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1 1 8 V I N E YA R D & W I N E RY M A N A G E M E N T | M a r - A p r 2 015 w w w. v w m m e d i a . c o m END POST TYLER COLMAN ew York City is the best wine city on the planet. There, I've said it. Yet Gotham is also under threat. London easily has a shot at the world's wine heavyweight title. With centuries of importing wine, London developed many shops, and even the modern wine auction market, with a wide array of choices from around the world. Paris, no doubt, should be consid- ered a finalist, since it is the capital of the country that produces what many say are the finest wines in the world. While some of the wines offered at shops and restaurants are superlative, they do tend to resem- ble one another in that they are mostly … French. San Francisco, with an abun- dance of local options, has a decent shot at the title, too. But ultimately, it is NYC that takes the crown. Its sommeliers are not only among the best and most dynamic in the world, but, as I argued recently in this space, are assuming a larger role as thought leaders in the wine world, even trumping critics in many cases. And with no chain retailers allowed in the state, the wine sales landscape is studded with mostly small shops. The bulletproof glass of the bodegas has given way to gor- geous store layouts, such as the wavy wall of wine at Crush Wine & Spirits and the sleek modernism of Vintry Fine Wines. Shop staffs are knowledgeable and respected at places like Chambers Street Wines, which has gained an international reputation for occupy- ing a place in the global mindshare that is much larger than its store footprint. Across the city, if you're looking for a specific wine, it's pretty hard to imagine that you can't find it. Clearly, NYC has the ability to act as a magnet for capital, tourists and the global elite. And also for laws. Wine laws. And those are threaten- ing to change. The New York State Liquor Authority (SLA) sets the policy for wine distribution and sales, includ- ing the ban on wine sales in super- markets, food sales in wine stores, and the prohibition of owning mul- tiple licenses. Yet the regulatory backdrop may be changed in sev- eral ways. First, the SLA is threatening to revoke the license of Empire Wine, a retailer in Albany, for shipping wine out of state. Got it? The SLA is "defending" the rights of consum- ers in other states. New York has no laws banning interstate shipments, so Empire Wine has sued the SLA for overstepping its bounds. A judge threw out the case, saying that the regulatory process hadn't yet been exhausted. The next step is a revo- cation hearing, which, if it goes against the retailer, presumably would have the judge hear the case. However it ends up for Empire, it is a bad precedent for other NY shops that seek to ship wine out of state. Second, the SLA is making it dif- ficult for retailers to pre-sell wine. While an exception was created for Bordeaux futures, shops will soon have to have wine in stock to offer to customers, even those purchasing online. As such, a free float for retailers (charging the consumer credit card before having to pay for the wine) will dry up. For some, even if it is not is their life- blood, it's their modus operandi. Third, the SLA is contemplating a change to require distributors to have their wines remain "at rest" in New York for 24 hours prior to deliv- ery to shops and restaurants. This is problematic, since many of the small- and mid-sized distributors use warehouses in New Jersey to make deliveries to the City. Finally, the idea of a "primary source" regulation has been floating around the state. Such a bill would prevent stores and restaurants from dipping into the private cellars of col- lectors for rare bottles. They would have to source the wines exclusively from wholesalers. This would be cumbersome and rob New York of some of its most exciting bottles. None of these regulatory changes will knock NYC off its pedestal. But if they all come to pass, it would make life difficult for retailers, res- taurateurs and smaller distributors, perhaps sending some to friendlier jurisdictions or out of business. The effects for the wine industry would be far and wide. I hope it won't come to that. Tyler Colman, author of the wine blog Dr. Vino, teaches wine class- es at New York University and the University of Chicago, and wrote t h e b o o k " W i n e P o l i t i c s : H o w Governments, Environmentalists, Mobsters, and Critics Influence the Wines We Drink." Comments? Please e-mail us at feedback@vwmmedia.com. (Opinions expressed in this column do not necessarily reflect those of Vineyard & Winery Management.) NYC Under Threat