National Association of Wine Retailers Examine State of Wine Retailer Shipping and Offer Framework for Effective State Regulation
January 7, 2024 (Sacramento, CA) — A White Paper released today by the National Association of Wine Retailers (NAWR) examines the state of interstate wine retailer shipping and the roadblocks that prevent consumers from accessing hundreds of thousands of wines and state governments from collecting substantial revenues. Interstate Retailer Wine Shipping: A Primer for Lawmakers, Regulators, and Stakeholders delivers the first-ever comprehensive examination of the regulatory, legal, historical, and political issues surrounding interstate wine retailer shipments and a roadmap for effectively regulating the practice.
Despite the dramatic migration by consumers to online shopping and the rise of efficient interstate delivery of goods over the past quarter century, the online retail purchase and delivery of wine has been practically shut down by states seeking to preserve advantage for in-state wine retailers and wholesalers. However, bans on retailer shipments in 37 states deprive consumers of access to hundreds of thousands of wines only available from a limited number of retailers in various parts of the country. Today only 13 states allow wine shipments to consumers from out-of-state wine retailers, wine auction houses, wine-of-the-month clubs, and internet wine retailing specialists.
A COMPREHENSIVE OUTLINE FOR REGULATING RETAILER WINE SHIPMENTS
Outlined in the NAWR White Paper is a comprehensive system for successfully regulating wine shipments from out-of-state wine retailers in a way that respects the integrity of the traditional three-tier system, provides for protection against minor access, and delivers substantial tax revenue to state governments that are left on the table when interstate retail shipments are banned by law. The White Paper addresses a variety of issues surrounding the regulation of retailer wine shipments including jurisdictional issues, reciprocal versus permit regulatory systems, product and volume limits on shipments, reporting, taxation, and delivery requirements.
“While NAWR vigorously advocates for legal reforms to allow interstate wine retail shipments, we also understand that lawmakers and many alcohol regulators may not have the background in nor exposure to the simple and effective means by which retailer shipments of wine to consumers can be regulated,” said Tom Wark, executive director of NAWR. “The newly released White Paper is the only comprehensive exploration of this important channel for wine distribution ever prepared for lawmakers, regulators, and stakeholders.”
CONSTITUTIONAL INTEGRITY SHOULD LEAD LAWMAKER DELIBERATIONS
The question of the violations of the Constitution that come with states banning shipments from out-of-state retailers while allowing shipments by their in-state retailers is also addressed in the White Paper. This issue is currently litigated in seven states with discriminatory bans on retailer wine shipping. The White Paper cautions lawmakers that protectionist laws that restrict their citizens’ access to legal products are ultimately detrimental to the state, the rule of law, and their own consumers and should be avoided.
About The National Association of Wine Retailers
NAWR is a trade association made up of independent fine wine retailers, auction houses, and other associated organizations and businesses located across the country. Founded in 2006, NAWR advocates for reforms to the antiquated alcohol regulatory system, provides significant member benefits, and works to educate the alcohol trade, the media, the alcohol regulatory community, and lawmakers about the benefits of a level playing field within the alcohol industry. For more information see http://www.nawr.org.
