Internet Retailer reports that wineries are waiting on tenderhooks for a decision to be rendered soon by the Second U.S. Court of Appeals in New York, in a case that could determine whether wineries will be able to sell their products in states that restrict online wine sales.
A lower court struck down the laws preventing such shipments last October, saying it was unconstitutional. The state of New York appealed the ruling, saying that the plethora of distributors in existence makes it easy for consumers to get virtually any wine they want, that they should be allowed to give preferential treatment to in-state wineries, and that law should be determined by the state, not the federal government.
Lawyers on the other side, however, say that the number of wine wholesalers has decreased from 11,000 to about 3,000, while the number of wineries has increased. In addition, lawyers say, because retailers are editing their wine selections to feature only the most popular, consumers are unable to have full access to all the various wines out there.
A lower court struck down the laws preventing such shipments last October, saying it was unconstitutional. The state of New York appealed the ruling, saying that the plethora of distributors in existence makes it easy for consumers to get virtually any wine they want, that they should be allowed to give preferential treatment to in-state wineries, and that law should be determined by the state, not the federal government.
Lawyers on the other side, however, say that the number of wine wholesalers has decreased from 11,000 to about 3,000, while the number of wineries has increased. In addition, lawyers say, because retailers are editing their wine selections to feature only the most popular, consumers are unable to have full access to all the various wines out there.
- KC's View:
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We agree that the restrictions on wine shipments ought to be tossed out. And if retailers are concerned that they could lose market share because of such a change, then it is up to them to carry a better selection and be more responsible to consumers.
It's always interesting to watch people who believe in free markets change their stripes when their own businesses are threatened.
