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Despite all the fuss over shipping wine directly to wine lovers’ homes, there has been one major player left out of the conversation – until now.
The landmark Supreme Court case in 2005 that threw the already confused system into absolute chaos dealt only with wineries shipping their product to consumers, and did not address another, maybe equally important player in the game: wine stores.
But recent court cases in Texas and Michigan may change that.
The Michigan decision, handed down in a federal court Sept. 30, hinged on the same issues and arguments in the original winery shipping case – Michigan law made it legal for in-state wine retailers to ship to Michigan residents, but illegal for out-of-state retailers. Just as in the winery case, the court said the Constitution’s Commerce Clause forbids states from treating out-of-state entities differently than in-state ones.
What does it mean for wine lovers in other states?
Right now, it means nothing – especially since a week after the ruling the court issued a stay while the matter is appealed. And since the decision was in a district court, it applies only within that district.
But it is a crack in the door.
Eventually, it is possible the decision will work its way through the courts and eventually become the law of the land, the way the original decision on wineries did.
That doesn’t mean it will be simple – or quick.
The 2005 decision on wineries, for example, is still being worked out in the courts, as the 50 states have come up with 50 different ways to deal with it, mainly thanks to the wholesalers lobby who have done everything they can to prevent losing 1 percent of their legalized monopoly. Indiana, in one of the most convoluted reactions to the decision, requires you to go to the winery in person at least once before the winery can ship you wine. Kansas requires an in-person visit for each and every purchase.
And the slow pace – plus a chance of bad outcomes – in the courts is not the only thing standing between wine lovers and wine in their mailbox: There are also 50 state legislatures that often seem to be working on the side of the liquor wholesalers instead of the citizens. We’re sure it’s just a coincidence that those same liquor wholesalers give millions of dollars a year to help keep their friends in office.
How bad is it? After the 2005 Supreme Court decision, many state legislatures responded by banning shipping altogether. Some of the proposed laws – like Indiana’s – appeared to be written by the liquor lobby itself. The General Assembly, which claims to be pro-small business, pro-family business, pro-farm and pro-free market, took a bill to regulate both in-state and out-of-state shipping, gutted it, and replaced it with language that would have essentially shut down Indiana’s wine industry. If the court decisions continue on letting wine stores ship directly to consumers, you will see similar efforts all over again.
Why do you need to be able to buy wine from any store in the country and have it shipped to you?
Because wines are unique in their vintage – this is what fuels wine collectors. Here’s an example: A few years ago, Krista bought Dan a bottle of Port from the year he was born, 1970. While a few stores in the area sell fine vintage Port, they carry only what their wholesaler ships them, and wholesalers carry only the current vintage. If you want an old Port, you’ll need to find a store that specializes in old, vintage Port. Under the law of most states, if that store is across a state line, you’re out of luck. In many states, including Indiana, even in-state stores can’t use a third-party shipper.
What all this means is that the market remains tied up by government regulations, which means less competition, higher prices and fewer choices for consumers.
Wines with food
Wondering what wine goes with which food? Send us your favorite holiday story involving wine and you will be entered for a chance to win a copy of "Wine Mondays: Simple Wine Pairings with Seasonal Menus," by award-wining restaurant-owner Frank McClelland and Christie Matheson. Send your entry – 500 words or less, please – to uncorked@jg.net or Uncorked, c/o The Journal Gazette, 600 W. Main St., Fort Wayne, IN 46802. We’ll print several of them in an upcoming column and give the book to our favorite.
Cheers!
