New state law limits what wine lovers can buy on Internet

Discussion in 'Politics' started by rubibond007, Jun 1, 2008.

  1. leave it to the politicians to "protect you from yourself"....god knows that without their deep knowledge and wisdom and if they let the consumer do as they please, the world would come to an end.....god bless the politicians but just remember that when they are in session thinking of ways to protect us from ourselves, just watch out for your checkbook!!!

    This Crap is socialism 101.

    New state law limits what wine lovers can buy on Internet

    By Cheryl V. Jackson Chicago Sun-Times

    Saturday was the last day for Illinois wine enthusiasts to order online before new restrictions limit their options.

    Today, a state law takes effect that prohibits out-of-state retailers - including Internet sites, brokers and auction houses - from shipping wine products directly to Illinois consumers.

    While out-of-state retailers are prohibited from shipping directly to Illinois consumers, out-of-state wineries that are licensed by Illinois can sell up to 12 cases of wine a year to an Illinois resident.

    Illinois wineries also can sell up to 12 cases each to an Illinois resident in a year. Those producing less than 25,000 gallons a year can sell up to 5,000 gallons directly to retailers, while larger in-state wineries will have to use distributors to get their products to stores and restaurants.
    Some Illinois wineries have expressed fear they won't be able to find distributors willing to take on their small business, so their product won't reach as many consumers.

    Scott Lawlor, president of Galena Cellars Vineyard & Winery, is bracing for a 20 percent cut in sales from the new law. Galena Cellars produces about 60,000 gallons a year.

    Galena and another large producer, Lynfred Winery in Roselle, are leading an effort to get self-distributorship restored, having founded an Illinois wineries group. Lynfred and Galena combined produce about one third of Illinois' wine.

    "I can't afford to have a distributor. He'll take 27.5 percent of the total cost of my bottle," Lawlor said.

    Raising the prices 27.5 percent is not an option for small wineries like his, he said.

    The bill, which Gov. Blagojevich signed in October, was designed to protect the state's $253 million-a-year wine industry and the system that funnels sales of wine in Illinois through distributors. It brings the state into compliance with a U.S. Supreme Court decision mandating states have a "Golden Rule" policy with regard to winery sales: If I can sell wine in your state, you should be able to sell wine in my state in the same way.

    About 50 out-of-state winemakers have been granted the $250 to $1,000 licenses to sell directly to Illinois consumers.

    While it would violate the law to make an in-person purchase of wine at an out-of-state retailer and have it shipped to an Illinois address, regulators are focused primarily on cutting Internet sales of wine to Illinois customers, said Rick Haymaker, chief legal counsel for the Illinois Liquor Commission, which licenses the shipping.
  2. This isn't new. It isn't about socialism or protecting you from yourself.

    It's been around for a long time as a form of protectionism for each state to protect their own growing wine industries. It's also about getting sales licenses from out of state businesses.

    If you're visiting somewhere, the winery can be restricted from shipping to you, depending on where you're from. If they can't, YOU have to make arrangements at UPS to ship it yourself. Wineries can help you with this, providing shipping containers, collecting fees for UPS, etc, and allowing you to leave your wine at their place to be picked up.

    Lot's of grey areas to work.