Inching toward normalcy
The craziest thing about being a wine consumer in America is that actually getting wine can be so difficult. And if it’s not impossible to find, a wine–the exact wine you are looking for–can be expensive. There’s so much red tape it’s almost enough to make you drink beer.
Well, the US wine market just inched toward normalcy. While Staples can order staplers directly from the producer in China, wine stores in New York have been prevented from ordering wine directly from wineries in California. The wine must go through a state-licensed wholesaler and a wholesaler cannot also be a retailer. This can create a bottleneck preventing the wine from low-volume producers who can’t interest a wholesaler in taking on their wines.
Thanks to some new software and a more generous interpretation of the stodgy laws, wine stores and restaurants in New York can now order “directly” from wineries in California. The stores can order from small wineries and the software “clears” the wine through a participating wholesaler who pays appropriate taxes to NYS. The wholesaler is still getting paid (presumably less than their normal markup of 30-50 percent) simply for having a distribution license and not adding any logistical or sales value. But at least the consumer has a slightly greater choice since there will be a few more six-packs of limited-production wines in Manhattan.
I wonder who gets bumped off the Screaming Eagle mailing list so that Sherry-Lehmann can get on?
Seriously, I hope that it will increase the visibility of wines from the Pacific Northwest. I have been underwhelmed by their representation in NY stores. Let’s just hope the prices are reasonable…
Related: “New York Merchants can by wine directly – almost” [Decanter]
UPDATE from the Dr. Vino inbox: “To me, this seems another example of a big deal being made out of something that will ultimately have no real impact on retail stores. Also keep in mind that larger stores (and restaurants especially) don’t like having 18 different vendors and also like to use relationships / partial exclusivities to get more allocated wine and better deals…”
tags: wine | the business of wine
