Wine Sale Curbs Lifted
WASHINGTON — The Supreme Court opened the way Monday for vintners to sell their wines directly to consumers across the nation, a major victory for California's $15 billion-a-year wine industry.
The 5-4 decision struck down laws in New York and Michigan on the grounds that they discriminated against out-of-state wineries by prohibiting them from selling directly to consumers while letting local vintners do so.
The ruling, especially important for hundreds of small wineries, is likely to spur sales on the Internet.
About half of California's 1,200 wineries sell less than 5,000 cases a year, and they struggle to get their vintages onto store shelves and wine lists. Except for cult wines, distributors are interested in large accounts -- wineries that make hundreds of thousands, or millions, of cases annually.
"This could turn into a big deal for us," said Joe Hart, owner of Hart Winery in Temecula.
It also may give restaurants and wine shops around the nation a new and cheaper way to stock an assortment of distinctive wines. And holiday gift-givers are likely to find it easier to send wine to family and friends in other states.
But the effect of the ruling on California wine drinkers may be minimal.
Californians already have the right to buy directly from vintners in their state -- which produces 90% of the nation's wine -- and in 26 others, including Washington and Oregon, that allow direct shipping of wine. Texas became the latest state to allow for direct shipping when Gov. Rick Perry signed legislation last week.
Monday's decision brings the laws of eight states that have inconsistent regulation into question. The remaining 15 states do not allow any direct shipment of wine.
The nation has an estimated 3,000 wineries, the court said, with at least one in every state, but only the largest ones have the clout to distribute their wines across the country through a network of state-licensed wholesalers.
"This is the best day for wine lovers since the invention of the corkscrew," said Clint Bolick, counsel for the Institute for Justice in Washington, which represented family owned wineries in California and Virginia in challenging the state bans on direct sales. "This is a landmark victory for consumers and small businesses, and a defeat for economic protectionism."
Despite the celebratory mood within the industry, Monday's ruling only narrowly diminishes the power of the states to regulate the sale of alcohol.
