by Joel Goldberg

A State House Committee has unanimously approved a bill to halt all retail wine delivery in Michigan, whether by in-state or out-of-state merchants. The action, on a 6-0 vote, came Thursday, November 13, one day after the bill was introduced.

The legislation would outlaw such common practices as sending gift baskets that contain wine, or stores delivering wine to the site of a wedding or party. Michigan retailers could only turn over wine to customers at their stores, and consumers would lose the right to order wine by phone or online for retailer delivery.

According to Cari Noga in Crain's Detroit Business, the ban would also jeopardize the existence of new Michigan online startup, Winebuys.com, whose entire business model relies on shipping directly from Michigan to customers nationwide. Noga reported its Detroit-area founders recently invested over $1 million to start the business, and anticipate $10 million in sales by next year.

The bill, co-sponsored by term-limited lame duck Representatives Barbara Farrah and Chris Ward, came in response to a recent Federal court decision (article) that overturned Michigan's retail wine shipping law as unconstitutional.

The invalidated law let in-state retailers ship or deliver wine to their customers, but denied the same right to out-of-state merchants.

Robert Epstein, plaintiffs' attorney in the case, called the legislature's attempt to prohibit all retail shipping "vindictive", noting that  Michigan's own retail businesses and consumers would be the major losers if the proposed delivery ban passes. Epstein acknowledged that a ban could supply grounds for the State to return to court and seek dismissal of the original verdict.

Those who received sufficient advance notice to attend the Committee hearing included representatives of the Michigan Beer & Wine Wholesalers Association (MBWWA) and the state's Liquor Control Commission, both of whom spoke in favor of the ban.

MBWWA members are among the state's top contributors to the campaign coffers and officeholder funds of Michigan legislators (see sidebar). They control the selection, price and distribution of nearly all wine sold at retail and in restaurants within Michigan.

If the legislative delivery ban fails to pass and the court ruling remains intact, Michigan consumers would have an option to receive wine deliveries from out-of-state retailers who don't buy from MBWWA members.

Last update: 11/17/08

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