Free the Grapes! Says National Wine War Makes Sour Grapes of Impending Harvest.

NAPA VALLEY, Calif.--(BUSINESS WIRE)--Aug. 26, 1998--The following is a statement from Jeremy Benson, executive director of Free the Grapes!:

The tranquil, rolling vineyards of America's wineries belies the real crush of the impending 1998 grape harvest. A national wine war is pitting consumers -- who want wineries to ship directly to them -- against wine distributors, who are threatening winemakers with jail time if they bypass the middlemen.

"Consumer access to America's wines is being 'crushed' by state-sanctioned monopolies in wine distribution," said Jeremy Benson, executive director of Free the Grapes!, a coalition of organizations representing wineries in all 43 wine-producing states. "We believe distributors should augment, not replace, the current system and compete based on delivering service and value, not on creating felony laws and making threats," he added.

Although distributors cannot stock and sell every wine produced by the nation's 1,800 wineries, and only 5% of wine production is even likely to be shipped directly, distributors have pushed through legislation calling for the felony extradition of out-of-state winemakers if they ship to consumers in Florida, Georgia and Kentucky. Only 15 states currently have direct shipment provisions for consumers, and distributors are threatening to rescind those laws and introduce new felony legislation.

Additionally, distributors tied up Massachusetts' courts with a frivolous case naming FedEx and Internet wine retailer Virtual Vineyards. This case joins four other direct shipping cases that have been dismissed.

In response, Free the Grapes! is amassing a database of wine lovers who want to change laws that restrict free trade. (Consumers can request free information by emailing [e-mail].) Separately, several wineries are protesting the laws by restricting all sales activity and charitable donations in the "felony" states.

In addition to draconian legislation, the consolidation of distributorships restricts consumer choice. In 1963, the ratio of distributors to wineries was 29:1; in 1994 it was 2:1. The top 10 distributorships now control 44% of the market (source: Impact magazine). Since the majority of wineries are small, family-run operations without the revenue potential to interest large distributorships, they are shut out of markets. Distributors have also pushed legislation in Florida that virtually eliminates potential competition from smaller distributorships better suited for small-production wines and wineries.

Free the Grapes!, whose goal is to ensure consumer access to fine wine, was founded by American Vintners Association, Coalition for Free Trade in Licensed Beverages, Family Winemakers of California, Napa Valley Vintners Association and Wine Institute.

    CONTACT: Free the Grapes!
              Jeremy Benson, 707/254-9292
              [e-mail]