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| United States Supreme Court |
For the first time in more than a decade,
the U.S. government has shown a willingness to reevaluate how wine and spirits
are sold, both within and between various states in the country. In fact, the case of Tennessee Wine and
Spirits Retailers Association v. Clayton Byrd (Tenn. v. Byrd) represents only
the second such move by the high court since the repeal of Prohibition in
1933. When Prohibition was repealed, the
U.S. government decided that the safest way to regulate alcohol sales was by
giving each state the right to decide how wine and spirits were sold within its
borders. That resulted in a fractured legal arrangement in which almost every
state handled the sale and shipment of drinks differently.
Whether major retailers will be able ship
into adjoining states, or across the country, as a result of this case is the
most important question that will be answered by the Court’s judgment. Its
ruling will define consumer access to wine and potentially provide more
competitive pricing. Retailers may soon
be able to ship into more states depending on how the court votes. This is all
contingent on whether, “the case is upheld in the Supreme Court and if the
states start to pass amendments to their direct shipping laws.” “Retailers have long been saying this
principle of nondiscrimination should apply to them as well as wineries. It
seems to me impossible that the Court will not answer this question in the
coming case. If the court applies the principles of Granholm to retailers, then
many states will need to change their laws and decide if they want out-of-state
retailers to ship.
However, whatever changes the court case
may bring will take some time to implement. “The change won’t be immediate.
States would still need to adopt legislation and regulations to allow for shipping,
delivery, and collection of taxes.”
The outcome of this case will make a huge
difference in the wine, beer and spirits business. For the consumer, it is a chance to get a hold
of brands and expressions that have not been available to get in their home
town or state. I for one, have to travel many miles to get some of the
rums that I enjoy. If it was like
everything else in this country, that I need I just order it on line and it is
delivered to me even here in Key West.
