Decanter World Wine AwardsNew Jersey waits on direct shipping ruling
- Tuesday 9 August 2011
- Comments (4)
New Jersey law currently prohibits direct shipping from outside the state and there have been numerous efforts to alter the law since 2003.
The latest court ruling has given lawmakers more time to come to a resolution after failing to pass a bill earlier in the year that would have allowed wineries to keep their tasting rooms open and allow direct shipping both in and out of the state.
It is another blow for those campaigning for direct shipping in New Jersey but they hope there will be a resolution before March. Tom Consentino, spokesman for Uncork NJ, explained a ‘powerful lobby’ was preventing a direct shipping ruling.
'Many New Jersey wineries are too small and do not produce enough product to sell directly through wholesalers. They need to be able to market their products directly to retail customers as the only way to sell their products,' he told Decanter.com.
'The New Jersey wineries can’t ship out of the state either, he added. 'The state’s largest winery ships to China but it can’t ship across the bridge to New York or Maryland. It’s ludicrous.'
However Assembly Majority Leader Joseph Crayan opposes direct shipping, claiming it will have a negative impact on retail and wholesale outlets in New Jersey. In a statement, he said, ‘The three-tier system has led to 60,000 retail jobs in our state and if we were to allow direct shipping, those New Jersey jobs would potentially all but disappear.’
The state is not issuing alcohol licenses to new wineries until the matter is resolved, leaving at least 15 wineries unable to sell their wine.
There are currently around 50 licensed wineries in New Jersey and it is the seventh largest wine producing state in the US.
Have your say!
Jay
August 26 20:47
i concur that direct shipping does not kill retail business and will not impose huge financial losses for retailers in NJ. your average wine consumer which makes up over 90% of the customer base, does not buy wine online & has no interest in having a case of BV or Sterling cabernet shipped to them when they can go to their local store & get it much quicker & cheaper! Consumers generally direct ship when wines are not available in their states. i am a wine manager for a store and we are still in business in a state that allows for direct shipping. It's very interesting as the gentleman points out that the supreme court decision has not been upheld by states. And i find it more interesting that no attorney has challenged it. Oh well, that's America for you!
PS- and yes the general assembly speaker's comments are pretty stupid. But hey, that's probably why he's in politics to begin with!
Max
August 10 15:40
What I find incredible, is that the Supreme Court of the US ruled these practices unconstitutional a long time ago and the states have not obeyed. In essence, making the Supreme Court meaningless. I think all the excuses about jobs being lost are just the product of paid lobby and self interest. All those jobs are paid by each of New Jersey’s habitants when they buy products inflated by the three tier system that only increases the cost and gives the system absolute control over what is sold in the state. In a country that was founded over the right of free enterprise and to buy from whomever you please, the assembly leader has forgotten the roots of the American Revolution, the Boston tea party.
Dave
August 10 15:13
Sorry to be negative but Joseph Crayan's quote has to be one of the dumest statements I have ever heard. The NJ wholesale and retail business will shutdown because direct shipping is allowed? That has to be a joke right?
Max
August 10 15:07
What I find incredible, is that the Supreme Court of the US ruled these practices unconstitutional a long time ago and the states have not obeyed. In essence, making the Supreme Court meaningless. I think all the excuses about jobs being lost are just the product of paid lobby and self interest. All those jobs are paid by each of New Jersey’s habitants when they buy products inflated by the three tier system that only increases the cost and gives the system absolute control over what is sold in the state. In a country that was founded over the right of free enterprise and to buy from whomever you please, the assembly leader has forgotten the roots of the American revolution, the Boston tea party.