Hostname: page-component-745bb68f8f-hvd4g Total loading time: 0 Render date: 2025-01-23T18:11:33.399Z Has data issue: false hasContentIssue false
  • English
  • Français

Prohibition and Repeal: A Short History of the Wine Industry's Regulation in the United States*

Published online by Cambridge University Press:  08 June 2012

Barbara C. Beliveau  and
M. Elizabeth Rouse
Barbara C. Beliveau
Affiliation:
Economics Department, St. Mary's College of Maryland, 18952 E. Fisher Road, St. Mary's City, MD 20686, Tel. (240) 895–4431, email: [email protected]
M. Elizabeth Rouse
Affiliation:
SNL Financial LC, One SNL Plaza, Charlottesville, VA 22902, Tel. (434) 951–6955, email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

The United States wine industry has experienced tremendous growth in the past twenty-five years. The number of wineries in the United States has grown to almost 5000, located in all fifty states, and creating over a million full time jobs. Alcohol distribution laws that hinge on the Supreme Court's reconciliation of the Twenty-first Amendment and the Commerce Clause have significantly hindered the industry's ability to expand. Current interpretations of the 21st Amendment give states unprecedented freedom to regulate interstate commerce in alcoholic beverages. The resulting regulatory diversity presents problems both domestically and internationally. (JEL Classification: K2, L5, N4)

Type
Articles
Information
Journal of Wine Economics , Volume 5 , Issue 1 , Spring 2010 , pp. 53 - 68
Copyright
Copyright © American Association of Wine Economists 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anderson, J.D. (2007). Small vintners oppose wine bill; legislation banning self-distribution of wine could destroy industry. Charlestown Daily Mail, PIC (February 21).Google Scholar
Bolick, C. (2000). Why you can't direct ship your chardonnay. NewsLink. 4(2), Winter, Beacon Hill Institute for Public Policy Research. Suffolk University.Google Scholar
Denning, B.P. (2002). Smokey and the bandit in cyberspace: the dormant Commerce Clause, the Twenty-First Amendment, and state regulation of internet alcohol sales. Constitutional Commentary, 19, 297–354.Google Scholar
Dickson, M. (2006). All or nothing: state reaction in the wake of Granholm. Whittier Law Review, 28, 491–510.Google Scholar
Durkin, G.E. (2006). What does Granholm mean for the future of the Twenty-First Amendment, the three-tier system, and efficient alcohol distribution?” Washington & Lee Law Review, 63(3), 1095–1128.Google Scholar
Federal Trade Commission (2003). Possible anticompetitive barriers to e-commerce: wine (July, 2003). Retrieved Aug 25, 2008, from www.ftc.gov/os/2003/07/winereport2.pdf.Google Scholar
Garlough, J.W. (2005). Weighing in on the wine wars: what the European Union can teach us about direct shipping. William & Mary Law Review, 46, 1533–1568.Google Scholar
Grafstrom, A.C. (2005). Commerce – intoxicating liquors: wine lovers rejoice! Why vineyards can now ship directly to customers and why everyone else should care. North Dakota Law Review, 82, 557–578.Google Scholar
Johnson, R. (2006). Bill's demise is bitter fruit. The Roanoke Times, C6 (February 7).Google Scholar
McFadden, D.L. (2006). Interstate wine shipments and e-commerce. Journal of Wine Economics, 1(1), 3–6.CrossRefGoogle Scholar
Nielson, A. (2005). Good history, good law (and by coincidence good policy too): Granholm v. Heald, 125 S. Ct 1885. Harvard Journal of Law and Policy, 29, 743–758.Google Scholar
N.N. (2006). One vintage later: free the grapes! Toasts improvement in customer choice in wine following May 2005 U.S. Supreme Court ruling. Business Wire, (May 11).Google Scholar
Office of Law Revision Counsel (2009). United Sates Code 27 USC Sec. 122, http://uscode.house.gov/download/pls/27C6.txt (January 5).Google Scholar
Pinney, T. (2005). A History of Wine in America: From Prohibition to Present. Berkeley, California: University of California Press.CrossRefGoogle Scholar
Riekhof, G.M. and Sykuta, M.E. (2005). Politics, economics, and the regulation of direct interstate shipping in the wine industry. American Journal of Agricultural Economics, 82, 439–452.CrossRefGoogle Scholar
Schorske, S. (2000). The ‘e-tier’ system: cutting edge of alcoholic beverage industry. Vineyard & Winery Management Magazine, November/December, 11–13.Google Scholar
Schorske, S. and Heckathorn, A. (2001). So you want to get married? Relationships with wholesalers. Vineyard & Winery Management Magazine, November/December, 11–13.Google Scholar
Supreme Court of the United States (1827). Brown v. Maryland (25 U.S. 12). Retrieved Aug 13, 2008, from U.S. Supreme Court Center http://supreme.justia.com/us/299/59/case.htmlGoogle Scholar
Supreme Court of the United States (1890). Leisy v. Hardin (135 U.S. 100). Retrieved Aug 13, 2008, from U.S. Supreme Court Center http://supreme.justia.com/us/299/59/case.htmlGoogle Scholar
Supreme Court of the United States (1936). State Board of Equalization v. Young's Market Co. (299 U.S. 59). Retrieved Aug 13, 2008, from U.S. Supreme Court Center http://supreme.justia.com/us/299/59/case.htmlGoogle Scholar
Supreme Court of the United States (1964). Hostetter v. Idlewild Bon Voyage Liquor Corporation (377 U.S. 324). Retrieved Aug 13, 2008, from U.S. Supreme Court Center http://supreme.justia.com/us/299/59/case.htmlGoogle Scholar
Supreme Court of the United States (1984). Bacchus Imports Ltd. v. Dias (468 U.S. 263) retrieved from U.S. Supreme Court Center. Retrieved Aug 13, 2008, from http://supreme.justia.com/us/299/59/case.htmlGoogle Scholar
Supreme Court of the United States (2005a). Alcohol regulation: state control over direct shipment of wine. Supreme Court Debates, 8(1), Washington, DC: Congressional Digest.Google Scholar
Supreme Court of the United States (2005b). Granholm, J. M. et al. , v. Heald, E. et al. , (544 U.S. 460) Supreme Court of The United States, 161. Retrieved Oct 16, 2006, from LexisNexis.Google Scholar
The Constitution of the United States, Article 1, Section 8, Clauses 1–3.Google Scholar
The Constitution of the United States, Amendment 18, Sections 1–3.Google Scholar
The Constitution of the United States, Amendment 21, Sections 1–3.Google Scholar
Versfelt, D.S. (1975). The effect of the Twenty-First Amendment on state authority to control intoxicating liquors. Columbia Law Review, 75, 1578–1610.CrossRefGoogle Scholar
Virginia Farm Bureau Federation (2007). In session: farm bureau heads to general assembly. News and Features, January 26. Retrieved Apr 6, 2007, from http://www.vafb.comGoogle Scholar
Wine Institute (2008). State Shipping Laws. Retrieved Jul, 2008, from http://www.wineinstitute.org/initiatives/stateshippinglawsGoogle Scholar
Wiseman, A.E. and Eilig, J. (2003). How many bottles make a case against prohibition? Federal Trade Commission, Bureau of Economics, Working Paper No. 258.Google Scholar
Wiseman, A.E. and Ellig, J. (2005). Legislative action, market reaction and interstate commerce: results of Virginia's natural experiment with direct wine shipment. George Mason University, Mercatus Center, Working Paper No. 68.CrossRefGoogle Scholar