Feedback
Feedback
Three-tier terrorism
Kudos to Tom Wark for finally "telling it like it is" ("Updating the Supply Chain," Viewpoint, May 2009). He indeed implies that the second tier is the problem, but I will take it one step further and call them "Only-we-can-sell-to-retailers terrorists." WSWA has spent millions in lobbying state legislatures, and threatening them with violation of the three-tier system if farm wineries sell directly to retailers. Usually the net result of having only wholesalers ship to retailers is raising bottle prices about $3 per bottle. Everybody loses.
A few states have stood up to them, but most take their "bribe" and stop direct-to-retail distribution by the wineries. This was the case in Virginia in 2006. Only because wineries could not get distributors, the General Assembly in 2007 took $260,000 of taxpayers' money and set up a "virtual wholesale company," so that the wineries can pay $5 per order and deliver directly to retailers. Of course, if the system loses money, the state will just take more taxpayer money to keep it afloat.
No one in the Assembly will address the question, "How does a farm winery in Virginia violate the three-tier system if it is issued a wholesale license, while any wholesaler in Virginia can have an import license (or visa-versa) and not violate the three-tier system?"
Hopefully, state winery associations will read Mr. Wark's Viewpoint and take up "vines" to promote the cause.
Stan Rose
Rio Hill Wine and Gourmet
Charlottesville, Va.
Stores claim discrimination
"B.C. Wineries Claim Discrimination by Peter Mitham (Headlines, winesandvines.com, May 14) leaves one with the impression that the VQA wine stores have levied the 6% fee, when in fact the VQA stores had no say in the matter and are in fact opposed to it. This fee was introduced by the British Columbia Wine Institute (BCWI), and the VQA stores were not consulted prior to its implementation. I note that Mr. Mitham spoke to and quoted the BCWI representative and representatives of non-BCWI wineries, but he neglected to speak to any VQA storeowners.
Beth Crawford
Proprietor
VQA Wine Shop at Mattick's Farm
Victoria, B.C.
Thank you Peter Mitham and Wines & Vines for writing about this critical issue. We are the busiest VQA store in British Columbia, and have been for six years. We would like to clarify that Discover Wines Ltd. adamantly opposed proposals by the BCWI to increase their fees to wineries. Wineries saw their fees for wines sold through VQA stores double in four years from 2% to 4% for all BC wineries producing VQA wines. These fee hikes were passed by the board of directors of the BCWI, and unfortunately VQA stores have no voting authority. The fees are utilized to fund approximately half of the BCWI budget.
VQA stores are independently owned businesses. The BCWI has absolutely no responsibility or accountability for our business, as emphasized in our contract. These and other policies continue to financially harm our small business. To now impose a 10% fee for non-members during a recession is fiscally irresponsible and is creating further hardship to wineries and VQA stores. We look forward to more progressive discussion on this topic.
T. Gray and S. Mick
Discover Wines Ltd.
Kelowna, B.C.
The feedback above was submitted as a comment following the posting of Mitham's Headline article on winesandvines.com on May 14. An edited version of the article is published on page 15 of this issue.--Editor
Kudos to Tom Wark for finally "telling it like it is" ("Updating the Supply Chain," Viewpoint, May 2009). He indeed implies that the second tier is the problem, but I will take it one step further and call them "Only-we-can-sell-to-retailers terrorists." WSWA has spent millions in lobbying state legislatures, and threatening them with violation of the three-tier system if farm wineries sell directly to retailers. Usually the net result of having only wholesalers ship to retailers is raising bottle prices about $3 per bottle. Everybody loses.
A few states have stood up to them, but most take their "bribe" and stop direct-to-retail distribution by the wineries. This was the case in Virginia in 2006. Only because wineries could not get distributors, the General Assembly in 2007 took $260,000 of taxpayers' money and set up a "virtual wholesale company," so that the wineries can pay $5 per order and deliver directly to retailers. Of course, if the system loses money, the state will just take more taxpayer money to keep it afloat.
No one in the Assembly will address the question, "How does a farm winery in Virginia violate the three-tier system if it is issued a wholesale license, while any wholesaler in Virginia can have an import license (or visa-versa) and not violate the three-tier system?"
Hopefully, state winery associations will read Mr. Wark's Viewpoint and take up "vines" to promote the cause.
Stan Rose
Rio Hill Wine and Gourmet
Charlottesville, Va.
Stores claim discrimination
"B.C. Wineries Claim Discrimination by Peter Mitham (Headlines, winesandvines.com, May 14) leaves one with the impression that the VQA wine stores have levied the 6% fee, when in fact the VQA stores had no say in the matter and are in fact opposed to it. This fee was introduced by the British Columbia Wine Institute (BCWI), and the VQA stores were not consulted prior to its implementation. I note that Mr. Mitham spoke to and quoted the BCWI representative and representatives of non-BCWI wineries, but he neglected to speak to any VQA storeowners.
Beth Crawford
Proprietor
VQA Wine Shop at Mattick's Farm
Victoria, B.C.
Thank you Peter Mitham and Wines & Vines for writing about this critical issue. We are the busiest VQA store in British Columbia, and have been for six years. We would like to clarify that Discover Wines Ltd. adamantly opposed proposals by the BCWI to increase their fees to wineries. Wineries saw their fees for wines sold through VQA stores double in four years from 2% to 4% for all BC wineries producing VQA wines. These fee hikes were passed by the board of directors of the BCWI, and unfortunately VQA stores have no voting authority. The fees are utilized to fund approximately half of the BCWI budget.
VQA stores are independently owned businesses. The BCWI has absolutely no responsibility or accountability for our business, as emphasized in our contract. These and other policies continue to financially harm our small business. To now impose a 10% fee for non-members during a recession is fiscally irresponsible and is creating further hardship to wineries and VQA stores. We look forward to more progressive discussion on this topic.
T. Gray and S. Mick
Discover Wines Ltd.
Kelowna, B.C.
The feedback above was submitted as a comment following the posting of Mitham's Headline article on winesandvines.com on May 14. An edited version of the article is published on page 15 of this issue.--Editor
SHARE »
