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Small Winery Leads Fight Against Alcohol Shipment Laws
April 14, 2005

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News Summary

A small winery in Virginia is at the heart of a federal court challenge to a web of state laws that bar vintners and other alcoholic-beverage companies from shipping their products directly to consumers, the Washington Post reported April 6.

Swedenburg Estate Vineyard in Loudoun County wants to be able to ship its roses, rieslings, and other wines to out-of-state customers, including those who visit the Virginia tasting room but don't want to have to carry home a case of wine. But 24 states ban such shipments, and others have unique local laws that present barriers to direct shipments. New York, for example, allows in-state wineries to ship, but out-of-state wineries would have to set up a New York office in order to mail their products to New Yorkers.

"When it comes right down to it, people like to taste different wines from different places. And I consider wine an agricultural product that should be able to pass over state lines," said winery owner Juanita Swedenburg.

The shipment laws have been on the books since Prohibition, but enforcement was stepped up in 2000, when President Clinton signed a law giving federal courts more power in such cases, including sales made via the Internet.

Swedenburg's case against New York's three-tiered distribution system -- which requires alcoholic beverages to be sold via a wholesaler and retailer -- was rejected by the U.S. Court of Appeals for the 2nd Circuit, but is now on appeal with the U.S. Supreme Court. Opponents say the laws are needed to prevent sales to underage drinkers and for tax-collection purposes.

Gordon W. Murchie, executive director of the Virginia Wineries Association, said that while his organization supports efforts to ease sales restrictions, he predicted that the Swedenburg case "will not open a floodgate, because it costs money to ship wine. You can get a nice bottle of comparable wine at the grocery store. But you may get some wine enthusiasts buying wine for their cellar, and they will be paying for it."

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