for the details. Tony is partly right that it is to protect Illinois wineries. The new federal laws basically say “treat ‘em all the same”. If they forbid out of state wineries to ship to Illinois consumers, then Illinois wineries lose the abiltity to ship to customers in their own state. Interestingly, the laws apply only to wineries and not to retailers. Double standard, hmmmmmm?By tannic
May 9, 2008 4:57 PM | Link to this
Tony, no, it’s not protecting Ill. wineries from out of state wineries. It’s protecting Ill. retailers from out of state retailers (e.g. K & L, Zachy’s, et al, who have great selections and access to limited production wines). I’m not for or against, just pointing that out. Also, restaurants’ licenses are designed for on-premise consumption, so shipping is pretty much ruled out. You can, in many cases, remove wine that you can’t finish, but conducting retail transactions and shipping is a “whole nuther” story.By Tony
May 9, 2008 8:43 AM | Link to this
If I read the article correctly, it is protectionism disguised under another name: it is to protect the small Illinois wineries! As I have asked repeatedly: why protectionism at all? If this would apply to any other retailing industry e.g. cars, appliances, books, music, clothing, food, you name it, their would be an uproar. What’s so special about wine and alcohol? Question: When articles about wine mention “retailers”, does that include restaurants?