Coalition for Free Trade in Licensed Beverages Prepares for Supreme Court Challenge.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Aug. 6, 2001

On Monday, The Coalition for Free Trade in Licensed Beverages announced that it is enhancing its legal team in preparation for a U.S. Supreme Court test of state laws that prohibit a winery from shipping wine directly to consumers in another state. A majority of states severely restrict or make such direct shipments unlawful and a few even make them felonies.

The Coalition works with lawyers in many states who are challenging these laws (on constitutional grounds.) Its board is composed of executives from wineries such as Robert Mondavi, Kendall Jackson, Cakebread, Joseph Phelps and Laurel Glen.

Acting CFT President Reed Foster, of Ravenswood Winery, believes CFT is now ready to meet this upcoming challenge. "As the wine industry's exclusive voice in direct shipping litigation, the Coalition for Free Trade is proud to selected a star team of legal experts to help vindicate the interests of wine consumers and wineries across the country, Foster said.

Recently named Legal Director of the Coalition, Tracy Genesen, a senior litigator at the Foley & Lardner law firm in Sacramento, said, "I am very pleased to be directing the legal effort on behalf of the wine industry. I am joined by an excellent team from the law firm of Pillsbury Winthrop and together our goal is to play a more prominent role in shaping the strategic and substantive direction of the nationwide direct shipping litigation effort."

A long time recognized expert in the wine industry, James Seff of Pillsbury Winthrop is also former chief counsel of the Wine Institute, the trade association of the California wine industry. Seff has led the Pillsbury Winthrop's Wine, Beer and Spirits Law Group since 1986. "Many wineries believe that as wine brands proliferate and the number of wholesale distributors contract, direct shipping has become an increasingly important key not only to their success but to their viability. Some, who are not large enough to capture a distributor's attention, have no other way to reach their out-of-state-consumers. And without direct shipping, those consumers have many fewer wines from which to choose." Seff said. Joining Seff is Kevin Fong, a Pillsbury Winthrop senior partner who is a recognize expert in appellate litigation and constitutional law.

Direct shipping cases are pending in several states. Of particular interest are cases in Florida and Virginia, which ultimately may provide the proper vehicles to obtain a definitive ruling from the U.S. Supreme Court.