It’s been a big week especially in terms of state court cases, so let’s recap and take a look at the week’s events.
WHOLESALERS CHALLENGE DIRECT WINE IN OKLAHOMA. Wholesalers in Oklahoma are challenging a voter-approved law that allows in-state winemakers to sell their products directly to liquor stores and restaurants. The lawsuit asserts that the wine law is unconstitutional according to Granholm because out-of-state wineries must continue using wholesalers to distribute their wines. State officials, however, maintain the validity of the law.
State wine-producers are fighting back, claiming that Oklahoma’s wine industry would greatly suffer if the lawsuit is proved successful. It’s up to U.S. District Judge Stephen Friot to determine whether the current law will be expanded to allow out-of-state winemakers to ship directly to liquor stores and restaurants, or overturn the law completely to require all wineries to use wholesalers.
FWC FILES LAWSUIT IN MASSACHUSETTS. Family Winemakers of California (FWC) filed a suit in the Massachusetts district court to overturn the state’s production cap requirement for direct wine shipments. The lawsuit filed earlier this week seeks to overturn the 30,000-gallon production limit that prevents certain wineries from shipping directly to consumers. FWC says it is highlighting the need for small and medium-sized producers to gain access to the Massachusetts wine market in order to compete and thrive.
Says Paul Kronenberg, FWC president: “The Massachusetts law is blatantly discriminatory. It aims to protect Bay State wineries, but prevents Massachusetts consumers from having unfettered choice."
KENTUCKY APPEALS FOR FACE-TO-FACE SALES. The state of Kentucky is appealing a federal court decision allowing small in-state and out-of-state wineries to ship directly to Kentucky consumers who order via the phone or internet. Last month U.S. District Judge Charles Simpson struck down a face-to-face requirement that called for customers to purchase wine in-person at the winery.
The parent agency for Kentucky’s Office of Alcoholic Beverage Control will offer supporting documents in the coming weeks. If the lawsuit proves successful in the future, it could be another victory for three-tier advocates, much like the recent Virginia court case.
VIRGINIA COURT UPHOLDS THE THREE-TIER. Last week was a cause for celebration for advocates of the three-tier system, and a mixed bag for small wineries. A judge in the Fourth Circuit Court of Appeals used language in Granholm to sustain the three-tier system as opposed to dismantling it. The judge reversed a decision by a lower court which declared that parts of Virginia’s alcohol code were unconstitutional under the Commerce Clause because in-state entities were treated differently from out-of-state entities.
The court sustained the constitutionality of the Virginia law that restricts consumers from bringing more than one gallon of alcoholic beverage into the state for personal consumption, and also authorized state-run ABC wineries to sell only Virginia wine. Both had previously been deemed unconstitutional by a lower court.
This is a victory both for three-tier advocates and control state advocates, as Virginia is a control state, and the appeals court upheld the state’s right to control alcohol imports by consumers. It is also a victory for small wineries.
SOUTHERN MOVES INTO WEST VIRGINIA. WSD has rumors for awhile, but Southern finally made a move in West Virginia. Wayne Chaplin, president and COO, announced the formation of Southern Wine & Spirits of West Virginia earlier this week, making it the 14th Control jurisdiction in which Southern belongs.
WINE AND SPIRITS BRIEFS:
PERNOD SHOWS ABSOLUT INTEREST. At Pernod Ricard’s annual results yesterday, managing director Pierre Pringuet said a reduction in debt now allows the company to look at further acquisitions that could help strengthen Pernod's position in North America.
Asked whether the drinks giant would be interested in Vin & Sprit, the maker of Absolut vodka, if privatised, Pringuet said: "Pernod Ricard will watch very closely what happens in this case."
NO TAINTED LOVE FOR SCREW CAPS. There is some dissention among the new, widespread appreciation for screw caps, praised for their convenience and absence of cork-taint – but unrightfully-so according to some industry insiders. Research conducted for this year’s International Wine Challenge claims that screw caps can leave some wine as tainted as corks sometimes do, giving certain traditionalist groups what they need to feed the fire. Tasters at the Challenge claim cork taint is in decline. Out of the 13,000 wines that were sampled, they claimed a hefty 4% of the wine with corks was tainted, compared with 2% of screw cap bottles.
