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“At Rest” – A Monopoly Risk

David Slaying Goliath by Peter Paul Rubens

There’s a war being waged in the State of New York, by the two largest wine wholesalers, to monopolize the local wine industry.  If this “At Rest” amendment to the alcoholic beverage control law is passed, all other importers/distributors, who warehouse their wines out-of-state, would have to first deliver their wines/spirits to a licensed New York State wholesaler for a period of 48 hours, before it could be delivered to you.  This means a minimum delay of THREE DAYS, in receiving all orders placed.

Please join us and 40+ other wholesalers, who represent the industry’s 99%, in fighting state-domination by two single corporations.

If passed, “At Rest” would:

1. Increase the price of all fine wines & spirits

2. Decrease the vast array of choices currently available to the consumer in the state of New York

3. Monopolize and homogenize the marketplace

Details follow below.  Act now and contact your Senator to tell him/her that this “at rest” amendment puts our industry at risk. The stakes are high. Spread the word before we are silenced…

A critical issue to the very existence of the fine wine industry in New York has been brought to our attention and we wanted to make you aware of it.  One of the largest liquor wholesalers is lobbying the State Senate to include an “at rest” provision in their 2012 budget. The practical effect of “at rest” means that only those distributors delivering product out of New York warehouses could legally sell you wine. Legislation such as this would affect essentially every wholesaler currently in operation other than the two biggest ones, since they almost all warehouse in New Jersey, including our company.

Imagine a landscape with only the two largest wholesalers remaining to work with. Selections would become painfully limited. Prices would most certainly rise.  Service would plummet. Their pro-“at rest” argument (union warehouse jobs and revenue) is simply a veiled attempt by this wholesaler to destroy all of the fine wine wholesale competition, because most of your valued New York wholesalers would undoubtedly be forced to close their doors. We have contacted our State Senators to tell them that we oppose “at rest” in either legislation or budget language. We urge you to do the same before FRIDAY, MARCH 9th. Please contact your Senator to tell them you oppose “at rest.”  The procedure is quick and simple.  Please just click on the link: http://www.nysenate.gov/senators. Type in your address and zip code under “FIND MY SENATOR” and hit submit. Fill out the online form with your information (ignoring the drop down box), type “At Rest” in the Subject Line and either craft your own statement or feel free to copy and paste the paragraph below. We thank you for your time, your attention, and most of all your support.

Dear Senator,

It has come to our attention that two large wine & spirit wholesalers are lobbying you to include “at rest” in the 2012 budget. They are claiming “at rest”  will create revenue for the State. But, as a licensed, small business that buys from many wine distributors, I do not agree that it would create revenue. Instead, I believe that “At rest” would result in hundreds of closed businesses, including both wholesalers and retailers, and at least a thousand unemployed New Yorkers.  As such the State would lose hundreds of millions in taxable revenues from passing this bill. The volume of wine sold in the State (and the accompanying beverage excise tax revenue) would severely decrease.  Consumer selection would be limited and the price of wine would escalate with the costs inevitably passed on to the consumer. Moreover, the ancillary effects of the resultant higher unemployment, lower sales and income tax revenues collected, would further exacerbate the current economic position of the state, not improve it.  With the above in mind, we urge you NOT to vote for “at rest” either in legislation or in the budget language.

Thank You

.

8 Comments Post a comment
  1. Marc Pflieger #

    Please contact your Senator! Also, sign the Petition more than 500 strong already!

    http://www.signon.org/pickup_pdf.html?job_id=356718

    March 7, 2012
  2. Marc Pflieger #

    Wrong link in my previous post!

    Please contact your Senator! Also, sign the Petition more than 500 strong already!

    http://signon.org/sign/ny-state-senate-do-not?source=c.em.cp&r_by=2844271

    March 7, 2012
  3. Thanks Marc! We appreciate your support. We’ve posted the link to the petition in today’s post, which includes a bit more information on the issue at hand.
    Cheers!

    March 7, 2012
  4. linking to this article from my piece on starchefs.com

    http://www.starchefs.com/cook/wine/crush/ny-state-budget-amendment

    March 7, 2012

Trackbacks & Pingbacks

  1. Wine Wars in New York Legislation | Do Valle
  2. “At Rest” – A Monopoly Risk, Part II | T. Edward Wines
  3. » The “at rest” legislative fight in New York State continues! JP stuff

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