I am not involved with the wine industry, other than as a (heavy) consumer, in any way shape or form. In addition, this blog takes no advertising (not that anyone would to advertise on it) and the thoughts are all my own.
These two factors allow me to say unequivocally and without fear of reprisal that
this editorial is
complete and total crap.
Since the new law has gone into effect Virginia wine has virtually disappeared off the shelf of local wine shops. Only the larger wineries, those that can afford to take the forced price cut imposed by wholesalers, can continue to sell to wine shops. To smaller wineries, which constitutes about 90% of those in Virginia, it is not worth the loss in profits. So, they sell through their winery and at the various wine festivals.
This line served to particularly annoy me:
Forced to live with the same set of rules as their out-of-state and foreign competitors, the wineries changed tactics and tried to weaken the rules. Earlier this year they sought legislation that would have allowed the vast majority of wineries worldwide (themselves included) to bypass distributors and sell their products directly to Virginia stores and restaurants. Obviously, this bill would have had devastating consequences for wine distributors and their nearly 3,500 employees.What is wrong with that plan? That is something I fully support. The manufacturer of just about EVERY other product on the market has the ability to walk into a store and try to sell their goods directly to the owner, they can try to get restaurants to serve their food, grocery stores to shelve their products. Winemakers are already limited to those places that are licensed to sell alcohol, now they are unable to sell directly -- why should they be treated differently?
As far as winemakers from outside the state selling directly to merchants, that is just laughable. There are tens of thousands of wine sellers around the country. There is no way that any winery is going to be able to sell to each of them directly, it makes sense to use distributors for selling wine outside of your home area, hell, it makes sense for a lot of the larger wineries to use distributors to sell wine in-state.
The point is Virginia wineries should not be forced to used distributors to sell their wine in restaurants, grocery stores, or other wine sellers. Just like no other product is forced to do so...
One thing that I agree with in this editorial:
The strict requirement that distributors stand between producers and retailers, the so-called three-tier system, for example, goes back to the end of Prohibition. Prohibition was a bad idea, we know that now, and laws stemming from Prohibition were also bad. The law put in place earlier this year needs to be reversed, and winemakers need to be able to sell their products on their own.