“We have a system set up in this country for distribution (of wine) that is
designed to create accountability and responsibility. Amazon to their
credit tried to abide by the laws that created accountability. When
they found out they were unable to do so in a cost effective way, then
they had to at some point bail out. The larger issue
is if Amazon and its resources couldn’t do it legally, obviously these
other companies aren’t doing it legally and taking advantage of the
lack of state enforcement.”
Craig Wolf, CEO, Wine & Spirits Wholesalers Association
Mr. Wolf should be extraordinarily proud of the success that he, as CEO of the largest wine wholesaler organization in America, and individual wholesalers have achieved in their attempt to limit as much as they can consumer access to wines. Their latest victory is Amazon.com's retreat from selling wine on-line. The inane, archaic, and wholesaler-supported regulations that define the three-tier system are what Amazon.com was up against. America's wine wholesalers support these anti-consumer, anti-competitive regulations precisely to be able to blunt and stop entry into the wine business by companies like Amazon who might be able to demonstrate the nonsensical nature of much of the three-tier system, not to mention the redundancy inherent in having state's mandate the use of wholesalers to get wine to market.
However, that said I think it's important to look closely at the statement above, made by Mr. Wolf in an interview with Wine & Spirits Daily.
“We have a system set up in this country for distribution (of wine) that is
designed to create accountability and responsibility."
Even if this were true, what are the odds that a system designed in the 1930s, when there were hardly any wines being produced in the United States, when Americans rarely drank wine and when it was impossible to ship wine across the country without ruining it, would have any relevance to today's wine market? That's a rhetorical question. What was once a system set up to give states accountability and promote responsibility has turned into a welfare and bailout system for America's wine wholesalers. "Designed to create accountability and responsibility" is really just a euphemism for "a system that guarantees wine wholesalers control of the market at the expense of wineries, retailers and consumers".
"Amazon to their
credit tried to abide by the laws that created accountability. When
they found out they were unable to do so in a cost effective way, then
they had to at some point bail out."
Wholesalers has spent millions and millions of dollars that only they in the middle tier of the three tier system could afford to spend, to influence legislatures to pass and keep in place laws that make it as difficult as possible for companies like Amazon to safely bring wine to the consumer; wines that the wholesalers have no interest in bringing to the consumer. What Mr. Wolf does not say is that there are any number of ways the regulations concerning the distribution of wine could be changed that not only allowed for accountability, but also provided consumers with real choices, created a fair playing field for all parts of the three tier system, promoted competition, and forced wine wholesalers across the country to actually work for the money they make rather than having it handed to them on a government issued plate.
"The larger issue
is if Amazon and its resources couldn’t do it legally, obviously these
other companies aren’t doing it legally and taking advantage of the
lack of state enforcement.”
Mr. Wolf is making statements here about which he knows nothing. He doesn't name the names of those that he says are shipping illegally for a very good reason: he's a lawyer and knows better than to make that kind of reckless accusation. But more importantly, he gets the whole issue wrong. The larger issue is not about illegal shipping. The larger issue is why wholesalers spend millions of dollars to preserve a system that in states across the country produces terrible selections of wine relative to what's really available in the U.S. Market? Why do wine wholesalers ALWAYS oppose proposals that allow consumers to access the vibrant selection of wines in the U.S marketplace, forcing them to choose from the rudimentary selection that wholesalers want consumers to stick with?
The bottom line? Right now, across the country, wine wholesalers are jumping with joy, laughing and giggling uncontrollably because they were able to successfully thwart a program that would have given consumers better access to wine.
Yes, I know its just more bitching and moaning. Fine. If you want to do something about this there are some options.
1. Find out who your STATE legislators are and write them telling them you want to be able to have wine shipped to you from both wineries and retailers.
2. Educate yourself about retailer-to-consumer shipping laws and politics.
3. Educate yourself about winery-to-consumer shipping laws and politics.
4. Become a Facebook Fan of Specialty Wine Retailers Association
5. Write Craig Wolf and express yourself regarding wholesalers' agenda.
