Alcohol Wholesalers Work Quietly to Limit Interstate Sales of Beer and Wine

Opponents of the bill maintain that it restricts competition and would lead to an increase in prices while weakening small microbrewers and winemakers.

August 17, 2010

WASHINGTON ?" Distributors of alcoholic beverages have been working quietly to urge passage of a federal law that would allow states to block interstate sales of wine and beer to their residents, Lubbock Online reports.

A pending House bill would allow states more authority in regulating alcohol sales, requiring those challenging the law to prove that it violates federal law. It would, in effect, supersede recent court rulings that have struck down limits on interstate alcohol sales.

"It??s the cumulative effect of all these lawsuits, and the confusion," said Paul Pisano, a vice president at the National Beer Wholesalers Association, which proposed the legislation in the spring and backs a lobbying campaign. "We??re asking to make sure that states aren??t having their hands tied when they??re trying to defend their alcohol laws."

Opponents of the bill maintain that it restricts competition and will lead to an increase in alcohol prices as well as weaken small microbrewers and winemakers.

South Coast Winery in Temecula, California, for instance, attributes nearly 30 percent of its wine sales to interstate sales, a number that is certain to drop if limits are placed on interstate sales.

"It??s very important for small wineries, especially, to be able to have these wine clubs because it??s our best vehicle for dealing direct with the public," said owner Jim Carter.
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