Discrimination in Wine Shipping is “Efficient”?

October 25, 2007 – 7:33 am

ncbwwa.jpgLet’s try to dispel a myth. This myth is about efficiency.

Thanks to the new website created by the North Carolina Beer & Wine Wholesalers Association, the myth in question is spelled out nicely:

“The three tier distribution system also makes the most economic sense. It provides the best method for smaller breweries and wineries to get their products into a diverse marketplace and provides small retailers and consumers the best variety of choice and value. This system provides a level playing field for all brewers, wineries and retailers.

The three tier system, when it discriminates against out-of-state retailers as the the North Carolina and most other states’ 3 tier system regulations does, makes little economic sense, results in terribly restricted choice and value and is the opposite of a level playing field .

The North Carolina Beer and Wine Wholesalers Association donated more than $85,000 to North Carolina politicians in 2006 alone. As an industry, NC wholesalers donated more than 140K to NC politicians in 2006. Since 2000 that industry has donated over $600,000 to NC politicians.

I mention this only to suggest that if the North Carolina three tier system is so amazingly wonderful for all concerned, why are the wholesalers spending like drunken sailors on politicians? Why do they feel it necessary to give away so much cash? Why do they feel the need to protect a system with cash that is so perfect the way it is?

The fact is, by working so hard to restrict North Carolinians access to fine wine through restrictive, unfair, unconstitutional and anti-consumer laws that prohibit them from obtaining wines the wholesalers simply can’t offer to the market, they demonstrate the inherent inefficiencies of the three tier system as it is currently constructed in that state.

Literally thousands of wines are unavailable to North Carolinian retailers and consumers because of the system the NC wholesalers defend as making “the most economic sense”.

If you are interested in seeing the BIG LIE, built on big distributor money, then head to the NCWBW site and look at who they describe the system that is built to protect them, not consumers.

Better yet, if you live in North Carolina and believe that you should have the right to buy wine from out-of-state retailers just like you can buy wine from out-of-state wineries, then Find Your State Representative and tell them this

  1. 2 Responses to “Discrimination in Wine Shipping is “Efficient”?”

  2. Great article.

    Lipman brothers has an almost identical page in Tennessee. You can read my economist’s take on it here:

    http://www.dis-equilibrium.com/2007/02/competition-policy-after-several.html

    By Mike on Oct 26, 2007

  3. very interesting, but I don’t agree with you
    Idetrorce

    By Idetrorce on Dec 15, 2007

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