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Thursday, September 11, 2008

Law - "Amazon gets into wine"

This should be interesting. The Wall Street Journal has this brief story today, by Mylene Mangalindan and Julia Flynn Siler. Some quotes:

A wine trade organization said Web retailer Amazon.com Inc. plans to start selling wine from Napa Valley and other U.S. regions on its Web site later this year.

An Amazon spokesman declined comment. But Terry Hall, communications director of Napa Valley Vintners, said the Seattle company will begin selling wine at the end of September or the beginning of October from about 26 states. Napa Valley Vintners, which boasts 315 members, is holding workshops for its members to learn about selling through Amazon, Mr. Hall said.

"It's a very exciting time," Mr. Hall said. "The world's largest online retailer is saying that wine is important -- that's very exciting for American consumers." * * *

Regulations governing the shipment of wine vary state-to-state, complicating interstate distribution. The 2005 Supreme Court ruling struck down bans on out-of-state wine shipment in New York and Michigan, making it easier for wineries to sell directly to consumers.

Amazon has been working on selling wine through its Web site for some time, Mr. Hall said. The online retailer will be working with New Vine Logistics, a Napa-based company that handles wine fulfillment, to ship to various states, he said.

Alexandria Sage reports in the Washington Post:
SAN FRANCISCO (Reuters) - Amazon.com (AMZN.O), the largest global online retailer, plans to start selling U.S.-produced wine on its website within the United States by early October, wine industry insiders said on Wednesday.

Napa Valley Vintners, a nonprofit group representing 315 vintners in the famous California wine-producing region, has already begun to set up workshops for wineries interested in selling through the retail giant, said Terry Hall, communications director for the group.

"They have been working for a while on this wine project. Now they are signing up the wineries," Hall told Reuters. "They're fast-tracking it right now."

An Amazon spokeswoman declined to comment.

Seattle-based Amazon is looking to sell wine in approximately 26 states and wine sold on its site will come from all regions of the country, Hall said. * * *

To avoid the confusing legal issues over the interstate sale of wine that vary from state to state, Amazon will be working with New Vine Logistics, a Napa, California-based company dealing in wine fulfillment that can deliver to up to 45 states.

"Amazon is outsourcing to New Vine the logistics of its wine direct business to make sure it's being done properly and legally," Insel said.

Confusion over online wine sales have continued despite a 2005 U.S. Supreme Court decision that ruled states could not discriminate against out-of-state wineries. A group called "Free the Grapes" has been working to streamline legislation and open new states to direct-to-consumer wine shipping. * * *

Industry insiders said Amazon's entry into the wine market would be a good counterpoint to the shrinking pool of distributors amid consolidation in their industry.

"The good news is it (Amazon selling wine) puts some big muscle behind direct-to-consumer so consumers of wine should benefit," Hall said.

The big question? Will Indiana producers and consumers be able to participate, particularly given the August 7th 7th Circuit opinion in Baude v. Heath?

New Vine Logistics website says "Legal access to 45 states" but no details.

Posted by Marcia Oddi on September 11, 2008 02:40 PM
Posted to General Law Related