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A ruling for wine lovers to savor

A federal judge may have cleared the way for Florida residents to buy directly from out-of-state wineries.

By BILL VARIAN
Published August 10, 2005

TAMPA - Wine connoisseurs may wish to toast U.S. District Judge James D. Whittemore over their next glass of cabernet.

Whittemore has struck down a Florida law that blocked out-of-state wine shipments from going directly to consumers.

That could clear way for bons vivants in the Sunshine State to buy from their favorite wineries without going through a middleman.

The ruling mirrors a May decision by the U.S. Supreme Court, which voted 5-4 to strike down similar laws in Michigan and New York.

Whittemore's order on Friday said Florida's law also violates the commerce clause of the U.S. Constitution.

Until now, Florida law has made it illegal for residents to buy directly from out-of-state wineries. They had to go through a store or wholesaler. But the law didn't apply to in-state wineries.

"Florida's statutory scheme thereby discriminates against out-of-state wine producers to the advantage of in-state wine producers in violation of the commerce clause," Whittemore wrote.

Supporters of the law say it ensured the state got its fair share of taxes and that minors couldn't purchase alcohol over the Internet.

Whittemore expressly stated that his ruling applies only to wine, not beer or spirits, and one legislator plans to address access to wine by underage buyers in the next legislative session.

Wine fans say the law was a sop to wholesalers who wanted to force people to purchase their shiraz or pinot from them only. The result was that wines from small producers that didn't bring in much profit could be difficult to find.

"No. 1, the law against the Internet sale of wine and spirits was simply a protective measure by the local people to avoid competition," said Bill Jung, a Tampa lawyer and wine fan. "It's not like we're saving grandma from the sherry bottle in the kitchen."

The impact of the ruling is not immediately clear. Winery organizations are awaiting word from Florida's Division of Alcoholic Beverages, which is expected to make an announcement this week, according to Wine Spectator magazine.

In theory, Jung said, wineries should be able to start peddling their specialty offerings immediately. But it's likely they will wait to analyze the ruling and its tax implications.

The Legislature could move next year to ban all direct-to-consumer wine sales.

State Sen. Paula Dockery, who withdrew a doomed bill last session that would have allowed direct sales, applauded the ruling and said she will submit a new bill to prevent people under the legal drinking age from being able to order wine. "While my bill did not pass during the 2005 legislative session, it turns out that 2005 will nevertheless be a good year for wine producers and consumers in Florida," Dockery said in a news release Tuesday. "Both consumers and Florida vintners will benefit from this ruling."

The Florida lawsuit was initially brought in 1999 by a small group from Sarasota and an Indiana winery.

"It literally gave the wholesalers, in our view at least, a monopoly control over what wine you could buy in Florida," said Jerry Bainbridge, one of the plaintiffs. "If the wholesaler didn't carry it, you couldn't buy it."

The case had been on hold while the Supreme Court took up the matter.

Bainbridge, who runs an investment advisory firm in Sarasota, is a big fan of Turley zinfandel, a cult favorite lauded by Wine Advocate publisher Robert Parker. But it is produced in small quantities and comes with a hefty price tag, so few wholesalers purchase it.

"You could search for a year in Florida and not find a bottle," Bainbridge said.

But he's not waiting for the impact of the ruling to settle out. He's flying to California next week and plans to pick some up while he's there.

Researchers Carolyn Edds and Cathy Wos contributed to this report, as did Chris Sherman, who writes about food and wine for the Times.

[Last modified August 10, 2005, 00:36:13]