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	<title>Comments on: Kill Bill H.R. 5034</title>
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	<link>http://www.viralvines.com/2010/04/19/kill-bill-h-r-5034/</link>
	<description>Talkin' up the Grapes!</description>
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		<title>By: EaglesNestWine</title>
		<link>http://www.viralvines.com/2010/04/19/kill-bill-h-r-5034/#comment-87</link>
		<dc:creator>EaglesNestWine</dc:creator>
		<pubDate>Tue, 20 Apr 2010 17:54:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.viralvines.com/?p=1324#comment-87</guid>
		<description>Richard:&lt;br&gt;&lt;br&gt;Excellent points. To those I&#039;d add four more.&lt;br&gt;&lt;br&gt;1) The threat of underage drinking with respect to direct shipping is a specious argument for distributors - we ship FedEx, they require adult (over 21) signature and proof thereof at delivery.&lt;br&gt;&lt;br&gt;2) Small and or family owned wineries produce many award winning, artisan wines no distributor would carry these small volume limited release wines that are often the crown jewels of a wine collection. &lt;br&gt;&lt;br&gt;However, since, no distributor would carry these low volume, quality wines, the consumer choice loses out under the three tier system distribution system, and is actually prohibited if direct shipping is disallowed, and thereby limits consumer choice on the store shelves to volume producer.  &lt;br&gt;&lt;br&gt;3)  Small and or family owned wineries have high unit production costs (limited economies of scale - thus cannot sustain wholesale pricing). They tend to sell direct or ship direct to wine lovers to maximize their limited profit. Distributors and restaurants demand discounted wholesale pricing that doesn&#039;t work with the tyranny of the three-tire system.&lt;br&gt;&lt;br&gt;4) And a final point, direct sales represents a tiny percentage of a state&#039;s wine sales and tax revenues. Requiring a monthly or annual sales permit at several hundred dollars in each state for a few cases shipped to say Massachusetts  for example effectively prohibits sales (as economically non-viable for small operations) to that state&#039;s consumers.</description>
		<content:encoded><![CDATA[<p>Richard:</p>
<p>Excellent points. To those I&#39;d add four more.</p>
<p>1) The threat of underage drinking with respect to direct shipping is a specious argument for distributors &#8211; we ship FedEx, they require adult (over 21) signature and proof thereof at delivery.</p>
<p>2) Small and or family owned wineries produce many award winning, artisan wines no distributor would carry these small volume limited release wines that are often the crown jewels of a wine collection. </p>
<p>However, since, no distributor would carry these low volume, quality wines, the consumer choice loses out under the three tier system distribution system, and is actually prohibited if direct shipping is disallowed, and thereby limits consumer choice on the store shelves to volume producer.  </p>
<p>3)  Small and or family owned wineries have high unit production costs (limited economies of scale &#8211; thus cannot sustain wholesale pricing). They tend to sell direct or ship direct to wine lovers to maximize their limited profit. Distributors and restaurants demand discounted wholesale pricing that doesn&#39;t work with the tyranny of the three-tire system.</p>
<p>4) And a final point, direct sales represents a tiny percentage of a state&#39;s wine sales and tax revenues. Requiring a monthly or annual sales permit at several hundred dollars in each state for a few cases shipped to say Massachusetts  for example effectively prohibits sales (as economically non-viable for small operations) to that state&#39;s consumers.</p>
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	<item>
		<title>By: WineForBlondes</title>
		<link>http://www.viralvines.com/2010/04/19/kill-bill-h-r-5034/#comment-86</link>
		<dc:creator>WineForBlondes</dc:creator>
		<pubDate>Tue, 20 Apr 2010 05:40:48 +0000</pubDate>
		<guid isPermaLink="false">http://www.viralvines.com/?p=1324#comment-86</guid>
		<description>Agreed.  This is bullshit.  I&#039;ll post on it.</description>
		<content:encoded><![CDATA[<p>Agreed.  This is bullshit.  I&#39;ll post on it.</p>
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