A national trade association representing fine wine and spirit retailers across the United States has released a white paper proposing a framework to regulate interstate retail wine shipments more “efficiently and effectively.” Founded in 2006, the National Association of Wine Retailers (NAWR) advocates for reforms that would modernize the current system, which it argues restricts consumer access to thousands of wines and deprives state governments of significant tax revenue.
The NAWR’s recommendations operate within the existing three-tier system, which separates producers, distributors, and retailers. However, the association contends that its proposed changes would remove “roadblocks” that currently hinder consumers from accessing a broader range of wines, particularly rare, collectible, and small-production bottles. These restrictions, the NAWR argues, disproportionately affect wine enthusiasts and limit state revenue from wine sales.
Despite the dramatic shift toward online shopping and improvements in interstate delivery efficiency over the past 25 years, the NAWR claims that the online retail wine market has been stifled by state laws designed to protect in-state retailers and wholesalers. Currently, only 12 states and the District of Columbia allow consumers to receive wine shipments from out-of-state retailers, wine clubs, and auction houses, covering just 28% of the U.S. population. Meanwhile, 19 states permit shipments exclusively from in-state retailers, and another 19 ban all retailer wine shipments entirely.
This patchwork of regulations has created a system where only a fraction of the wines imported or produced domestically are widely distributed across most states. According to the NAWR, the current restrictions artificially suppress the potential size and value of the retailer wine shipping channel, which Rabobank estimated to be worth $1.14 billion in 2021. The association believes the actual value could be double that figure if interstate shipping were more widely permitted.
The NAWR highlighted Nebraska as a case study, noting that only 57 of the 27,000 wines approved for sale in the state are vintages from before the year 2000. This limited access, the association argues, underscores the need for reform. The report also pointed out that direct-to-consumer wine shipments were once commonplace before the Supreme Court’s 2005 decision in Granholm v. Heald, which led to stricter regulations on interstate wine shipping.
Tom Wark, executive director of the NAWR, described the white paper as “the only comprehensive exploration of this important channel for wine distribution ever prepared for lawmakers, regulators, and stakeholders.” Among its key recommendations is the adoption of an open permit system, which would allow retailers to pay a “reasonable and not prohibitively expensive” licensing fee to ship wine across state lines. This system would grant jurisdictional oversight to the states issuing the permits, ensuring compliance with local laws.
The NAWR warned that protectionist laws restricting access to legal products ultimately harm states, consumers, and the rule of law. By modernizing interstate wine shipping regulations, the association believes states can unlock new revenue streams while providing consumers with greater access to the wines they desire.
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