JUDGE THROWS OUT WHOLESALER LAWSUIT IN AR

It may be up to a federal judge to determine the fate of direct wine shipments in Arkansas. Circuit Judge Jay Moody threw out a lawsuit last Friday aimed at preventing wine-producers from shipping directly to consumers, which leaves the issue open for federal perusal. However, most wineries want the state legislature to resolve their dispute with wholesalers in the next legislative session starting January.

Last week the winery group asked Judge Moody to throw out the case, arguing that wholesalers shouldn’t be allowed to sue because the shipping bands do not hurt the distributors or retailers, only out-of-state wineries.

However, legalizing direct wine shipments greatly threatens the 2nd-tier, which aims to promote an orderly and regulatory alcohol beverage market. Arkansas wholesalers are fighting to outlaw direct wine shipments from in-state and out-of-state wineries to consumers, arguing that distributors are integral in collecting taxes and preventing alcohol access by minors. (State law currently requires “face-to-face sales.”)

Wine suppliers challenge those claims, arguing that wholesalers are mainly interested in keeping a hold on the market, which is dominated by out-of-state wines.