Tuesday, July 31, 2007

SWRA: MOST RETAILERS CHOOSE NOT TO SHIP DIRECT

The Specialty Wine Retailers Association (SWRA) says that regulators and legislators should not be concerned about an influx of wine retailers obtaining direct shipping licenses because, as it turns out, most of them choose not to ship at all. According to a SWRA survey of state regulatory bodies that issue both retailer and winery licenses for direct wine shipments, wine retailers represent only a small portion of license holders.

The survey of permits issued in New Hampshire, Nevada, North Dakota, Nebraska, Oregon and Wyoming found retailers hold only 15-20% of the permits issued.

Director Tom Wark says that state legislators often ban retailers from shipping directly to consumers because they assume the large number of retailers will overwhelm the system as compared to a smaller amount of wineries. However, the survey shows this is not the case, says Tom.

“States worried about regulating out-of-state wine shippers should not be focused on retailers since they represent the minority. The facts show that the vast majority of wine retailers are concerned with their brick and mortar store, not the Internet,” said Tom.

It’s an interesting food for thought, but it remains to be seen if this argument will help the SWRA in its various court cases throughout the country.