Posted on 05/17/2005 5:07:53 AM PDT by wmichgrad
WASHINGTON -- Michigan wine lovers hoping a newly issued U.S. Supreme Court ruling might open the door to wine purchases from out-of-state vineyards shouldn't uncork their enthusiasm quite yet.
In reaction to Monday's court decision, Michigan Liquor Control Commission Chairwoman Nida Samona said she'll ask state lawmakers to ban all in-state as well as out-of-state shipments of wine.
"There shouldn't be any shipment of wine or any other alcohol product through the Internet, the mail or any other form," Samona said. "It should be purchased directly, face-to-face."
In a 5-4 ruling, the justices overturned Michigan's ban on out-of-state shipments of wine to Michigan consumers, saying it is unconstitutional because it treats in-state and out-of-state wineries differently. In-state wineries can legally ship wine to consumers within Michigan.
With the decision in hand, Samona said the commission's options are to ask the Michigan Legislature to ban all shipping or to allow all shipping. She believes the best route is to expand the ban because she said it is the best way to ensure that minors do not illegally purchase alcohol via the Internet or by telephone.
And it's unclear when and for how long consumers might be able to purchase wine over the Internet.
"The state has the ability to ask the Supreme Court to rehear the matter over the next 25 days," said Eric Eagan, an attorney with Honigman Miller Schwartz and Cohn in Lansing who led the state's efforts to defend the law until recently. "The law is more or less stayed during that time period, but after that, it's really up to the commission and the state Legislature."
Michigan's winemakers barely had time to soak up the good news from the high court when Samona told the media of her plans. Vineyard owners have been grumbling for years that the out-of-state ban was hurting their business, and they didn't react well to proposals to extend the ban to in-state shipments.
"It is very concerning to me the way the commission feels," said Paul Landeck, vice president at the Tabor Hill Winery and Restaurant in Buchanan. "Banning all shipments would be a lose-lose situation as far as I'm concerned."
Landeck said many wineries use shipping to reach far-away customers since wholesalers inside and outside of Michigan often choose not to carry wines from smaller vineyards.
Twenty-seven states allow direct-to-consumer sales over the Internet or by telephone. The remaining 23 states require out-of-state wineries to sell their products through licensed wholesalers in a particular state.
The court's decision Monday struck down an out-of-state wine shipment ban in New York as well as Michigan.
Wine sales top more than $21 billion annually in the United States. There are about 2,700 wineries nationally. Michigan's 40 commercial wineries contribute about $75 million into the state's economy with wine sales and winery tours.
While proponents of expanding the shipping ban say it would provide important protections for minors, foes of the proposal say what's really at stake here is money.
Michigan's three-tiered liquor control system requires customers to purchase liquor from licensed instate retailers who purchase from licensed wholesalers who purchase from licensed manufacturers.
Allowing manufacturers to sell directly to consumers via the Internet or by telephone cuts the retailers and wholesalers out of the process, eating away at their profits.
Not surprisingly, any attempts to link consumers to manufacturers directly have been opposed by wholesalers.
"States have a choice between supporting face-to-face transactions by someone licensed to sell alcohol or opening up the floodgates," said Juanita Duggan, president and chief executive officer of the Wine & Spirits Wholesalers of America Inc. "The WSWA supports state efforts to strengthen, not weaken, alcohol laws by making all producers play from the same set of rules."
Samona was uncertain who would introduce the legislation to expand the ban to in-state shipments in the Michigan Legislature, but she was fairly certain it would be received favorably.
The Michigan Beer and Wine Wholesalers Association is considered one of the state's most powerful lobbying groups.
Robert Koch, president and chief executive officer of the Wine Institute, a California growers consortium, said he hopes vineyard owners in Michigan will join with consumers to fight the ban.
"In the case of both Michigan and New York, the wineries in those states want to see the state level up and open up (the market)," said Koch. "They're not going to be in favor of shutting down all direct shipments. We firmly believe the consumers in Michigan and New York don't want that either."
Contact reporter Sarah Kellogg at (202) 383-7810 or e-mail her at skellogg@boothnewspapers.com.
got to get those tax dollars into the state's coffers............that is what this is really about
"There shouldn't be any shipment of wine or any other alcohol product through the Internet, the mail or any other form," Samona said. "It should be purchased directly, face-to-face."
New York and Michigan...aren't these the shining lights of blue state tax and tax and spend policies. Can't have anything that hurts state coffers that might reduce government benefits (to the government workers and opoliticians). Free markets be d@mned.
Don't you know, it's not about the taxes, it's for the children? </sarcasm>
Not that Americans should be allowed to conduct business with anyone, anywhere they choose. Screw these stupid lawmakers who only see us as cash cows.
Not that Americans should be allowed to conduct business with anyone, anywhere they choose.
****
Yup...socialism.
yepper, m-o-n-e-y. But they had to mention tabor hill....mmmmm, demi sec....good stuff, gotta go to the wine store now today...
Michigan does their best to suck as much cash out of our pockets as possible. Or to put it more succinctly, Michigan Sux!
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