Grapes Of Wrath
Outdated laws put the squeeze on small wineries.
These days, creating a bottle of fine cabernet is the easy part
for many small wineries. The hard part? Finding a way to get their
wines into consumers' glasses.
The problem, say many, is obscure laws dating back to the
Prohibition era that restrict wine and other alcoholic beverages
from entering states except through official channels such as
private distributors or a government authority. In recent years, a
major consolidation of liquor distributors and retail channels has
caused the pipeline to consumers to shrink, squeezing small
wineries and wine retailers out. Seeing no other choice, some have
turned to direct shipping to reach customers.
"Small wineries and retailers see the existing wholesale
distribution network as anti-competitive and anti-consumer,"
says Rich Cartiere, editor of Wine Business Publications in
Sonoma, California.
Content Continues Below
Yet with illegal shipments reaching a record $1 billion last
year, says Cartiere, distributors and major wine retailers in
several states are pressuring authorities to crack down. That's
what happened in a Florida lawsuit filed in U.S. district court
recently. Two of the seven small wine retailers named in the suit
have already settled out of court. But others, like Ronald
Loutherback, owner of three Wine Club premium wine shops throughout
California, aren't ready to give up so easily.
Loutherback has established a fund to fight the suit, calling on
his many business contacts and sending letters to catalog retailers
and small wineries explaining his situation. So far, the response
has been overwhelmingly supportive. Says Loutherback, "Most
are eager and are coming to me with support." -H.P.
Page 1 |
2 |
3 