Wine shipment directly from wineries to consumers has won approval from the United States Supreme Court. The Court deemed laws banning such shipments discriminatory and unconstitutional.
The Supreme Court’s decision is final and puts an end to an eight year legal battle between wine consumers, who want to purchase wines directly from wineries, and wine wholesalers.
“In this David versus Goliath battle, the ruling is a triumph for America’s family wine farmers,” said W. Reed Foster, president of the Coalition for Free Trade and chairman emeritus of Ravenswood Winery.
The Coalition for Free Trade is a non-profit organization seeking judicial relief from laws prohibiting direct-to-consumer shipments of wine, and helped coordinate lawsuits in seven states. The Michigan and New York cases were combined and considered by the Supreme Court on December 7, 2004.
According to the Coalition for Free Trade, the ruling will help wineries satisfy growing consumer demand for their wines, rather than being shackled by discriminatory state laws that shut them out of important wine markets.
“It is an historic day for the U.S. wine industry,” said Paul Kronenberg, president of Family Winemakers of California. “The only way that most small wineries can survive economically is to open up new markets and that means shipping directly to consumers.”
An issued press release says that the next step is for legislators in the affected states to pass the existing model direct shipping bill, which was recommended for adoption by the National Conference of State Legislatures’ Task Force on the Wine Industry in 1997.
The model bill has been working successfully in states from Nevada to Virginia; its provisions require an out-of-state winery to purchase a direct shipping license from the state, pay both excise and sales taxes, limit shipments, mark boxes, and consent to the jurisdiction of the state issuing the license.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
