Comments on: Wine Distribution Bottleneck http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/ Fri, 07 Jun 2013 11:14:08 +0000 hourly 1 http://wordpress.com/ By: Jamie http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-5276 Wed, 09 Jan 2013 02:17:30 +0000 http://wineeconomist.com/?p=581#comment-5276 Yes for sure, its scary and definitely not good. It is a classic example of rich becoming richer and poor will not make it happen. By that I mean, large companies will keep growing by buying other companies and small companies will not be able to sustain and compete. In the end small wineries and brands will suffer a great deal.

]]> By: Bill Kerrey http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-4487 Mon, 27 Aug 2012 19:27:23 +0000 http://wineeconomist.com/?p=581#comment-4487 What impact will the importers and their suppliers suffer?

]]> By: Mark Goldberger http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-4283 Mon, 06 Aug 2012 07:44:28 +0000 http://wineeconomist.com/?p=581#comment-4283 It’s only a loophole in the sense that many US states still do not allow reciprocal shipping despite the Supreme Court striking down these prohibitive practices in their Granholm decision.

That said, the biggest reason Two Buck Chuck costs more outside of CA is freight. The wine is produced in CA so shipping costs there are minimal.

]]> By: Mike Veseth http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-3286 Mon, 19 Dec 2011 20:54:25 +0000 http://wineeconomist.com/?p=581#comment-3286 As I understand it it’s an exception that allows California wineries to sell directly to California retailers and thus avoid a layer of the three-tier distribution system. This is often cited as a reason Two Buck Chuck is cheaper in California than in many other states. Bronco and Trader Joe’s have made especially good use of this regulation.

]]> By: K.C. http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-3285 Mon, 19 Dec 2011 20:36:30 +0000 http://wineeconomist.com/?p=581#comment-3285 Can you please explain the legal loophole?

]]> By: Eric http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-1583 Thu, 18 Nov 2010 01:28:59 +0000 http://wineeconomist.com/?p=581#comment-1583 I’m curious how price behaves as bottles traverse through the three tier distibution system. For example, if a bottle retails for $25, what did the winemaker sell the bottle for, what did the distributor then sell it for?

Given the bottleneck you described and the fact the change happens slowly if at all when ‘controlled substances’ like wine are involved, how much are you seeing the distribution mix of small and medium-sized wineries shift toward direct to consumer models?

Good stuff, thanks!

]]> By: chris http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-482 Tue, 08 Sep 2009 14:53:58 +0000 http://wineeconomist.com/?p=581#comment-482 Thank you! seems like a vague question, but I am doing a research report on wineries, and this has been valuable info. I think I will go purchase one of your books to help with my research.

]]> By: Mike Veseth http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-481 Tue, 08 Sep 2009 12:02:52 +0000 http://wineeconomist.com/?p=581#comment-481 The wine business has many problems and distribution bottlenecks are certain near the top of the list.

]]> By: chris http://wineeconomist.com/2009/05/05/the-distribution-bottleneck/#comment-480 Tue, 08 Sep 2009 02:55:43 +0000 http://wineeconomist.com/?p=581#comment-480 would you consider this as one of the biggest problems in the wine business as of now?

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