From Maryland: Why Retailers Want Shipping
Myth #1: Direct-to-consumer wine sales will hurt Maryland retailers.
Fact: Wine shipping is an
entrepreneurial opportunity for those retailers that want to take
advantage of it; for the rest, it is irrelevant.
Maryland is one of a few states that prohibit chain store sales of beer
and wine, which means that a Maryland liquor licensee must a) be a
Maryland resident; b) not have a liquor license in another state; and
c) only hold one liquor license in their name. As a result of the
franchise exclusion, Maryland liquor stores have only one option for
expanding their bricks-and-mortar business: going online. Of the 1,581
liquor stores in Maryland, most of which are urban and neighborhood
liquor stores, the overwhelming majority do not sell fine wine which is
usually defined as wine priced above $20 per bottle.
We estimate that only about 100-125 fine wine stores exist in
Maryland. These stores are distinguished by a large focus on wines,
with hundreds priced higher than $20 per bottle, and a customer base
that draws from a broad geographic footprint. A typical fine wine
store offers extensive wine education to its staff and customers
through tastings, organized visits to wine-growing areas and winemaker
visits. As these stores specialize in harder to find selections, they
are most apt to take advantage of consumer internet sales for the
discriminating buyer looking for low-production wines. Many fine wine
stores already have online presences and are waiting for legalized wine
shipping to be able to take advantage of it. With a
multi-jurisdictional customer base, these Maryland stores would finally
be able to service their far away customers while gaining new ones from
other states.
Another reason that fine wine stores want shipping is because their
customers are already being forced to shop out-of-state due to
Maryland’s felony ban on shipping. These patrons have wine shipped to
DC, Virginia and West Virginia addresses or buy wine not sold in
Maryland from retailers in those jurisdictions that carry them. Many
fine wine retailers would rather have consumers receive shipments from
wineries directly so that they would not have to develop relationships
out-of-state.
Lastly, only about 15% of all American wineries do business in the
state of Maryland due to their size and lack of distributor
representation. Maryland already has a permit that allows small
wineries to ship directly to Maryland liquor licensees called the
Non-Resident Winery Permit. Currently fewer than 50 wineries hold one
because Maryland’s felony statute is so well known that they do not
want to risk running afoul of it. With the passage of consumer direct
shipping, many retailers anticipate that they will be able to satisfy
their and their customers’ desires for hard-to-find boutique wines
through increased adoption of the Non-Resident Winery Permit. These
highly allocated wines will most likely never be distributed by liquor
wholesalers because of their small production, but they are exactly the
edge that fine wine retailers are looking for to distinguish themselves
in the competitive retail environment.
For fine wine entrepreneurs, legalizing retailer shipping is an
opportunity. For average small business liquor store owners, retailer
shipping is irrelevant to their customers and to them.
Tastefully yours,
Adam Borden
Executive Director
Marylanders for Better Beer & Wine Laws
4315 Underwood Road
Baltimore, MD 21218
Tel: (443) 570-8102
http://www.mbbwl.org
Facebook: http://apps.facebook.com/causes/219249/
Twitter: http://twitter.com/mbbwl
MeetUp: http://www.meetup.com/Marylanders-for-Better-Beer-Wine-Laws/
LinkedIn: http://www.linkedin.com/groups?gid=1873279
Donate: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=2184279
Posted by
Eve
at
3:59 AM
Wineries with Permits
Wineries Able to Ship to MD
Here is a link to the Comptroller's website. Search for "DW-Direct Wine Shippers Permit" under permit type.
Search for wineries
