Wednesday, March 28, 2007

SPECIALTY RETAILERS FIRE BACK AT THE WSWA

Last week WSD covered reports by the Daily Iowan of an out-of-state retailer shipping wine directly to an Iowa college student in violation of that state’s law, which prohibits direct-to-consumers sales by out-of-state retailers. In response to these reports, Craig Wolf of the Wine and Spirits Wholesalers of America (WSWA) issued a statement condemning the act of selling to minors, including the following:

“Online retailers are playing fast and loose with alcohol laws—shipping beer, wine and liquor with no fear of being caught doing something illegal—including selling to kids.”

The Specialty Wine Retailers Association (a trade organization for the rights of retailers to ship directly to consumers) was none too pleased with the WSWA’s “near hysterical” reaction. The association recognized the retailer’s wrong doing, but also pointed out that many direct shipping laws in various states are confusing and in need of a “protocol for safe, effective, consumer delivery. Retailers, not having been faced with any degree of enforcement by state regulators, shipped to states where the laws were unclear.” Here are some of the responses issued by SWRA president, Tom Wark:

“The [media] sting illustrates the need for new permit systems to be put into place around the country for retailer-to-consumer wine shipments. The event also illuminated the double standard wine distributors embrace when it comes to what sort of sales are dangerous.”

"Mr. Wolf’s tantrum, disguised as a press release, begs the question, what interest do wholesalers have in laws regulating retailers?"

"When wholesalers start issuing press releases about brick and mortar wine shops making their first, second or even 500th illegal sale to minors, then we’ll take seriously anything the Wine & Spirit Wholesalers Association has to say. Until then we’ll write off their self-indulgent tantrums and remind politicians and consumers that the state clearly has successful ways to catch and punish wrong-doers and that retailers, just like wineries, should be permitted to ship direct to consumers under a well-regulated permit system."

We hear there’s going to be a shootout at the OK Corral tomorrow at high noon. See you there.