On The Wine.com Controversy

January 16, 2008 – 6:47 am

Many readers of this blog will have already become familiar with the “Wine.com Episode” of recent weeks. How could you not be. Wine.com’s concern with the legality of much shipping of wine into Washington and its subsequent in-house stings of various retailers followed up by their visit to the Washington State Liquor Control Board with stung wine in hand, followed then by letters from the Control Board to the wineries that shipped has been well covered in the media and among commentators at various online wine sites.

The Wine Spectator covered the issue HERE.
Yesterday Decanter covered the issue HERE.
A very long discussion of the issue at Vinography can be found HERE.
The Wine Market Report’s coverage can be found HERE.

One things should be made clear. In various places it has been suggested that Specialty Wine Retailers Association supports what is considered illegal shipping to a variety of states. I don’t believe any representative of SWRA has ever suggested, let alone said, such a thing. SWRA is in business to CHANGE the shipping laws in states where laws discriminate against retailers and their own consumers. SWRA does not exist to promote illegal shipping.

Yet, we are not the Wine Police Force either. While we recommend retailers follow the laws, our charge is not to investigate our members shipping habits. We leave that to the regulators in various states and other private entities.

Yet in the course of the debate, which had been joined by Wine.com’s CEO at Vinography, it was suggested that SWRA create a code of conduct whereby we recommend the proper way to go about doing business as a wine retailer that ships wine to consumers. Although this could never be a required code of conduct since no association in this business that I’ve ever heard of has, or would, create for themselves a police power, the idea of creating a Code of Conduct that we ask members, and even non members, to adhere to is a very good one indeed.

This organization will in fact be looking very closely at such a Code.

It should also be noted that while a great deal of ugly things have been leveled at Wine.com primarily by consumers who have observed the episode, SWRA itself appreciates Wine.com’s contribution to the realm of retailer-to-consumer sales. It is a pioneering organization that has raised awareness of the availability of on-line wine. And though we may take issue with the way it has recently addressed the issue of how laws are applied to wine shippers, we also recognize that it has played a role in getting many people thinking about the issue of retailer to consumer sales of wine. SWRA would in fact welcome Wine.com as a member as we take them on their word when they write:

“The biggest barrier to growth in online wine is the current stalemate on state laws….Wine.com wants two things: First and foremost, open markets. We’d like to see all states open up to interstate shipping of wine. This would be best for consumers, best for the health of the online wine business and best for Wine.com and our customers.”

  1. One Response to “On The Wine.com Controversy”

  2. Thank you for providing a statement on this complex issue. Emotions are running high in the wine community. Consumers are frustrated by not having access to products they want, distributors feel threatened buy a new and still developing business model and then we have Wine.com taking on (essentially bypassing) law enforcement.

    In our experience, we have only found one winery willing to ship to us through an in-state distributor. The number of wine suppliers that we have queried to the number that can legally ship to us would lead me to believe that the number of illegal shipments is by far in the minority. Nevertheless, the fundamental problem is the outdated laws and the support of these laws by big business and state owned monopolies.

    We are still in the stages where using the courts to effect change and lobbying lawmakers is producing results. We should keep this successful action progressing.

    By Taster A on Jan 20, 2008

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