Harris Teeter and E&J Gallo Winery put off plans for wine club

Request to state ABC board for partnership with Gallo winery was withdrawn.

Harris Teeter and E&J Gallo Winery have tabled plans to partner and bring Harris Teeter shoppers a digital wine club.

This week, the companies withdrew their request for an exemption to state alcohol laws that would have cleared the way for the club.

The sticking point: a state law that prohibits an alcohol manufacturer, bottler or wholesaler such as Gallo from having a financial interest in the retailer with which it does business. It also prohibits such manufacturers from giving alcohol retailers any service or thing of value.

The state Alcoholic Beverage Control Commission was expected to vote on the exemption request at its March meeting Wednesday.

The club, which would have built on Harris Teeter's existing 50,000-member Fine Wine Club, would offer shoppers suggestions, allow them to write reviews and offer a purchase history for members. Gallo hoped to use the program as a pilot for partnerships with other retailers.

Gallo said the content of messages to club members would be controlled solely by Harris Teeter, but the proposal drew fire from critics, who expressed concerns about such a partnership giving Gallo an unfair advantage over competitors.

While both companies and the ABC confirm that the application was withdrawn, none of the involved parties were willing to say much about why.

"It is clear that concerns exist within the industry regarding our petition to the Alcoholic Beverage Control Commission," wrote Gallo shopper marketing manager Karen Mizell in an e-mail statement. "As a result, we have pulled the petition from consideration at this time and we will continue to work with the industry to answer their questions and resolve their concerns."

Jennifer Thompson, spokeswoman for the 202-store Harris Teeter chain, concurred, adding, "Harris Teeter will continue to look for ways to improve its Fine Wine Club for its shoppers."

However, neither company would confirm that the planned wine club and partnership is done for good.

"We are still exploring our options," Thompson said.

Critics of the proposal are silent for now. Kristopher Gardner, a Raleigh lawyer who represents the N.C. Beer & Wine Wholesalers Association, declined to comment about the withdrawal.