WHOLESALERS CHALLENGE DIRECT WINE IN OKLAHOMA. Wholesalers in Oklahoma are challenging a voter-approved law that allows in-state winemakers to sell their products directly to liquor stores and restaurants. The lawsuit asserts that the wine law is unconstitutional according to Granholm because out-of-state wineries must continue using wholesalers to distribute their wines. State officials, however, maintain the validity of the law.
State wine-producers are fighting back, claiming that Oklahoma’s wine industry would greatly suffer if the lawsuit is proved successful. It’s up to U.S. District Judge Stephen Friot to determine whether the current law will be expanded to allow out-of-state winemakers to ship directly to liquor stores and restaurants, or overturn the law completely to require all wineries to use wholesalers.
FWC FILES LAWSUIT IN MASSACHUSETTS. Family Winemakers of California (FWC) filed a suit in the Massachusetts district court to overturn the state’s production cap requirement for direct wine shipments. The lawsuit filed earlier this week seeks to overturn the 30,000-gallon production limit that prevents certain wineries from shipping directly to consumers. FWC says it is highlighting the need for small and medium-sized producers to gain access to the Massachusetts wine market in order to compete and thrive.
Says Paul Kronenberg, FWC president: “The Massachusetts law is blatantly discriminatory. It aims to protect Bay State wineries, but prevents Massachusetts consumers from having unfettered choice."
KENTUCKY APPEALS FOR FACE-TO-FACE SALES. The state of Kentucky is appealing a federal court decision allowing small in-state and out-of-state wineries to ship directly to Kentucky consumers who order via the phone or internet. Last month U.S. District Judge Charles Simpson struck down a face-to-face requirement that called for customers to purchase wine in-person at the winery.
The parent agency for Kentucky’s Office of Alcoholic Beverage Control will offer supporting documents in the coming weeks. If the lawsuit proves successful in the future, it could be another victory for three-tier advocates, much like the recent Virginia court case.
VIRGINIA COURT UPHOLDS THE THREE-TIER. Last week was a cause for celebration for advocates of the three-tier system, and a mixed bag for small wineries. A judge in the Fourth Circuit Court of Appeals used language in Granholm to sustain the three-tier system as opposed to dismantling it. The judge reversed a decision by a lower court which declared that parts of Virginia’s alcohol code were unconstitutional under the Commerce Clause because in-state entities were treated differently from out-of-state entities.
The court sustained the constitutionality of the Virginia law that restricts consumers from bringing more than one gallon of alcoholic beverage into the state for personal consumption, and also authorized state-run ABC wineries to sell only Virginia wine. Both had previously been deemed unconstitutional by a lower court.
This is a victory both for three-tier advocates and control state advocates, as Virginia is a control state, and the appeals court upheld the state’s right to control alcohol imports by consumers. It is also a victory for small wineries.
SOUTHERN MOVES INTO WEST VIRGINIA. WSD has rumors for awhile, but Southern finally made a move in West Virginia. Wayne Chaplin, president and COO, announced the formation of Southern Wine & Spirits of West Virginia earlier this week, making it the 14th Control jurisdiction in which Southern belongs.
WINE AND SPIRITS BRIEFS:
PERNOD SHOWS ABSOLUT INTEREST. At Pernod Ricard’s annual results yesterday, managing director Pierre Pringuet said a reduction in debt now allows the company to look at further acquisitions that could help strengthen Pernod's position in North America.
Asked whether the drinks giant would be interested in Vin & Sprit, the maker of Absolut vodka, if privatised, Pringuet said: "Pernod Ricard will watch very closely what happens in this case."
NO TAINTED LOVE FOR SCREW CAPS. There is some dissention among the new, widespread appreciation for screw caps, praised for their convenience and absence of cork-taint – but unrightfully-so according to some industry insiders. Research conducted for this year’s International Wine Challenge claims that screw caps can leave some wine as tainted as corks sometimes do, giving certain traditionalist groups what they need to feed the fire. Tasters at the Challenge claim cork taint is in decline. Out of the 13,000 wines that were sampled, they claimed a hefty 4% of the wine with corks was tainted, compared with 2% of screw cap bottles.
posted at 11:30 AM
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