From The Michigan Vineyard ...

From the Michigan Vineyard ...

Michigan wineries have been working the issue of direct shipping with the media, public and the Legislature since the US Supreme Court decision in Heald vs. Granholm.

The Court made it clear that the Michigan Legislature could legislate but not discriminate.The choice then for the Legislature is to “level up” (allow wineries from out-of-state to ship directly to Michigan consumers) or to “level down” (take away the existing rights of Michigan wineries to ship to Michigan consumers).  Continued shipments to consumers and retail accounts are only a fraction of one percent of the 7 million case Michigan wine market, but amount to an average of 30% of sales for small Michigan wineries.  Michigan consumers and overwhelming media editorials favor leveling up.Michigan Beer and Wine Wholesalers convinced the House to pass legislation allowing a very limited allowance of 500 cases of direct shipments for wineries.  The same legislation then took away Michigan wineries existing rights to sell directly to retail accounts.  This would be disastrous for the emerging Michigan wineries who have mustered support in the Senate for a negotiated settlement with the wholesalers.

Clearly the best interests for consumers and the wine industry rely on finding a negotiated solution that allows for limited, controllable and accountable direct shipments that are large enough to protect wineries and small enough to protect wholesalers.  The reality is clear, Michigan wholesalers only handle about 10% of the wines that are available in the U.S. - not enough to satisfy ardent wine consumers who travel to wineries out-of-state and want to purchase a wine that is unavailable when they return home.  Small and new wineries have a very difficult time finding a wholesaler to handle their products.  Until they become established, they must have open channels of sales to introduce their products.

Wholesalers on the other hand, provide real services to wineries once they have a foothold in a market. Wineries have demonstrated that they will use the wholesale network when it becomes efficient to do so.They should not be required to do so when it is not either efficient or affordable.  Direct shipments are not a threat to the wholesalers and do not deserve special protection in the Legislature.

Donald Coe
Managing Partner Blackstar Farms
President of WineMichigan

(an association of Michigan Wineries - WineMichigan is an organization dedicated to defending the rights of Michigan wineries to ship to Michigan consumers)

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