New York law states prohibits wine shipments from New Jersey retailers to NYS residents. But you’d never know it since New Jersey is home to many wine shops that sell wine online to New York and beyond. One of the state’s highest profile retailers is Wine Library, popularized by Gary Vaynerchuk who once streamed 1,000+ videos from the store.
In a staggering change of direction, the New York State Liquor Authority has now decided to enforce the law on the books. In a letter dated 8/12/13 that has not been seen publicly even though it is on the SLA website, the SLA instructs Wine Library to “immediately cease and desist” sales to New York residents. Wine Library did not respond to a query for comment.
Over the past decade, New Jersey has turned into Read more…
China is waving a broken wine bottle in international negotiations: in retaliation for EU tariffs of 11.8% against Chinese solar panels, Chinese authorities have threatened to place trade barriers on EU wine. The EU alleges that China dumps solar panels below the cost of manufacture and China alleges the same thing for EU wine, pointing to subsidies to the industry. See this Reuters account for details.
But who really stands to lose, European wine producers or Chinese consumers who have acquired a taste for European wines? Well, surely the Lafite crowd in mainland China won’t be crying into their Riedel stemware as they could likely afford to pay any new duties. (Notably, wine coming into Hong Kong would still be exempt.) But it could shift Chinese consumption to other parts of the wine world, such as Australia or the US. Or maybe it would spur interest in domestic wines from China. Or maybe it would snuff out their newly stoked interest in wine. There are always unintended consequences in trade wars.
And, more often than not, tough talk is just a bargaining tactic.
Another symbol of France–wine–is being threatened with a 1,000% tax increase. Will riots break out across the country?
Who is the man with a set of grapes big enough to dare provoke the ire of the French winegrowers and wine consumers? It’s Yves Daudigny, a socialist senator from Aisne (“The Fightin’ Aisne”) in Picardie. I bet they don’t even make wine in Picardie! Wait, what’s that, Jimmy? Champagne is partially in Aisne, Senator Daudigny’s district? Okay, scratch that.
The Senator is clearly a tough nut to crack. Last year he proposed a 300% tax on palm oil in what was dubbed the “Nutella tax.” Mmm, taxes so high you can spread them on your bread in the morning.
Now he’s unleashing his tax machine on the wine industry, proposing to raise the tax from three euro cents to €0.30-€0.60 a bottle! This would bring it inline with beer and spirits. But we all know that beer and spirits deserve that tax. Was there ever a black and white photograph of a child toting a six-pack and a bottle of Johnny Walker under his arm? Non, monsieur!
Senator Daudigny, taxing wine in France is like taxing being French! It’s un-French to even consider it! Moreover, why would you want people to drink less wine? The wine industry is struggling because French people are not drinking enough of the stuff. If you really want a radical reform, try uncorking a take-your-wine-to-work day. Or Hug a Vigneron day. Or how about a subsidy for French wine? It’s already so expensive that people in Hong Kong are bidding bottles to stratospheric levels! Or subsidize hipster wines from the Jura or the Loire to jumpstart exports to Williamsburg and San Francisco.
Don’t make the winegrowers stage protests outside your office with pitchforks and corkscrews!
In a surprising setback for selling wine online, the New York State State Liquor Authority ruled yesterday that the sale of wine by third-party “advertisers” violates its code. Some online sales and marketing companies, such as wine clubs and Lot 18, sell or market wine online without a New York retail license, instead rely on a licensee to process or fulfill the orders. Read more…
In the comments of our recent discussion of the rosé drought that was gripping the Hamptons, a commenter said that the easy answer was to have the wine shipped in (via Gulfstream jet, natch). But, seriously, couldn’t they order wine from an out-of-state retailer and have it sent via UPS?
Well, they could but it wouldn’t be legal. According to a rather sobering map from the Specialty Wine Retailers’ Association, New York is one of 39 states where it is illegal to have wine sent from an out-of-state retailer. A 2005 decision from the Supreme Court rolled back many barriers to shipping wine from wineries to consumers, as states had to strike down laws that discriminated against out-of-state wineries while allowing in-state wineries to ship and about three dozen of them have now leveled the playing field. It’s a no-brainer to me that this should apply to wine shops as well; however, I am not Chief Justice and it’s still an open legal question whether the 2005 decision applies to retailers. Free shipping from wines stores is much more important to the average wine consumer since it would lead to consumers being able to find the best price or provenance anywhere for a range of wines, including those under $20; winery-direct shipping tends to focus on wines north of $20.
Some states, like New York, have porous borders–no eight-foot fence to keep those wine shipments out. Others, such as Massachusetts and Pennsylvania, have found ways to keep wine shipments out or at least down by working with the main carriers, UPS and FedEx. (A New York retailer once told be that shipments to Massachusetts’ islands were often sent back because of the local shops tipped off UPS drivers to report any incoming packages about yay big weighing 40 lbs.) Whether there’s little enforcement or not, wine lovers across the country would be better served with free, legal trade. Sadly, with no consumer movement and the judicial efforts of the Specialty Wine Retailers stymied, there seems little to break the impasse.
Telmo Rodriguez was in full cry when I met him in New York City recently. Although the 50-year-old “driving winemaker” studied enology in Bordeaux, worked a vintage at J.L. Chave in the Rhone, and for 25 years has made his own wines across Spain, what was on his mind when we spoke was Rioja:
“What do we know about Rioja? Just a few brands? Nobody wants to talk about site, or villages. Rioja is the next thing to discover. We don’t know Rioja. If you think you know Champagne and you only drink Moet et Chandon or Veuve Clicquot, you don’t know Champagne! You need to know the specific vineyards.”
Andre Tamers, who imports Rodriguez’ Remelluri wine, agrees: “This is the way that Spain has to move forward: away from brands and toward the land.”
Starting with the 2010 vintage, Rodriguez Read more…
After appearing in two sessions of congress, a legislative proposal that would have threatened the legal, direct shipment of wine is dead according to Shanken News Daily. They cite Tom Cole, president of Republic National Distributing Co., who says “The CARE Act is officially off the table.”
Wine lovers can breathe a sigh of relief. And we are dialing the official HR 1161 threat level back to neck level! (See backgrounder here and here). We were concerned that in the “lame duck” session when oh-so-much wheeling and dealing is likely to be done, that it could have squeaked through in some form. It still might, but the wholesaler will appears to have slackened.
I wonder what led the wholesalers to pull in their legislative claws? The brief Shanken News piece had no insights in this regard. But in this Super PAC era, it would be delightful to think that possible voter outrage trumped campaign contributions. It is interesting to note that wholesalers recently did an about-face on a restrictive reform in New York State. Hit the comments with your take on the situation.
What if you could not buy a book at a bookstore in New York if it had come from a New Jersey warehouse? Or fill your car up with gas in New York if the truck that brought it to the gas station came from New Jersey? We can agree that would be silly. About as silly as trying to prevent wine wholesalers who sell wine to NY wine stores and restaurants from going about their business if they have a warehouse in New Jersey.
But that is exactly what is happening. A large wholesaler is trying to prevent smaller wholesalers from using their existing warehouses in New Jersey by inserting an “at rest” provision in the state senate’s 2012 budget. This would require all wines to come from warehouses in New York. While I do care about the provenance of my wine, I do not care one whit if it comes from a (climate-controlled) warehouse in NY or NJ. Some specialty shops and small wholesalers are uniting to try to stop this before Friday, March 9. An email that has been making the rounds today follows after the jump: Read more…