An Analysis of U.S. Direct Wine Shipment Laws

Nelson Barber and Tim Dodd
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Nelson Barber: Texas Tech University
Tim Dodd: Texas Tech University

No 05-2008, Working Papers from Enometrica - Review of the Vineyard Data Quantification Society (VDQS) and the European Association of Wine Economists (EuAWE) - Macerata University, Faculty of Communications

Abstract:

U.S. Prohibition was repealed in 1933 placing control of alcohol to the fifty states. This resulted in explosive growth of wholesalers creating a highly competitive environment.
In contrast, small wineries increased dramatically. States allowed wine producers to ship directly to consumers within and without their states. Wholesalers demanded states enforce their laws prohibiting importation of alcohol. The U.S. Supreme Court ruled in 2005 the Twenty- first Amendment and the Commerce Clause should be read together. State laws discriminating against interstate commerce in alcohol were unconstitutional. State laws are changing. The problem is not one of protectionism towards abuses of alcohol, but rather towards intra-state commerce based on the legacy of Prohibition.

Keywords: Prohibition; Direct Wine Shipments (search for similar items in EconPapers)
JEL-codes: K23 M38 N42 (search for similar items in EconPapers)
Date: 2008-03, Revised 2010-01
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