WHAT’S TO COME OF RETAILER DIRECT SHIPPING?
As WSD has reported in the past, out-of-state retailers are suing Texas to bring down their ban on interstate retail-to-consumer sales. The state says that cutting out distributors would violate a core part of Texas’ orderly market and tax-collecting mechanism, while retailers claim its protectionism that violates Granholm. And while the state appears to be on the side of the second-tier, the Texas wine and spirits wholesalers (Republic and Glazer’s) have filed to intervene in the case AGAINST the wishes of the state assistant AG.
The litigation has entered the discovery phase, with the AG and distributors fighting over who should discover what. This should go on until mid-2007 leading to motions for summary judgment.
Meanwhile in California, the same retailers have cut a deal with the California ABC in the form of an order that preserves the right of out-of-state retailers to ship to consumers until at least December 31, 2007. Meanwhile the retailers are trying to pass a bill to make it legal. In other words, the ABC has agreed not to enforce its own laws until the laws are changed.
Here’s what Tom Wark, president of the Specialty Wine Retailers Association said exclusively to WSD:
“While in fundamental conflict with wholesalers on the issue of Direct Shipping, members of the Specialty Wine Retailers Association recognize the important service wholesalers provide across the country. In fact, most of SWRA’s members procure their wines directly from wholesalers and they would not be able to provide the services they do without the aid of the wholesale tier.
What SWRA members are seeking is a fair and level playing field for wine sales; a playing field that benefits the consumer, retailers and the wholesalers. Not one that is tilted in one direction for the purposes of protectionism.
Retailers have shipped wine into Texas and Wineries have shipped wine to Texans legally. Yet, the wholesale tier is as strong as ever there. Retailers would like the opportunity to fill consumer demand, pay Texas taxes and do so just like Texas’ own retailers are doing now.
A serious miscalculation is made when anyone suggests retailers want to bring down the 3-tier system or that wholesalers will be hurt by allowing retailer-to-consumer transactions.
A mistake many make however is in thinking that those arguing for a fair and level playing field when it comes to wine shipments have it out for the 3 tier system.
In the case of the Specialty Wine Retailers Association all they are asking for is non-discrimination and a level playing field. For example, in Texas retailers can ship to Texans but out-of-state retailers can't. That's not fair and it's likely unconstitutional.”
The litigation has entered the discovery phase, with the AG and distributors fighting over who should discover what. This should go on until mid-2007 leading to motions for summary judgment.
Meanwhile in California, the same retailers have cut a deal with the California ABC in the form of an order that preserves the right of out-of-state retailers to ship to consumers until at least December 31, 2007. Meanwhile the retailers are trying to pass a bill to make it legal. In other words, the ABC has agreed not to enforce its own laws until the laws are changed.
Here’s what Tom Wark, president of the Specialty Wine Retailers Association said exclusively to WSD:
“While in fundamental conflict with wholesalers on the issue of Direct Shipping, members of the Specialty Wine Retailers Association recognize the important service wholesalers provide across the country. In fact, most of SWRA’s members procure their wines directly from wholesalers and they would not be able to provide the services they do without the aid of the wholesale tier.
What SWRA members are seeking is a fair and level playing field for wine sales; a playing field that benefits the consumer, retailers and the wholesalers. Not one that is tilted in one direction for the purposes of protectionism.
Retailers have shipped wine into Texas and Wineries have shipped wine to Texans legally. Yet, the wholesale tier is as strong as ever there. Retailers would like the opportunity to fill consumer demand, pay Texas taxes and do so just like Texas’ own retailers are doing now.
A serious miscalculation is made when anyone suggests retailers want to bring down the 3-tier system or that wholesalers will be hurt by allowing retailer-to-consumer transactions.
A mistake many make however is in thinking that those arguing for a fair and level playing field when it comes to wine shipments have it out for the 3 tier system.
In the case of the Specialty Wine Retailers Association all they are asking for is non-discrimination and a level playing field. For example, in Texas retailers can ship to Texans but out-of-state retailers can't. That's not fair and it's likely unconstitutional.”
posted at 1:01 PM
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