Issue link: https://read.dmtmag.com/i/45785
Hey, Big Spenders A report that alcohol wholesalers are spending millions on state and federal election campaigns is par- ticularly timely, as wholesalers once again ask Congress for new rules on alcohol sales. The report by the Special- ty Wine Retailers Association (SWRA) found that wholesalers spent $82 million on state and fed- eral campaign contributions and federal lobbying during the past three election cycles between 2005 and 2010. That's not illegal, but the totals far exceed the rest of the industry. For instance, for the last three elec- tion cycles, wholesalers gave $58.2 million in state cam- paign contributions, compared to $12.8 million for brewers, $13.8 million for win- eries/distilleries and $3.6 million for retail- ers, according to the figures, which were obtained from the National Institute on Money and State Politics and the Cen- ter for Responsive Politics. "You have to ask yourself, `What is it that makes wholesal- ers willing to contrib- ute so much more?' and the answer is they have much more to protect," said Tom Wark of the SWRA, which represents wine retailers and associated businesses. He noted that data weren't available for money spent lobbying state leg- islatures, which likely would have pushed totals higher. A big issue for the industry, of By Michelle Locke NEWS FLASH retailers to direct-ship, an issue that concerns SWRA members. The wholesaler-backed bill cur- rently before Congress is H.R. 1161. Known as the Community Alcohol Regulatory Effectiveness (CARE) Act of 2011, the bill takes up where the failed H.R. 5034 left off. Supporters say it's not intended to prevent direct shipping and will only protect the states' right to reg- ulate alcohol. "Ultimately, this leg- islation is about who should make decisions regarding alcohol regu- lation, not what those decisions should be," Craig Purser, president of the National Beer Wholesalers Association, said in a statement posted on the group's website. But opponents, who include the Brewers Asso- ciation, the Distilled Spirits Council of the United States and the Wine Insti- tute, say the legisla- tion is unnecessary and would al low states to enact pro- tectionist laws. The National Beer Tom Wark of the Specialty Wine Retailers Association suspects there's a good rea- son wine wholesalers spend so much money on campaign contributions. Wholesalers Associa- tion and the Wine & Spirits Wholesalers of America, which together spent $8.8 million on federal lob- bying over the past three election cycles according to the SWRA report, did not respond to requests for comment by Vineyard & Winery Management. The U.S. Supreme Court has out- course, is the three-tier distribution system, set up after Prohibition and which ensures wholesalers a piece of alcohol sales. Thirty-eight states now allow some form of direct ship- ping from winery to consumer, but 12 continue to ban the practice. And only about a dozen states allow 12 VINEYARD & WINERY MANAGEMENT NOV - DEC 2011 lawed discriminatory laws, such as allowing in-state wineries to ship directly to consumers while ban- ning direct shipping from out-of- state-wineries. But H.R. 1161 could protect other types of laws that, for instance, require wineries to have an in-state presence to ship, or set caps on who can direct ship – with the cap set just high enough to cover all in-state wineries, said Tracy Genesen, a partner in the San Francisco law firm of Kirkland U.S. Wine Consumption Continues to Rise As the U.S. economy continues its slow recovery, the wine industry is poised to mark its 17th consecutive year of case gains. According to the Norwalk, Conn.-based Beverage Information Group's recently released 2011 Wine Handbook, overall wine consumption rose 2.1% to 303.1 million 9-liter cases in 2010. For details, visit www.bevinfostore.com. Ohio's First Wine Degree Two new associate degree programs designed to prepare students for work in Ohio's wine industry are being offered at Kent State University at Ashtabula. Through an affiliation with the Viticulture Enology Science and Technology Alliance (VESTA), these two-year programs in enology and viticulture are the state's first college degrees related to winemaking. $7.4 Million for Wine Science Center The Washington State Wine Commission has pledged $7.4 million over the next 10 years to support construction of the Wine Science Center at the Washington State University Tri-Cities campus in Richland. Funds will be generated through assessments levied on grape and wine production. The new facility will house the university's rapidly expanding viticulture and enology program. Free the Grapes! Celebrates Legislative Victories Napa, Calif.-based Free the Grapes! has released its latest legislative highlights: Maryland opened for winery shipping July 1, becoming the 38th legal state for winery shipments; New Mexico transitioned from a "reciprocal" to a permit state; and Florida remains open after wholesalers' fourth try at imposing a capacity cap failed. For updates see www.freethegrapes.org. For more industry news briefs, visit the News Flash page on V&WM's website: www.vwm-online.com. WWW.VWM-ONLINE.COM