That noise you just heard was HR 5034 dying

The wine world has been in a huge uproar over HR 5034, the so-called anti-direct shipping bill. The bill, backed by the biggest beer, wine and spirits distributors, would have tightened the three-tier system to eliminate exceptions carved out by Congress and the Supreme Court -- like direct shipping.

As the erudite Tom Johnson has noted at Louisville Juice, there was very little chance of HR 5034 ever being passed, regardless of the Winestream Media's panic. Would that they spend so much effort educating the American public about wine. But today's news -- that the trade groups that represent beer, wine, and spirits have come out in opposition to the bill -- kills whatever life was left in the proposal. This means Gallo, Diageo, and Constellation, companies that are even bigger that the distributors, oppose the bill. And we know how much money talks.

A link to the joint letter the groups sent to Congress: Download Joint Producers Letter HR 5034

direct shipping, three tier system, HR 5034

Comments

[Alfonso]

the real coup by the WSWA was in getting Winestream Media whipped into a frenzy - putting them on the defense - as you know many bloggers dont really dig into the facts, they react and post, aiming for that "gotcha" post to drive up their traffic.

It probably wasn't intentional but it was a smart strategy that kept the conversation in their control. Brilliant...

[Jeff Siegel]

I'll do you one better, Alfonso. The real coup was focusing attention on the federal level, while the WSWA does a dipsy dodle and works on state legislatures to get what it wants. And, as I'm sure you noticed, the letter the trade groups sent said they were happy with the system the way it was, allowing states to make their own laws. So how can they object when the wholesalers get the states to tighten up the rules?

[Tom Wark]

First, it's hardly just bloggers who have gotten the facts wrong. Wholesalers and politicians both have gotten the facts wrong about H.R. 5034 and they have done so regularly.

It should also be noted that Wholesalers give exponentially more money to congress than all the producer of beer, wine and spirits combined. So, if money talks louder than letters....I'm just saying.

Finally, arguing that they are happy with the system the way it is is hardly an endorsement of wholesaler proposed legislation that more often than not erects barriers to consumer access to wine and gives the wholesale tier advantage they don't deserve, but that keeps them in the middle of a transaction they quite often are not needed for.

One more thing to consider. If HR 5034 fails, it will be a severe defeat for the wholesalers who have expended tremendous political energy on moving it forward. They'll get their hearing too. But do they really want it? Do they want their self-serving, disingenuous arguments laid bare for all to see?

Tom Wark

[Alfonso]

Spin it, Tom.

[Tom Wark]

Come On, Al. YOu and I both know you can do better than that.

[Alfonso]

Tom, maybe it was the dizziness that got me.

Both your side and the WSWA have "interests" to protect.

Folks tire of the good vs evil doomsday scenarios. We have bigger evils to worry about, from petroleum to pharmacy to the health care industries.

Knock yourself out.

[Tom Wark]

They may tire of these scenarios, but there's no getting around the fact that, again, it is the wholesalers and no other part of the industry, that is attempting to change the order of things to benefit them.

It does get old.

But, let me know when it's ok to stop thinking about Petroleum and healthcare and again start defending my industry and consumers from those who want to shove us to the back of the bus.

[Alfonso]

Tom:

no different than what you and your contingent is trying to do, " attempting to change the order of things to benefit" from it...

what would work better if everyone in the bus would get together and work it out.

Maybe some day, amigo...