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April 23, 2007
Illinois Consumers Stripped of Their Right to Buy Wine
You’d think Illinois’ alcohol wholesalers would have learned their lesson after the U.S. Supreme Court told them states couldn’t discriminate against out-of-state wine sellers. They didn’t. If HB 429 — a bill written by the alcohol wholesalers and now quickly moving though the legislature — passes, Illinois consumers will no longer be allowed to purchase and have shipped to them wine they’ve been buying from out-of-state specialty wine shops for 15 years.
a statement by the Specialty Wine Retailers Association...
According to “Followthemoney.org,” Illinois alcohol wholesalers gave more than $5.4 million to state politicians since 2000, making them among the leading campaign contributors in Illinois.
House Bill 429 tells consumers they can no longer buy from out-of-state wine shops. Yet the bill, in blatantly unconstitutional fashion, continues to allow in-state stores to ship to Illinois residents. This kind of discrimination was addressed by the U.S. Supreme Court in their 2005 Granhom v. Heald decision and found unconstitutional.
“The odd thing is the alcohol wholesalers and the bill itself gives no reason at all for stripping consumers of a right they’ve held for 15 years,” notes Tom Wark, executive director of the Specialty Wine Retailers Association. “It’s clear to me why the reasons behind this anti-consumer legislation isn’t addressed: It’s simply bald faced greed and a lack of consideration for the consumers.
“By prohibiting out-of-state wine shops from servicing Illinois consumers, alcohol wholesalers take back a significant part of the wine market that they didn’t get to control since 1992. The wholesalers will have completely eliminated any competition from the out-of-state retailers that thousands of Illinois consumers have relied on for years. It also means, if the wholesalers don’t distribute a wine in the state then consumers are prohibited from looking elsewhere for the wine they want.
“The really odd thing is that wholesalers wrote a bill that allows out-of-state wineries to ship to consumers. We applaud them for that. However, it begs the question why eliminate the consumer’s choice to buy from out-of-state retailers and it demonstrates that nothing about this bill is aimed at stopping minors from accessing alcohol on the Internet.”
HB 429 creates a new Illinois-issued permit for out-of-state wine shippers that only wineries can obtain. Since 1992 the state of Illinois has allowed both wineries and retailers to ship to Illinois consumers if the shipping state allowed Illinois wineries and retailers to ship into their state. Illinois residents were able to purchase wines from specialty wine stores across the country. Under HB 429 consumers will no longer be able to buy wine from out-of-state wine stores, just wineries.
About Specialty Wine Retailers Association:
The Specialty Wine Retailers Association (SWRA) exists to create a national marketplace for direct-to-consumer wine sales. SWRA is the only group of retailers seeking a "borderless" wine market so that consumers can purchase and receive wine directly from any retailer in the United States. A national wine market will improve choice, price and convenience, and help consumers make sense of the diversity of American and imported wines.
Association retailer members include wine merchants, wine auction houses, wine e-tailers, catalogers and wine clubs that operate (collectively) in 30 states. Associate members include "wine interested" organizations such as wineries, trade associations and service providers.
Founded in 2005, the Specialty Wine Retailers Association was formed to create a national marketplace for direct-to-consumer wine sales. Wine retailers play a critical role in the national wine market. They provide not only access and choice, but information that helps consumers make sense of the great, and sometimes overwhelming, diversity of American and imported wines. The traditional merchant role is even more relevant in today's dynamic marketplace of thousands of brands. A primary goal of SWRA is to replace archaic, discriminatory laws that hurt consumers. A national wine marketplace will provide consumers with more transparency to what is available and more competitive pricing, which will help all tiers of the wine industry including wholesalers.
Headquartered in Sacramento, California, SWRA is a 501(c)(6) not-for-profit trade association. The Association serves its members in various legislative and regulatory arenas and by litigating to improve the system for all constituencies.
The Specialty Wine Retailers is a national organization of wine retailers who advocate on behalf of their members and consumers to assure and non-discriminatory wine laws. More information on SWRA can be found at www.specialtywineretailers.org.
SACRAMENTO, Calif.–April 23, 2007
Posted by fortna at April 23, 2007 08:42 AM
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