The constitutional amendment ratified in 1933 to end Prohibition built a “wall” around states, giving them authority over internal alcohol sales and the ability to open doors to other states.
Got it, yep the privileges one has in California are enviable by most other state producers. Not many states provide the privileges that California wineries have of being able to direct to consumer, direct to trade, and to the wholesale tier as well. Of course it is only limited to wine in CA, the distilleries and breweries do not have the same privileges that California wineries experience. A simple leveling of the playing field and expansion of the successful CA system in other states would be great. Thank you for sharing.
You are not in CA is what I understand. Dealing with the wholesale system for distribution is not something that I envy. It is an archaic way of business that does nothing but increase prices in an increasingly competitive world. Would love to see it go away and create a level field for all producers.
While states rights can be frustrating, as in shipping directly to consumers, the US Constitution was built to give all states an equal voice in governance instead of being at the mercy of a runaway federal monstrosity. Our winery would love easy access to each state but we also have to respect the ability of each state to keep the feds at bay as the DC monolith attempts to run roughshod over the country.
Agreed, but this is about providing you the rights as a producer to sell your product. Instead of a federal monstrosity, we now have 50 individual ones when it comes to producers rights to sell their products. No state bans alcohol, they just control who does get to sell it, and for the most part that is an exclusive path for the wholesale channel, there is no fairness at the state level with that as a structure.
I agree as well but would rather have the states continue to have some autonomy instead of being one large mass where smaller states are at the mercy of the large populations. Supply channels have been opening slowly in the states that have been holding out and it seems that this will continue to be the direction in which we are going. Most states have a DTC option and, for us, the few that don't are not costing us any substantial sales. That said, we are a very small producer, and I understand the frustration of the larger producers who have to deal with the wholesalers.
without a doubt, the 3T channel has been and continues to be detrimental to our winery growth and financial health. Even with a few wonderful partners. It just doesn’t make any sense these days for small producers like us to sell wine through this channel.
Yes, spot on. We have to as an industry stop talking about the 3T process but refer to it as the wholesale channel and make sure to always refer to the three channels, and then work on showing how the other two channels are legitimate and work just as well as the wholesale channel. DTT works in a number of states already, we just need to build upon this. Stop the wholesale bullying.
Yes.
Got it, yep the privileges one has in California are enviable by most other state producers. Not many states provide the privileges that California wineries have of being able to direct to consumer, direct to trade, and to the wholesale tier as well. Of course it is only limited to wine in CA, the distilleries and breweries do not have the same privileges that California wineries experience. A simple leveling of the playing field and expansion of the successful CA system in other states would be great. Thank you for sharing.
You are not in CA is what I understand. Dealing with the wholesale system for distribution is not something that I envy. It is an archaic way of business that does nothing but increase prices in an increasingly competitive world. Would love to see it go away and create a level field for all producers.
While states rights can be frustrating, as in shipping directly to consumers, the US Constitution was built to give all states an equal voice in governance instead of being at the mercy of a runaway federal monstrosity. Our winery would love easy access to each state but we also have to respect the ability of each state to keep the feds at bay as the DC monolith attempts to run roughshod over the country.
Agreed, but this is about providing you the rights as a producer to sell your product. Instead of a federal monstrosity, we now have 50 individual ones when it comes to producers rights to sell their products. No state bans alcohol, they just control who does get to sell it, and for the most part that is an exclusive path for the wholesale channel, there is no fairness at the state level with that as a structure.
I agree as well but would rather have the states continue to have some autonomy instead of being one large mass where smaller states are at the mercy of the large populations. Supply channels have been opening slowly in the states that have been holding out and it seems that this will continue to be the direction in which we are going. Most states have a DTC option and, for us, the few that don't are not costing us any substantial sales. That said, we are a very small producer, and I understand the frustration of the larger producers who have to deal with the wholesalers.
Joe, is your winery based in California?
without a doubt, the 3T channel has been and continues to be detrimental to our winery growth and financial health. Even with a few wonderful partners. It just doesn’t make any sense these days for small producers like us to sell wine through this channel.
Yes, spot on. We have to as an industry stop talking about the 3T process but refer to it as the wholesale channel and make sure to always refer to the three channels, and then work on showing how the other two channels are legitimate and work just as well as the wholesale channel. DTT works in a number of states already, we just need to build upon this. Stop the wholesale bullying.