NAWR releases groundbreaking White Paper on interstate wine retailer shipping
A comprehensive analysis offers framework for effective state regulation
The National Association of Wine Retailers (NAWR) has published a pioneering white paper titled "Interstate Retailer Wine Shipping: A Primer for Lawmakers, Regulators and Stakeholders." This document provides an in-depth examination of the current landscape of interstate wine retailer shipping and highlights obstacles that limit consumer access to a vast selection of wines and impede state revenue collection.
Over the past 25 years, consumer preferences have shifted significantly toward online shopping, with efficient interstate delivery systems becoming the norm. Despite this trend, many states have imposed restrictions on online wine purchases and deliveries, often to protect local retailers and wholesalers.
Currently, 37 states prohibit consumers from receiving shipments from out-of-state wine retailers, thereby restricting access to numerous unique wines available only through select retailers nationwide. Only 13 states permit such interstate wine shipments. These states are California, Connecticut, Florida, Louisiana, Nebraska, Nevada, New Hampshire, North Dakota, Oregon, Virginia, West Virginia, Wyoming and the District of Columbia.
The NAWR white paper proposes a detailed framework for regulating out-of-state wine retailer shipments. This framework aims to uphold the principles of the traditional three-tier system, prevent underage access and enable state governments to capture significant tax revenues currently forfeited due to restrictive laws.
The white paper addresses key regulatory considerations, including jurisdictional authority, reciprocal versus permit-based systems, product and volume limitations, reporting requirements, taxation, and delivery protocols.
Tom Wark, Executive Director of NAWR, emphasized the importance of this initiative: "While NAWR vigorously advocates for legal reforms to allow interstate wine retail shipments, we also understand that lawmakers and many alcohol regulators may not have the background in nor exposure to the simple and effective means by which retailer shipments of wine to consumers can be regulated. The newly released white paper is the only comprehensive exploration of this important channel for wine distribution ever prepared for lawmakers, regulators, and stakeholders."
The white paper also addresses constitutional concerns, particularly the discriminatory nature of laws that permit in-state but prohibit out-of-state retailer shipments. Such protectionist measures are currently under legal scrutiny in seven states. The document advises lawmakers to avoid enacting laws restricting consumer access to legal products, as these can undermine state interests, the rule of law, and consumer rights.
–Taken from a press release.