The National Wine UnClub
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June/July 2001


The Grapes of Wrath

There's a flash and fire on the horizon. The hue and cry of wine warriors around the nation can be heard as the battle for control over access to alcoholic beverages in each state heats up. The battle lines are drawn between everyday consumers and big liquor giants who control how you and I purchase our adult beverage of choice. To remain unaffected, simply cease all consumption of wine, beer, and spirits!

That's not likely to happen with most people who are aficionados of drink, let alone those poor souls who are consumed in their addictions to alcohol. The producers, importers, wholesalers, and retailers of potent potables aren't in any immediate danger of losing market share in this field. Of course, due to antiquated liquor control laws enforced in each state, a thriving grey and black market exists for these products.

To clarify: a grey market indicates a partially legal exchange of alcoholic beverages, where the initial order and delivery of the item in question is sold by a legal dealer and reaches a legal market and an authorized end-user. The illegal aspect occurs when the authorized end-user turns around and sells his legally-purchased wine, beer, or spirits product to another party not authorized to buy from this dealer. This happens, for instance, when a wine connoisseur sells his wine collection to another aficionado within the boundaries of a control state (ie. Florida, Illinois, New York, California, Texas, etc.).

The black market occurs when an illicit dealer sells to either an authorized or an unauthorized end-user. The Al Capone's of the world are quite familiar with this type of extremely profitable trade! These guys get their products from an illegal source (like Capone did procuring Canadian whiskey during Prohibition) selling it to both legal and illegal dealers. Most illegal drugs are handled in the same manner.

As is probably obvious by now, most people involved in the grey market participate in their 'nefarious' trade activities unaware of how illegal it is. I don't know how many times a wine customer has approached me trying to sell his collection of aged Bordeaux or the like. I always politely explain to them that I cannot purchase (or even offer on consignment in my shop) his valuable personal collection of vino. They walk away enlightened about the laws regarding this kind of exchange and saddened that they cannot just sell their collection for what it's worth.

Why is this situation so fraught with legal dangers? Why can't we wine aficionados unload our special bottles of wine without fear of doing some serious jail time (or at least paying a hefty fine)? Don't ask me...ask your local spirits and wine wholesaler. These guys know all about the control of access issue. They invented it! Along with multi-national producer/importer liquor giants who use state laws (through their funding of state legislators' election war chests) to impose their will on the consumers of this product.

It's no wonder that people knowingly (and unknowingly) break the state laws concerning wine, beer, and spirits distribution. Anyone you know ordering wine over the internet? Unless you live in a state allowing out-of-state wine shipments and deliveries, this is a breach of a well-enforced state regulation regarding traffic of alcoholic beverages. Their order, if discovered, will be confiscated and, if the order is large enough, they will be investigated by the state liquor control board.

Shades of National Socialism to me. Don't get me wrong...I sell wine, beer, and spirits as a retailer. Customers buying these products over the internet (or otherwise) can actually put me out of business at some point. I just don't agree that mature adults should have their hands slapped (and worse!) over the simple desire to order an obscure wine label from a tiny California winery. If the wine is offered locally through normal distribution channels, then fine, the customer should buy that wine locally. Otherwise, let them get the product legally from the producer (or the producer's agent) out of state.

Establishing a limited range of possibility for minimal orders of this sort (say, a one case order per month maximum) would go a long way towards calming the increasing unease of John Q. Public. Such a provision might prevent a full-scale consumer revolt with the probable severe backlash against politicians and liquor companies alike now in the making.

Can't we all just get along?

 

Cheers!

Donald W. White


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