Wine drinkers beware: Congress could limit your consumption

By Tom Wark  2011-5-4 10:47:16

House Resolution 1161 could prohibit shipping wine between states. Stop it.

"Politics and wine." Not a combination many of us contemplate. Wine and aroma … wine and taste ... wine and texture — yes. Wine drinkers are rarely aware of the nexus of wine and politics, but they go together every bit as purely as foie gras and sauterne. And it turns out that if we don't take the time to concentrate on the politics of our favorite drink, we may wake up to discover that the most important aspect of our avocation -- access -- is being curtailed.

House Resolution 1161, known as the Community Alcohol Regulatory Effectiveness Act, is presently sitting in Congress. If passed, it would significantly inhibit our ability to buy the wines we want.

First, some background.

The primary reason the United States Constitution was adopted in 1789 was not to guarantee Americans the right to free speech, religious association, freedom of assembly or a free press. It was to invalidate a number of laws that, adopted to protect local businesses, discriminated against the shipment of out-of-state goods. Such regulations severely hampered economic growth in America.

This problem was addressed with Article 1, Section 8, known as the Commerce Clause of the new Constitution: "The Congress shall have Power to regulate Commerce with foreign Nations, and among the several States, and with the Indian tribes."

Its meaning is simple: The federal government, not individual states, will regulate trade between the states. The Commerce Clause is a guarantee that the American marketplace will not be subjected to interstate trade barriers.

Until recently, numerous states including New York, Texas, Maryland and Michigan banned residents from receiving wine shipped from vendors outside their borders -- blatantly discriminatory. These bans were challenged, and in 2005 the U.S. Supreme Court issued a ruling in the case of Granholm v. Heald holding they were unconstitutional:

"States may not enact laws that burden out-of-state producers or shippers simply to give a competitive advantage to in-state businesses."

The lesson of the Granholm case was that states could ban or allow wine shipments to consumers, but they had to treat in-state and out-of-state shippers equally. For example, if a state allows its own wineries and retailers to ship wine to its residents, it must allow out-of-state wineries and retailers to do the same. This important case held the promise of giving wine lovers in trade-friendly states access to the growing number of wines entering the American marketplace.

To a wine lover, it's imperative to be able to buy different styles and vintages from a variety of sources around the country, retailers who specialize in foreign wines and hard-to-find and collectible bottles, as well as domestic wineries and wine-of-the-month clubs.

Enter H.R. 1161, which would once again allow individual states to discriminate against out-of-state wine sellers. Congress seems poised to hand its right to regulate interstate wine commerce back to the states where discrimination against out-of-state wine sellers would become constitutional.

Why would Congress pass H.R. 1161 and move wine sales in America backward? Because wholesalers prefer it that way. The push behind H.R. 1161 comes from wholesalers, the wine, spirits and beer middlemen who must operate within state borders. They're the ones who make a living by getting the wine from the vintners (as well as the breweries and distilleries) and importers to the retailers. Wine shipped to a consumer from an out-of-state retailer or winery bypasses the coffers of the wholesalers — and alcohol wholesalers are among the most powerful special interests operating in Washington, D.C. Thanks to their considerable campaign donations to Republican and Democratic representatives, they were able to get H.R.1161 introduced into Congress, and it is gaining an alarming amount of support.

This is bad for consumers. Very bad. If passed, you will see a number of states adopt laws that once again discriminate against out-of-state wine sellers and make it impossible or very difficult for consumers to get the wines they want. Instead, they'll have to be content with the often paltry selection wholesalers make available to local retailers.

Don't let wholesalers or politicians tell you what wine you can drink. There's time to defeat H.R. 1161. Here's what to do:

1.Go to the Free the Grapes website to send a letter to your congressional representative asking them to oppose H.R. 1161.
2.Join the StopHR1161 Facebook page and stay informed.
3.Sign your name to a petition opposing H.R. 1161.

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Tom Wark has worked in wine communications for more than 20 years and is the executive director of the Specialty Wine Retailers Association.


Photo: Tom Wark.


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