KPB
Posts: 4649
Joined: 11/25/2012 From: Ithaca, New York Status: offline
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quote:
ORIGINAL: mc2 wines quote:
ORIGINAL: S1 What is the current status on shipping restrictions to New York? It seems to be going the wrong direction. Partly correct: No longer fully accurate, as of today, but your summary would have been right until about six months back. It has been screwed up for at least a year, but there is a law in the pipeline that will realign retail direct shipping with existing (permitted) direct shipping by wineries. Looks very likely to pass. Back a couple of years ago, the "big bev" crowd (3-tier distributors) and the association of NYS wine retailers were favorable towards a crackdown: the law as written didn't block them from exporting from the state and was written to block shipment into the state, and the Supreme Court decision on direct shipping only required reciprocal privileges for wineries, not retailers. They apparently figured it would improve their margins and sales. But while this is probably valid reasoning for InBev and similar giants, the small places hadn’t noticed how dependent they were on outgoing shipping, and what they wanted to block was incoming, not outgoing. So you had a situation in which NYS only blocked incoming wine and spirits, but where other states retailiated, blocking outgoing stuff from NYS too. Gosh, who would have thought? It burned the smaller retailers and the larger direct-sales companies badly, and now they got organized to repeal the old law entirely -- their representatives previously favored enforcing it, but now these same organizations favor opening things up. Go figure! Upshot: there is a law making its way through the NYS legislature. It wasn't scheduled for a vote in 2017 but definitely will be scheduled early in 2018, and seems likely to pass, now that the state wine retailers understand that it is in their interest and support it: the big bev crowd has money, but they were leveraging the short-term blindness of the retailers to make it look like everyone hated direct shipping. Now that the coalition has collapsed, money from big bev isn't enough to sway the vote. So, it should pass. It may take a few years for fully reciprocal shipping to reappear. The NYS law change doesn’t say anything about reciprocal privileges, so wines from out of state will reappear instantly once this passes. But the point is that it doesn’t actually pressure other states to allow incoming wine, so out of state buyers may still be blocked from ordering from NYS sellers. We in NYS will enjoy "best of all options" again, but it could be a while before that is true in, say, Illinois. So we still have a few years before national-scale fully open shipping is common. Even then, some states will remain buckled down for a while... Maybe even many years....
< Message edited by KPB -- 12/14/2017 6:23:59 AM >
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Ken Birman The Professor of Brettology
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