Direct Shipment of Wine: Towards a Solution

WorldShipNet Solves Knotty Shipping Problem for Wineries

Portland, OR, May 22, 2003 - It seems every few days now we hear about new developments in legislation concerning the direct shipping of wine to consumers, though in reality not much seems to change. If it will take a Supreme Court decision to truly open up direct-to-consumer shipping of wine in this country, we may well be waiting a long time. As Ken Starr noted in his speech in Napa on May 9th, it will be a challenge just to get the case heard by the Supreme Court. Of the roughly 6,000 cases that are offered to the court every year, only 75 or so are actually heard. Regardless of whether the case ever makes it to the Supreme Court, however, it is important to know that there are effective solutions to the shipping problem already in place.

Current State of Affairs

Recent changes in various state laws may have some effect on direct shipping, but these few changes are unlikely to cause the chain reaction in other states that some have predicted. While some states such as Virginia have recently voted to allow direct shipment under certain conditions, other states like North Carolina seem to be moving in the opposite direction, and may soon prohibit even intrastate shipment.

The major opposition to direct shipping comes from wholesalers who maintain the distribution system works, and is necessary to preserve the integrity of the product. They complain that wineries are simply interested in cutting out the middleman to earn a higher percentage of the retail price. Several states have also pointed out that direct shipping would reduce important tax revenues, while providing minors easy access to alcohol.

Toward a Solution

WorldShipNet, an alliance of companies covering each of the three tiers, has developed a system that enables wine products to reach consumers in many non-reciprocal states. WorldShipNet is in fact the three-tier system, with a network of wholesalers and retailers across the country, though they are primarily focused on helping wineries connect directly to their own customers. They provide an efficient and legal system that routes wine through distributors and retailers directly to the consumer. Through WorldShipNet, consumers are now able to receive products unavailable at retail shops, highly-allocated products with very limited production, and even products available only at the winery itself.

For Oregon wineries shipping product through the WorldShipNet service, packages are consolidated at Oregon Wine Services and Storage in McMinnville, a 110,000 square foot refrigerated facility serving the entire northwest region. Wineries interested in more information should contact Jeff Meader, General Manager, at (503) 474-9800.

WorldShipNet is an effective solution to an old problem. WorldShipNet works within the existing system-not outside of it-yet still provides benefits that the existing system cannot. The states earn full excise and sales taxes on every transaction, wholesalers and retailers benefit from every sale, and consumers have access to a wider range of premium products, often at shipping rates lower than other wine shippers! To help prevent product from reaching minors, all packages require an adult signature. Most important, wineries can finally establish direct relationships with their own customers in major non-reciprocal states like NY, NJ, FL, OH, MI, and many others.

By using a system like WorldShipNet, wineries can focus more on making and selling great wine, and less on how they're going to get it to consumers.

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