Direct Wine Shipment Laws: A Prohibition Style Hangover
Watch for Angry Grapes!
Yes Enthusiasts! We are nerding out about wine laws! So, why care about State Shipping laws? Well, if you have ever wanted to order wine from a favorite winery, these laws likely affect you.
In 2011, Maryland passed a law that allowed winemakers to ship wine directly to customers (with some restrictions). I was in Maryland at the time and remember the political uproar. When the law finally passed, I figured much of the direct shipping conflict was over. But, there are still several states that prohibit direct shipment and others that place significant restrictions on the process.
So what is this conflict all about?
Naturally, all alcohol beverage laws are traced back to the Temperance Movement, Prohibition and the 21st Amendment that overturned Prohibition. The 21st Amendment, plainly stated, places significant (and arguably all) power to regulate alcohol beverage laws with the States. Some argue that this power even supersedes Federal power. Generally, however, the States simply have the power to regulate alcohol beverage laws within their borders, while the Commerce Clause allows the federal government to regular inter-state commerce.
The traditional system is a "three-tier system." This means all alcoholic beverages are sold from the producer --> to a state licensed distributor --> then to a state licensed retailer. The direct shipment option aims to cut out the middle man and allow customers to buy wine directly from producers. The states that still prohibit direct wine shipments are highlighted in the map below.
Thankfully, the Feds have not been completely silent during this fight. Many States had begun reciprocity deals, where direct wine shipment would be allowed only between States who mutually agreed to allow wine shipments from their respective States. In 2005, the
Graholm v. Heald
ruling held that under the Commerce Clause, States may not discriminate against out-of-state wineries by imposing barriers. This ruling encouraged the majority of States to switch to direct shipment, but as you notice above, there are several holdouts. Unfortunately, if your state is a holdout, you will likely have to stick with the three-tier system.
(Or you could consider moving?!) Just kidding! Here's to hoping the holdout States open up to direct shipping. There is great wine out there and customers should have access to it!
Cheers!