January 19, 2016 Luke Bernard, Brand Ambassador from Page Springs Cellars
While the Wine Fight is shaping up to be one of the most importaint bills affecting small businesses in Arizona, it is also one that many people still don’t know about. “While promoting enhanced access, it would in hand increase higher margins for wineries of all sizes. This bill would also remove certain caps that simply hold back the developmental growth of wineries such as PSC” – Luke Benard, Page Springs Cellars.
Read more from one of our own wineries about this importaint cause here.
Despite widespread support for expanding consumer choice in wine, many consumers are still prohibited by state law from purchasing the wines they want directly from wineries and retailers.
Thirty years ago, only four states allowed for legal, regulated winery-to-consumer wine shipments. Now, 41 states allow such shipments from out of state wineries, although just 12 allow retailers to do the same. The U.S. Supreme Court, Federal Trade Commission, state alcohol regulators, and state legislators have joined consumers to help update archaic laws. Many of these laws were merely designed to entrench state-sanctioned monopolies in wine distribution.
Interstate wine shipments using a common carrier, from a winery to an adult consumer 21 years or older, are now allowed in 41 states, which cumulatively represent 90% of wine consumption. Such shipments are still prohibited in the following 9 states as of September: AL, DE, KY (felony), MA (to open 1/1/15), MS, OK, PA (special interstate by 3-tier only), SD, and UT (felony for winery to direct ship).
What’s driving this consumer rights issue?
Each vintage, more wines are produced than can be stocked or sold by wholesalers or retailers. The number of U.S. wineries has increased by over 500% to more than 7,000 in the past 30 years – there is at least one winery in every state. But U.S. wineries produce thousands of new wines each vintage, and nearly all wineries are small, family-owned and operated producers. The top 50 largest wineries produce more than 90% of America’s wine. But less than 17% of U.S. wineries have national distribution (source: Wine Institute member survey, 2003).
Consumer demand for these wines is thriving. Consumers expect to be able to purchase the wines they want, in the manner of their choosing: from retailers, at the winery, and remotely by telephone, fax, and online. The U.S. Supreme Court, Federal Trade Commission, and many state legislators support them, and support expanding consumer choice in wine, especially using the “model direct shipping bill,” a proven piece of legislation used by the majority of states.
But wholesaler middlemen seek to protect their state-sanctioned monopolies. The number of wholesalers decreased by over 75% during the same 30-year period. Now, two or three wholesalers alone determine what wines are available in most states. The 10 largest wholesalers control more than 60% of the U.S. market (source: IMPACT newsletter).
Solution The Model Direct Shipping Bill satisfies consumer demand for choice in wines and how they are delivered, satisfies regulatory requirements and creates a new source for state tax revenues. The solution was cited by the U.S. Supreme Court in its May 2005 ruling (Granholm v. Heald), by the Federal Trade Commission on numerous occasions, and is working successfully in the legal states.
Proponents Millions of wine enthusiasts, regulators and tax collector officials in states that have passed favorable legislation as well as America’s mostly family-owned winery farms located in all 50 states, support limited, regulated direct-to-consumer shipments.
What are consumer supporters doing to support the cause? Citizens and winery plaintiffs have worked together to sue in numerous states and took the case successfully to the U.S. Supreme Court. On May 16, 2005, the High Court ruled that it is unconstitutional for states to allow their wineries to ship to their consumers, and deny that same privilege to out-of-state wineries.
Opponents Wine wholesalers (aka distributors) and their national trade association, the Wine & Spirit Wholesalers of America..
What you can do Check out our Take Action page here where you can find the links and letter to send to your local Legilators. Also make sure to check out our friends at freethegrapes.org for more information and to stay current.
Still want more, read this article published by the Arizona Republic!
Last month we introduced you to our special guest blogger U.S. Bennett and Part 1 of his 4 part series on Crony Capitalism and its impacts as a bipartisan issue. Check out part 2 of this series now.
“The history of Abrams Airborne Manufacturing, Inc. is more than an explanation about past events; it is a true demonstration of the “American Dream” that after decades is still engrained into the core of the business.”
When you arrive at Abram Airborne Manufacturing you see an unassuming building in Tucson, Arizona. Most residents drive by it without ever knowing the amazing story of a family run business changing the world. We were honored to join the NRA’s Women’s Leadership Forum on an exclusive tour inside this 49 year old example of the importance of small businesses to Arizona and America as a whole.
Calley Carpenter of AAM (Left) with Judi White of the NRA’s Women’s Leadership Forum (Right)
You might be suprised to learn that this Arizona business is leading the way in several diverse frontiers such as aerospace & defense, weapons systems, commercial & medical, and military technologies. However despite their cutting-edge developments they still face the same struggles as any small business. Legislative restrictions as well as crony capitalism makes doing business harder and harder. It serves as an important reminder that all small businesses in our State, from the fledgling start-up to the seasoned veterans, need our continued support. It is up to us as Arizona citizens to ensure that our State be a prosperous place that encourages the entrepreneurial spirit and the American dream.
To learn more about Abrams Airborne Manufacturing visit their website at www.abrams.com
For more information about the NRA’s Woman’s Leadership Forum go to NRAWLF.com
This month we are honored to introduce to you our special guest blogger, U.S. Bennett, MPA. He has written a four part series on crony capitalism and its impacts as a bipartisan issue.
U.S. Bennett is a current IT Professional working in Higher Education. He has a BA in Humanities from Northern Arizona University and Masters of Public Administration with an emphasis on Public Finance from the University of Arizona. It was during this time that he evolved his passion for behavioral economics and decision theory. In addition to being an accomplished writer in philosophy he has also written academic works on big-data and fictional short stories. He lives in Tucson, Arizona with his wife of 10 years and their son. In his free time he enjoys reading, writing, playing music, building guitars, watching college basketball, and spending time with his family.
Read Part 1 of his 4 part series here and make sure to check back next month for Part 2 and follow him on Twitter at @GekokujoRhythm
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