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CHOICES?
What would you think of a law that made it illegal for you to order
oranges from Florida, or cheese from Wisconsin or chocolate from
Belgium or coffee from a fair trade importer in New York? That is the
situation we face in Indiana with the purchase of another gustatory
pleasure: wine!
A RELIC OF PROHIBITION.
Following the repeal of Prohibition in 1933, Indiana established the
so-called "three-tier system." It requires all wine producers to sell
through a small and privileged number of "wholesalers", who in turn sell
to retailers and dealers, who sell to us, the ultimate consumers. Thus
the wholesalers are the arbiters who select the wines we are allowed to
purchase and drink in Indiana. If they decide they will not make enough
profit on a certain wine, or if they feel they already have enough
choices and want to carry no more inventory, then - you guessed it -
they will not sell that wine in Indiana.
This system was originally justified on the basis that it would keep
wine out of the hands of minors and assure the collection of excise and
sales taxes. In practice, the system has created a highly profitable
state-sanctioned oligopoly, with what the eminent economist Paul Samuelson
referred to as its "monopoly elements." The majority of other states
have substantially modernized their laws to reflect our current society
and enhance the environment for choice and competition. It is time to
end prohibition era thinking in Indiana.
FREE MARKET? YEAH, RIGHT!
Any oligopoly, especially a state mandated oligopoly, can be thought
of as a public subsidy of a privileged few. As with all monopolistic
systems the consumer is vulnerable to both inflated ("monopolistic")
pricing and to control and limitation of supply and choice. We
believe that in Indiana we see both happening. Real, vigorous
competition does not exist here in this commodity. And there is no
social good that the State or its citizens realize as a trade-off.
Do we oppose the existence of wholesalers? Absolutely not!
Wholesalers will undoubtedly continue to serve an important function
in the distribution of most wines in Indiana for the foreseeable
future. We do oppose their stranglehold on the supply and choice
of wines consumers may enjoy. Most wine in this state will continue
to be bought in restaurants and from wine merchants. We ask that
consumers be free, however, to order those special wines they want
from sources inside and outside the state.
ONLY FIVE PERCENT.
There are a huge number of wines produced around the world. Because
the wholesalers will each carry only those wines they feel will sell
in large enough quantities to maximize their profitability, Hoosiers
have legal access to less than 5% of the different wines produced.
Remember that nice Willamette Valley pinot noir you had on vacation
last summer? If the Indiana wholesalers don't carry it, you would
have to break the law to order it from the winery. Of course, the
winery will not ship it anyway, since they would break the law to do so.
THE CHALLENGES.
The wine and liquor wholesalers are one of the largest "campaign
contributors" to our elected representatives in Indiana. In 2006
an amendment to Indiana's wine laws, drafted largely with the guidance
of the wholesalers' trade group, was passed. It purported to "enable"
the direct sale of wine by wineries, inside and outside Indiana, to
Indiana consumers. However, it was so loaded with conditions and
restrictions that it made it impractical and uneconomic for out of
state wineries to comply, and even hurt in-state wineries.
It will not be easy to dislodge this wealthy, powerful, and
anti-competitive clique from its stranglehold on this simple commodity.
We start by doing what we can to make sure that consumers have a voice
that is heard. In doing so, we will strive to promote the responsible
use of wine, to protect underage citizens from the consumption of
alcohol, and assure that the legal controls and collection of taxes
strike a balance between the interests of the state and the rights of
individuals.
WHY JOIN VINSENSE, INC.?
There is strength in numbers. We cannot expect to match the
wholesalers in financial clout, but our lawmakers will listen if
there are enough of us clamoring for change. Help send a message
to Indianapolis:
"WE LIKE WINE, AND WE VOTE".
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Ruling Boosts Home Delivery
This message is from the Federal Trade Commision
CONTACT YOUR INDIANA
LEGISLATOR!
Radio scoop on Indiana's prohibition law HERE!
Articles of Interest ...
Nat Decants FREE Wine E-Newsletter: Wine picks, articles and humor from
Natalie MacLean, named the World's Best Drink Writer at the World Food
Media Awards in Australia. Natalie is also the author of Red, White and
Drunk All Over: A Wine Soaked Journey from Grape to Glass. For more
details on this book and to sign up for the newsletter, visit
www.nataliemaclean.com.
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