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Florida Wine Running into Brick Walls?

Posted on April 16th, 2007 by Jake

Florida Brick WallIn recent news, there is a legal battle (as usual) with big distributors and others, fighting to eliminate direct sales in Florida. The newest proposal is saying that direct sales will be limited only to those wineries who produce less than 250,000 gallons of wine per year. Now how exactly does that figure work for a State that records about 25,000 gallons of wines shipped direct (all direct statistics) for all of last year, though this doesn’t include those shipped by in-state wineries. The reports also show that wholesalers/distributors handled about 25,000 gallons of domestic and about 5,000 gallons of imported wine per month. So direct sales have taken less than 10% of the business…so far. Distributors are losing all of that profit, and where is it going…back into the pockets of the wineries who worked so hard to produce the fabulous wines being purchased?

So how is this new law hurting the majority of the wineries that are shipping into Florida. After all, if you are a winery producing over 250,000 gallons a year (100,000 cases), odds are you have a distributor who is taking care of you, and its probably more convenient for the consumer to go buy it at a grocery store anyway. Does somebody really want to wait on a bottle of Kendall Jackson? The concept of direct sales is mostly beneficial to those smaller production wineries that aren’t a staple brand for the distributor.

Regardless of who may benefit more, the fact remains that Florida, one of the nations leading wine consumers, is about to take a step backwards, and if you live in Florida, you should be concerned. Go to FreetheGrapes.org and personalize a letter to protest the legislation. It takes just a second, and if you don’t do it, don’t complain when your missing out on all the fun of these wines that can only be found direct.

Tags: Direct Sales, Florida, Marketing, News

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Posted in Marketing, News, Thoughts, Wine | View Comments

  • http://www.wine-girl.net Michelle

    Our Ky laws aren’t much better. (http://www.wine-girl.net/2007/03/kentucky_and_wi.html) It’s convoluted and confusing, with dry counties, wet counties, wet cities in dry counties, and so forth. Direct shipping is limited to those wineries who produce less than 50,000 gallons annually. It’s frustrating and believe me, I’ve spent my time at Free the Grapes. Ours definitely need some freedom!

  • http://www.wine-girl.net Michelle

    Our Ky laws aren’t much better. (http://www.wine-girl.net/2007/03/kentucky_and_wi.html) It’s convoluted and confusing, with dry counties, wet counties, wet cities in dry counties, and so forth. Direct shipping is limited to those wineries who produce less than 50,000 gallons annually. It’s frustrating and believe me, I’ve spent my time at Free the Grapes. Ours definitely need some freedom!

  • http://www.grapethinking.com Ruarri

    Near 3 centuries ago, Adam Smith, fed up with petty interventionism, wrote the book that would make England an economic superpower ‘The Wealth of Nations’ and in it he writes: “consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer.” All these laws serve no one but the distributor and are a hindrance at both ends of the supply chain. Grape Thinking is all about serving the producer, the retailer and the consumer – because they are the people who care most about and have a passion for wine… distributors and state liquor laws only care for profit.

  • http://www.grapethinking.com Ruarri

    Near 3 centuries ago, Adam Smith, fed up with petty interventionism, wrote the book that would make England an economic superpower ‘The Wealth of Nations’ and in it he writes: “consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer.” All these laws serve no one but the distributor and are a hindrance at both ends of the supply chain. Grape Thinking is all about serving the producer, the retailer and the consumer – because they are the people who care most about and have a passion for wine… distributors and state liquor laws only care for profit.

  • Greg

    Sometimes the retailers only care about profit as well. To get the retailer to sell a wine many distributors and producers have to work on razor thin margins so the retailer can make all the profits…sometimes as much as 100% mark up.The consumer’s choice is limited to the brands that have the financial ability to pay huge incentives in profit margins and other stuff to the retailers.

    The consumer does not win in either case. They do not get the best wines, their choices are limited, and they do not get reduced retails. In this case only the retailer is making money.

    It is a great time to be a wine retailer because they can demand a certain price and will get it. Then they do not pass on the savings to the consumer…they pocket the extra margin for themselves.

  • Greg

    Sometimes the retailers only care about profit as well. To get the retailer to sell a wine many distributors and producers have to work on razor thin margins so the retailer can make all the profits…sometimes as much as 100% mark up.The consumer’s choice is limited to the brands that have the financial ability to pay huge incentives in profit margins and other stuff to the retailers.

    The consumer does not win in either case. They do not get the best wines, their choices are limited, and they do not get reduced retails. In this case only the retailer is making money.

    It is a great time to be a wine retailer because they can demand a certain price and will get it. Then they do not pass on the savings to the consumer…they pocket the extra margin for themselves.

  • http://allthewines.wordpress.com/2007/10/20/florida-wine-running-into-brick-walls/ Florida Wine Running into Brick Walls « Wines for all

    [...] read more | digg story [...]

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