Small Wineries Win Big Victory in Supreme Court

Direct wine sales companies have won a significant victory. States will now be required to treat intra- and inter-state wine shippers equally. The real winners are wine lovers.

(PRWEB) May 18, 2005 -- Direct wine sales companies have won a significant victory. This morning, in a 5 to 4 decision, the Supreme Court concluded that states can not discriminate between intra- and inter-state commerce.

About 24 states either prohibit or hinder out of state direct to consumer shipment of wine. Many of these states exercise economic favoritism to local wholesalers or distributors. Justice Anthony Kennedy wrote for the court, If a state chooses to allow direct shipping of wine it must do so on even handed terms."

Dr. Stuart Townsend, owner of The Party Wine LLC a direct wine shipping company, says the big winners here are wine lovers, who will no longer be dependent on regional distributors and wholesalers for their choice in wine. The wholesalers and distributors do business with wineries based not on quality but on quantity and expected sales volume. They know big companies will back their product with advertising and often will successfully move inferior products off the shelves. They commonly refuse to carry wines that produce less than 2000 cases per year. Because of this, we were also in a discerning tailspin toward homogenization of wines. Now consumers have a real choice."

In the coming days, affected states will choose whether to disallow any direct shipping or to do to so in an equal and fair manner. Many are urging their local congressmen to open their markets, thus allowing easy access to high quality, boutique wines.

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