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NJ considering whether to uncork direct wine shipments

by: Jason Springer

Wed Mar 04, 2009 at 04:00:00 PM EST



New Jersey is one of 15 states that prohibit direct shipments from out-of-state wineries. Proponents of S1810/A2656 want to take our name off that list:
Retailers already are allowed to direct ship, but wines from thousands of small vineyards around the nation are not available through retailers, because either the wineries are low-volume producers or they haven't forged relationships with distributors, the group says.

"This bill is not about going down and getting a $10 bottle of wine from a retailer," said Stephen Reid, senior vice president of the lobbying firm Capital Public Affairs, which is organizing the UncorkNJ effort. "This is about getting that special wine the retailer probably doesn't have."

Lloyd Benedict, chief executive officer and founder of AmericanWinery.com, a Walla Walla, Wash., company that helps vineyards sell direct, said, "New Jersey is the fastest growing wine community in the nation." This bill, he said, would give New Jersey residents "the ability to get unique wines made all over the United States, and wineries would be able get their wines" into New Jersey.

I didn't even know I couldn't get wine directly until I went to place the order for a gift online and they told me I couldn't complete the sale a few months ago. Follow me below the fold to get some of the arguments for and against removing the ban.  Let us know where you stand too.
Jason Springer :: NJ considering whether to uncork direct wine shipments
Groups supporting the removal of the ban have set up a website to keep people updated on the progress.The Courier Post has an editorial in support of the measure today and they take on some of the arguments against getting rid of the ban:
Proponents of keeping the ban in place say allowing shipments of wine could lead to more underage drinking. We find that hard to believe. Are teenagers really going to go to the trouble of using fraudulent identification or getting someone who is 21 to sign for them so they can pay a lot of money for high-end wine that might take a week or more to arrive? That just doesn't seem likely. Most teenagers who drink aren't sipping specialty wines from vineyards in California or elsewhere.

This measure is about giving adult wine lovers the ability to drink regional wines they enjoy that aren't available in liquor stores here. There are literally thousands of different wines produced domestically in the United States by more than 1,000 winemakers. Most liquor stores in South Jersey carry only a small fraction on their shelves.

They also point out that you can't bring wine back on the plane anymore because of security regulations against liquids. Here's more of the arguments for and against:
Currently, wines can be shipped through retailers, although advocates for the legislation say that unless a winery can produce thousands of bottles, it is unlikely their product will be picked up.

The lawmakers said the legislation would boost opportunities for the state's agricultural community, while giving consumers the same buying power as residents in 36 other states.

But the bill is getting push back from retail associations, concerned that cutting them out of the supply chain would impact their bottom lines.

Barbara McConnell, a lobbyist for the New Jersey Licensed Beverage Association, which represents bars and taverns that also sell packaged goods, said the legislation comes at a time when the industry is already experiencing lower sales because of the tough economy.

"We think it's just going to have a further economic impact," she said.

The bill was supposed to be heard in the Senate committee hearings this past Monday, but due to the snow it has been rescheduled for next week.  If you want to get wine directly shipped, this will be one to watch for you.
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I think they should (0.00 / 0)
Deregulation went too far in many places, but alcohol sales could use reform.

I have to think of a witty signature about Frank LoBiondo

The arguments against are nonsense (0.00 / 0)
I checked the statistics on direct shipping in New York State. Wines shipped to NY accounted for only 0.3% of the wine tax collected. And the shippers have to register with NJ & will lose their license if they cheat. NY got nearly $1million last year in alcohol beverage and sales tax from direct ship. And no one is going to buy from out of state what is in their local liquor store: the cost plus tax and shipping would not be competitive. NJ Biz won't be hurt.

[ Parent ]
The Zero Sum Mentality at work (0.00 / 0)
Some of these sales they think will be taken away from them are orders from out of staters that would send gift baskets in from a catalog place but once they can't order wine, they'll order food baskets or something else.  

O if in a NJ office some business associates want to send wine but can't, so they sent cheese and crackers.  Who gained?   Not the local bars and taverns.  

Horray for the cheesemongers perhaps, but it doesn't help the NJ bar industry.

Instead of banning a part of wine business, how about increasing total wine market?  Having developed a taste for non CA domestic wines from mail order companies, you might have increased the number of wine drinkers, who would then do more biz in the stores.  Most people are not boring to get everythign from one source.  They'll do mail order, they'll do retail..

Especially in a bad economy, we've got to think about enlarging the pie.


From Lose to Win-Win (0.00 / 0)
I agree with Bruce. If they would get their own web site up, they might be able to increase their business by shipping to other states, since the reciprocity the pro shipping states all have would be satisfied.

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