Out-of-state wine importers criticize California's distribution laws


As we have previously discussed, the United States has been taking action that is likely to increase drink prices. This is relevant not only at the national, but also at the state level. The debate has reached California, where Orion Wine Imports is unhappy with California's interstate shipping rules:

In California, importers and wholesalers based outside the state must first sell to an importer or wholesaler in California, even though in-state importers don't have to. Orion argues that adds distribution costs to out-of-state importers that in-state ones don't face, which violates the Commerce Clause and the Privileges and Immunities Clause, per the complaint.

Orion claims the laws could prevent it from selling and delivering some of its wine in California altogether "if the demand is so small or the wine is so new and unknown that no wholesaler will agree to carry it." Moreover, they have no plans to open a facility in California and "cannot afford to do so..."

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