Legislation Protecting Wholesalers Follows in Numerous States
SACRAMENTO, Calif.--(Business Wire)--American alcohol distributors have contributed $50 Million to
state political campaigns between 2000 and 2006, according to a new
report issued today by the Specialty Wine Retailers Association. The
enormous amount of political contributions dwarfs that of any other
sector of the American alcohol industry as well as numerous other
groups and coincides with the enactment alcohol wholesaler-supported
policies in nearly every state that protect the wholesaler.
"Being one of the only industries in America that enjoys monopoly
advantages granted by the state, American alcohol wholesalers have a
great deal to protect," said Tom Wark, Executive Director of the
Specialty Wine Retailers Association. "Wholesalers have used their $50
million in political contributions to gain political access that
appears to have resulted in anti-consumer and protectionist laws being
passed across the country."
-- Between 2000 and 2006 Illinois alcohol wholesalers contributed
$5,731,776 to political campaigns. In 2007 the Illinois
Legislature passed a law that protected in-state alcohol
wholesalers by prohibiting Illinois consumers from continuing
to buy wine from out-of-state retailers. Wholesalers also
convinced the Illinois legislature to force large Illinois
wineries to sell only to state wholesalers, rather than direct
to retailers as they had been able to do.
-- Between 2000 and 2006 Texas alcohol wholesalers contributed
$6,976,104 to state political campaigns. The Texas Legislature
has passed prohibitions on out-of-state retailers shipping to
Texans and limitations on in-state retailers shipping to
Texans, both moves protective of and supported by state
alcohol wholesalers.
-- Between 2000 and 2006 California alcohol wholesalers
contributed $4,296,304 to state political campaigns. In 2005
California passed legislation protecting wholesalers from
competition by prohibiting Californians from purchasing wine
from out-of-state retailers, a policy California wholesalers
pushed for.
-- Between 2000 and 2006 Michigan wine wholesalers contributed
$2,099,319 to state political campaigns. In 2005 the Michigan
legislature passed a wholesaler-supported law that protected
in-state wholesalers from competition by prohibiting Michigan
consumers from purchasing wine from out-of-state retailers.
-- Between 2000 and 2006 Virginia alcohol wholesalers contributed
$2,580,161 to state political campaigns. The Virginia General
Assembly passed a wholesaler-supported law prohibiting
Virginia wineries from continuing to sell wine directly to
retailers and forcing them to sell their wine to wholesalers.
The amount of money alcohol wholesalers contribute to state
political campaigns in an effort gain influence is often greater than
far more visible industries. For example, in 2006, Texas alcohol
wholesaler political contributions were greater than the political
contributions of all gambling and casino interests, retail interests,
food interests and all business services -- combined. That year Texas
alcohol wholesalers also outspent commercial banks, security and
investment interests, the insurance industry and banks and lending
institutions when it came to political contributions.
"No one disputes the alcohol wholesalers' right to participate in
political process, but when the results of their participation leads
to the detriment of consumers and other members of the industry it is
time to consider the circumstances surrounding their involvement,"
says Wark.
Wark explains, "In nearly every state, law mandates that the vast
majority of wine flow from the producer and through wholesalers before
it gets to restaurants and retailers and then to the customer, a
privileged position that has granted the wholesale tier of the alcohol
industry the kind of enormous power that allows it to shovel $50
million into the political process."
The specialty Wine Retailers Association have made the "Wholesale
Protection" report available to the public at their website:
http://www.specialtywineretailers.org/documents.html. The report looks
at total contributions by alcohol wholesalers from 2000 to 2006 on a
state-by-state basis, as well as identifies the largest contributors
in each state.
Specialty Wine Retailers Association is a nationwide organization
of wine merchants organized to advocate on behalf of retailers and
consumers for fair, constitutional laws concerning alcohol
distribution and direct-to-consumer sales. Through lobbying and
litigation SWRA seeks to legally provide US consumers with the wine
they want from wherever it is available.
Specialty Wine Retailers Association
Tom Wark, 707-935-4424
twark@specialtywineretailers.org
Copyright Business Wire 2008
