Free the Grapes: Majority of States Allow Regulated Wine Direct Shipping, But Wine Wholesalers Continue ''Chicken Little'' Strategy.

NAPA, Calif. -- The wine wholesaler cartel today trotted out a tired argument already dismissed by the U.S. Supreme Court, the Federal Trade Commission, and state alcohol regulators, according to Free the Grapes!, a national grassroots coalition whose goal is to ensure consumer choice in wine.

"The intent of the Wine & Spirits Wholesalers of America's 'survey' on underage access is to deflect attention from their real motivation: economic protectionism," said Jeremy Benson, executive director of Free the Grapes! "Over the past 30 years, the wholesale cartel has consolidated from 11,000 wholesalers to an oligopoly of two or three per state. The wholesalers, not consumers, have been deciding which wines are available. But now, the courts, Federal Trade Commission, and state legislatures are supporting consumer choice and responding with reasonable regulations and controls," he added.

While the WSWA's press release quoted that the "survey" results showed a "dangerous trend," USA TODAY was unconvinced. The newspaper reported yesterday that "It's unclear how many teens were buying alcohol online before the court's ruling, but the TRU survey suggests such purchases are rare."

Here are the facts:

--Fact: Thirty-three states now allow interstate, winery-to-consumer direct shipments, and several more are in the process of creating the legal mechanisms to do so. No state has ever repealed pro direct shipping legislation based on non-compliance, including underage access. See www.wineinstitute.org for a list of the state laws.

--Fact: The Federal Trade Commission rebuked the underage access argument in its survey of alcohol regulators in 11 states that allow direct shipments, concluding that states with procedural safeguards against shipments to minors report "few or no problems." Click the following link to read a summary of the FTC's July 2003 study, "Possible Anticompetitive Barriers to E-commerce: Wine": http://www.ftc.gov/opa/2003/07/wine.htm

--Fact: The U.S. Supreme Court's 2005 ruling in Granholm v. Heald dismissed the underage access red herring, and favored a level playing field and consumer choice in wine via wineries and retailers.

--Fact: The wine industry supports the enforcement mechanisms available to states in the event of an alleged illegal shipment. The "21st Amendment Enforcement Act" was supported by the WSWA and signed into law in October 2000, allowing state Attorneys General to access federal courts to pursue litigation for alleged violations of state law regulating alcohol shipping. No winery or retailer has ever been prosecuted under the 21st Amendment Enforcement Act.

Additionally, alleged violations of state laws governing alcohol shipments can be reported by any state to the Trade & Tax Bureau for investigation. Penalties for infractions can include revocation of a winery's basic permit to produce wine. Finally, the wine industry's model direct shipping bill for wine stipulates that the winery or retailer holding a direct shipping license has consented to the jurisdiction of the state issuing the license, and the state's courts concerning enforcement of the law. A copy of the model bill is located at http://www.freethegrapes.org/wineries.html#model

"Especially now that the courts and capitols support consumer choice in wine, and many more enforcement tools are available, states should be working to ensure that online sellers are complying with all laws," said Jeremy Benson, executive director, Free the Grapes! "Common sense and the actual experience of state regulators demonstrate that direct shipping is not the common means for illegal youth access to purchase wine, beer or spirits. Underage access is a serious issue that won't be solved by special interest surveys created only to protect wholesalers' turf, and geared to target a proven, legal sales channel for adults," he added.

For more information visit www.pointclickthink.com.