Thursday, April 22, 2010

The Law of Unintended Consequences

If you couldn't tell by now, over at Purple Teeth Cellars, we are pretty fired up about the absurdity and hypocrisy surrounding HR 5034. You can read more about it in our previous post here as well as on Tom Wark's Fermentation blog that gets into more specifics. A campaign is underway to get people to write their elected officials on the federal level about why this bill needs to be rejected. You can e-mail your elected official very easily by using this link that will pre-populate your elected officials' contact info once you type in your name and address. It takes less than 5 minutes.

I wanted to talk a little bit more about a scenario that I see playing out as a result if this legislation is in fact passed. Some of you know that I spent a good chunk of my life in the northEAST corner of the US. As such, many of my family and friends reside in that section of the country. Imagine if my friend, Billy, came out to Washington state for a visit and told us that he is interested in trying some wine from the northWEST corner of the US after he has heard us rave about some of the stuff we have been drinking on Facebook.

We bring him out to Yamhill, Oregon to taste some fabulous Pinot Noir from Patricia Green Cellars. Or we bring them out to Prosser, Washington to taste some awesome Syrah from Bunnell Family Cellars. They are impressed, as he should be because both of these wineries produce some of the best stuff out there. Billy asks how they can get some of this back home because they do not have access to these wines through their local stores. Now right now, Billy is able to have the wine shipped so he can share it with his friends. His friends, particularly Carolyn, are duly impressed and the question comes up, "how can I get this myself?" Billy gives Carolyn the info and she places an order. So both Billy and Carolyn, who had never heard of these wineries previously, now have each purchased wine and may purchase more (and get their friends to buy some, too!). More money being spent in the economy, which is a good thing for everyone involved.

Now if HR 5034 is passed, this doesn't happen. Billy may visit, but if he cannot ship the wine back to his home because the wholesalers do not feel like carrying so many small producers (and the small producers do not want to cede their entire profit margin to a wholesaler), why would he buy wine? That's less money into the economy, which is not a good thing – particularly these days.

How many of you have taken a trip to Napa and/or Sonoma? You stay at a pretty bed & breakfast, eat at great restaurants, visit lots of tasting rooms, drink lots of wine, etc. If you could not ship the wine that you tasted on your trip back home, would you still go? For many people, probably not. For every group that decides not to make that trip, think about more unintended consequences. All of those people who wait on you at the B&Bs, restaurants, tasting rooms, etc. – if people are not coming in, are they going to have jobs? Probably not. So more people out of work, and given the current state of the economy, we definitely need that (huge dose of sarcasm).

And for what – because six (6) companies control distribution of over half the wine and spirits in the entire country, and want to keep it like that! Yep, you read that right – six companies control 50% of the wine distribution in the US.

So please think about this and use this link to automatically generate an e-mail your elected officials. You can also help by not only e-mailing your elected officials but by also passing the word on to your family and friends. Again, this is not just a wine issue. There are far ranging consequences to passing a bill like this. What is outlined only scratches the surface. If wine is regulated by a select few in power in Washington, DC, what is next? Certain magazines will no longer be able to be shipped to your home because someone at 7-Eleven needs to validate that you are old enough to read that material?

Thanks again for your support and don't forget to keep on flashing those PURPLE TEETH!

posted by Jill @ 8:13 AM        0 Comments


Tuesday, April 20, 2010

Going in the Wrong Direction for Consumer Choice

We're going to say it straight away: We need your help!

Some of you may be familiar with the efforts of Purple Teeth Cellars to open up state lines for all US consumers to be able to choose which wineries they would like to patronize. We try and promote the importance of direct shipping of wine to customers, without wholesalers and distributors making the choices for us. Here at Purple Teeth Cellars, we are grateful that you consider buying our wine but if you opt not to because you tend to like white wines or Pinot Noir (we currently only focus on red Rhone varietals), then that is your choice and we can only respect your choice.

But when we hear from prospective customers in certain states that they tasted our wine at someone else's home and want to buy some for themselves, but can't due to arcane shipping laws that preclude us from shipping directly to that state, that upsets us a great deal. And unfortunately an effort is under way to undermine consumer choice and end direct shipping of wine throughout the US in the form of HR 5034. This bill is being sponsored by a number of organizations, including the National Wine Wholesalers Association and the National Beer Wholesalers Association – these groups are also known in some circles as "middlemen".

For every state that allows direct shipping of wine, it means less of a piece of the pie ($$$) for the middlemen so obviously they have a lot to lose. But YOU as the consumer have more to lose than they do. Small and many medium-sized winemakers cannot afford to pay wholesalers a piece of their margins because of the nature of the business being so linked to economies of scale. Contrary to what you may have seen on that 80s TV show, Falcon Crest, winemaking is not a hugely profitable business unless you are making mass quantities of it. And BTW if you know that show, then I guess you now know I am dating myself a tad - LOL. But I digress.

