Archive for the ‘Three Tier System’ Category

Aug 19, 2021

Dear Wine Industry…Signed, Anonymous

What would you tell the federal government about competition in the alcohol industry if you could keep your comments anonymous? This is the question that struck me as I began to look over the nearly 190 comments that have been provided to the TTB in response to the Biden Administration’s announcement it was looking into the subject of “Promoting Competition in the Beer, Wine and Spirits Market.” It began taking public comments in late July. The deadline for sending comments…

Aug 13, 2021

The Magical Powers of the Three Tier System

The Center for Alcohol Policy, a front-group funded by beer wholesalers, recently issued a white paper on the important issue of Drunk Driving in America. The White Paper, entitled “A Legislative History of Drunk Driving in America”, examines a number of steps that have been taken over the years to reduce drunk driving. Measures such as the 0.08 blood alcohol level, the 21-year-old minimum drinking age, and open container laws are all examined. But what caught my eye was this:…

Aug 3, 2021

The Real Threat of Counterfeit Wine From Wholesalers

Over the past five years or so some members of the alcohol beverage industry have voiced concern that counterfeit alcohol is such a potential problem that increased vigilance is necessary to keep unlicensed and counterfeit products from entering the supply chain and eventually making their way to the consumer. While America’s wine, beer, and spirit wholesalers have been most vocal in warning of this potential problem, what has gone unsaid is that it is the wholesaler that is most likely…

Aug 2, 2021

How Grammar Will Have a Multi-Billion Dollar Impact on Wine Sales

Over the past two months, I’ve seen at least four examples of people arguing that banning out-of-state wine retailers from shipping into a state advances a state’s goal of protecting the health and safety of its citizens. The bans on retailer wine shipping do this, it is argued, because it helps keep lower-priced wines out of the states’ markets, which, in turn, lowers consumption of alcohol. This argument leads us to a very important question: What is the difference between…

Jul 15, 2021

Winery’s Use of Fulfillment Houses Is Illegal?

Wineries’ use of fulfillment houses to store, pack, label boxes and prepare wines for shipment to consumers is illegal. Who knew?? Try to imagine the logistic of wine shipping if producers were required by destination states to store, pack and arrange shipments of wine to consumers from their own bonded facilities, instead of contracting with fulfillment houses. How much more expensive would this make DTC shipping? How much more space would wineries and bonded facilities require to undertake shipments? Sound…