How Retailers Benefit

Why Wine Retailers Should Support Direct to Consumer Wine Shipments

• Total wine sales increase under direct shipment
  • Most of that increase is sold through traditional retail channels
    • For example, 90% of additional Virginia wine consumption in FY2008 was sold through wholesalers to their customers
    • New Hampshire, a beverage control state, saw a 3.5% increase for in-state wine sales in FY2007 on top of its direct ship program
  • Direct shipment represents typically about 1% of wine consumed in any given state
  • Wholesalers benefit as they sell the majority of wine in the state
    • The CEO of Southern Wine & Spirits said "...I really don’t think [passage of direct wine shipment legislation] has hurt us in any way."
• Retailers stay in business or open
  • Retailer licensees either remain the same or increase after the adoption of direct wine ship legislation
• Increased access to wine
  • Many small out-of-state wineries do not want to sell in Maryland because we do not allow direct-to-consumer sales
  • Under direct ship, retailers will have greater selection available through wholesalers as more wineries become represented and see Maryland as a viable market
• Retailers can ship to more customers
  • Retailers will be able to ship to consumers in Maryland or around the country under the proposed legislation via FedEx or UPS
  • Seasonal retailers at the shore or mountain communities would now be able to maintain a year-round relationship with their customers
• Frustrated wine consumers shop outside the state
  • Most fine wine consumers are currently having to shop outside Maryland to satisfy their demands

Direct ship compliments rather than competes with the three-tier system

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