On the other hand, a number of groups and highly influential individuals/publications are trying to band together to notify consumers of what the wholesalers are trying to do. In addition to letting people know, they are educating customers on how they can influence this bill from NOT being passed in Congress. Purple Teeth Cellars is happy to be a part of these endeavors and asks you to participate by writing to your elected officials on the federal levels. This is where we need your help in writing your elected officials ASAP!

You can find out who your federal Congressman or Congresswoman is here. You can find out who your US Senator is here. In terms of what to include in your letter, here are some thoughts from one of the Facebook groups marshaling against this effort:

  • Tell them early on that you are their constituent and that you are urging them to oppose HR 5034.
  • Explain that the bill will lead to prohibitions on the direct shipment of wine, hurting consumers as well as small wineries that cannot get proper distribution and rely on direct to consumer shipping.
  • Tell them, "The bill will prevent any court challenges to discriminatory wine shipping laws that hurt consumers and wineries. The bill flat out discriminates against small wineries and is a huge barrier to having a fair playing field to compete on."
  • End the letter with another urging that they oppose HR 5034.
  • Include your name and address in the letter.

For what it is worth, the wholesalers are using the argument that they are in a better position to prevent underage drinking as opposed to a courier service like UPS or FedEx. As someone who has received a decent amount of wine via those two companies, I can assure you that they make you sign for the package once they assess you are over 21. I am way past 21 but am fortunate to look much younger and was asked for my license less than a month ago. I'm not complaining, but I also do not think the 18-year old check-out clerk at your local supermarket is going to be more vigilant than UPS or FedEx given how much $$$ they would lose if they were busted leaving alcohol without an adult over the age of 21 signing for it.

Please contact your elected officials and tell them NOT to vote for HR 5034 and spread the word to your family and friends.

Thanks again for your support and don't forget to flash those PURPLE TEETH!

NOTE: For past Purple Teeth Cellars blog entries on shipping, particularly to New Jersey, please click here.

Labels:

posted by Jill @ 2:56 PM        2 Comments


Thursday, April 1, 2010

New Jersey update on wine shipping - help!

Given that Mrs. PurpleTeeth has lots of family and friends in the northeast from growing up there and spending the 1st 31 years of her life there, shipping to NJ is pretty important to Purple Teeth Cellars. So naturally we have been keenly monitoring what has been going on in the Garden State with respect to direct-to-consumer wine shipping.

We found this great blog called http://www.uncorknj.com/ and reached out to them to get the latest on what is left to be done. Since we're kindred spirits, they responded rather quickly on how you can help make direct-to-consumer wine shipping a reality in NJ.

Note that while this blog entry refers to NJ, most states are impacted on some level with direct-to-consumer wine shipping. So get involved and call your elected representatives to let them know that consumer choice should reign supreme!

Currently, a bill to permit the direct shipping of wine to New Jersey residents has been cleared by the state Senate, and has been referred to an Assembly committee. We are in the process of working to have the direct shipping bill heard in an Assembly committee. From there, the bill would be voted on by the entire General Assembly, and upon a successful vote, the bill would be presented to the Governor for a signature.

The wholesalers in New Jersey are fighting this issue very hard. We need you to contact your legislators in support of the direct shipping bill (S766/A1702). We also need you to talk to your friends, neighbors, relatives, colleagues to take similar action! UnCorkNJ has set up a fast and easy way for someone to contact their legislators.

Please visit http://capwiz.com/cpanj/issues/alert/?alertid=12317661 and you will be presented with a page that contains a message of support and a few areas to enter information. This message is then sent directly to their elected officials, and the members of the Assembly Regulatory Oversight & Gaming Committee (the committee that has the direct shipping bill).

For those of your friends who do not live in New Jersey and still want to take action, the following are email addresses you can use to send your own messages of support, or a copy of the message we have drafted. Our message is found when following the above link, or we would be happy to send it to you via the body of an email.

Assembly Speaker: Assemblywoman Sheila Oliver – AswOliver@njleg.org
Majority Leader: Assemblyman Joseph Cryan – AsmCryan@njleg.org
Assembly Regulatory Oversight & Gaming Committee Chairman: (FYI, Assemblyman Burzichelli is one of the bills sponsors) Assemblyman John Burzichelli – AsmBurzichelli@njlejhjhg.org

While you're at it, call the new Governor of NJ too!

Thanks again for your support and don't forget to flash those PURPLE TEETH!

Labels:

posted by Jill @ 9:42 PM        0 Comments