Posts Tagged ‘wine’

Constellation follows long tradition of pay-to-play politics

Friday, February 12th, 2010

Constellation Brands Inc. denied Thursday that its $25,000 campaign contribution to the re-election of Gov. David Paterson was tied to Paterson’s proposal to allow wine sales in grocery stores.

The donation was made the week before Paterson announced his wine plan Jan. 19, as part of his proposed 2010/2011 budget, raising concern. Blair Horner of New York Public Interest Research Group, said Thursday that “generally speaking, major businesses don’t give campaign contributions out of the goodness of their hearts. They believe it will have influence and they don’t give unless they think it will work.”

Constellation spokeswoman Cheryl Gossin said the contribution is “not in any way connected to the wine in grocery stores” proposal. Constellation made the contribution in response to a campaign fundraiser, Jan. 12, in Rochester organized by community leaders, she said. Constellation had planned to make the contribution a month before that, she added.
While Constellation supports the governor, she said, it has and will remain neutral on the wine-in-grocery stores issue.

Likewise, Richie Fife, spokesman for Paterson’s re-election campaign, said Thursday, “there is absolutely no connection” to the Constellation contribution and the governor’s support for wine in grocery stores.

The long-standing debate over whether New York should allow wine in supermarkets heated up this year with the state’s fiscal woes. Opponents say the proposal would put the state’s roughly 2,700 liquor stores out of business. Supporters say putting wine in the state’s 19,000 groceries and convenient stores would boost wine sales and raise tax revenue.

Somedays, it’s really hard not to be cynical.

If the allegation is true (that is, that Constellation donated money to a politician in order to influence the “wine in grocery stores” issue), it’s only following the example of every other corporate interest who enables the election (or re-election) of politicians who will do their bidding when the contributor’s “booty call” comes in. Every other major legislative and policy decision made in this fine country (financial reform, health care, water rights, direct shipping, and so on) seems to follow this time-honored tradition.

Paterson’s denial-by-proxy that there is no connection is disingenuous at best. The fact that an corporation who had an interest in changing how wine is sold in New York made a sizable (if not six-figure) contribution to the governor’s re-election campaign. The appearance of impropriety is enough that the governor needs to do more than just claim that there’s no connection.

WARNING: SARCASM

Honestly, what’s the problem with large corporations paying to get their way in politics? Apparently it’s the only way to get things done in the United States. Now, if only the teeming unwashed masses of people who can actually vote a ballot had that kind of influence…

Posted via web from Wine Biz Radio

Stuff you should know: ShipCompliant and their newsletter

Thursday, February 11th, 2010

Hidden Costs of Expanding Your Direct Shipping Program

At what point does it make sense to get a direct shipping license for a particular state? Common business sense dictates you will wait until (at a minimum) the benefits of gaining market access outweigh the licensing costs. But are you fully aware of the costs involved? Make sure you are ready to grow your business by understanding these “hidden” fees you may encounter.

Bonds

Bond fees are commonly overlooked by wineries calculating the cost of shipping to a new state. A bond is a written guaranty that all taxes owed will be paid to the state. A bond fee is essentially an insurance premium—you pay an annual or biannual “premium” to secure a bond. Bond premiums typically average around 10% of the total bond price, or $50-$180 out-of-pocket for the winery on a recurring basis . Different bonding agents may quote different rates, so it pays to shop around.

Connecticut, Idaho, Illinois, Indiana, Kansas, Oregon, Texas and Wisconsin all require a bond in order to obtain a direct shipping license. In all of these states (except Oregon) you will need to secure a bond before submitting your license application. Oregon issues the bond documents after the license application has been received but before the license is issued.

Label Registration

Though not as common as bond fees, some states charge for label registrations. Ohio, a state that 26% of direct shippers have in their program, requires wineries to register all the labels that will be shipped into the state for a one-time registration fee of $50 per label. This can add up if you plan on shipping multiple labels into the state so you will want to consider this in your budget.

And if that sounds pricy to you, consider Connecticut. Connecticut charges $200 per label and you must re-register labels every 3 years if you continue to ship that product to Connecticut.

Georgia, Louisiana, New York, North Carolina and Virginia require label or brand registration, but there is no charge in these states.

Application Fees

Depending on your business structure, some states may require business registration, tax registration or other application fees. This depends entirely on how your business is set up and varies state to state. You may encounter some of these additional fees if you plan to start shipping to Arizona, Connecticut, Hawaii, Kansas, Maine, Michigan, North Carolina, Ohio, Tennessee, Virginia or Wisconsin.

The key to ensuring a profitable direct shipping program is to do your research in order to avoid getting caught off-guard with unexpected costs. If you are responsible for your company’s direct shipping program, you can stay on top of all required license, bond, registration and application fees at EasyWineLicensing.com or you can use this online break-even calculator to help you determine true costs. Knowledge is power!

ShipCompliant has a newsletter they send out, and this article made me sit up and take notice. While SC has been a sponsor of the show in the past (though not currently), I will say that you are not likely to find a firm more knowledgeable of the regulatory Gordian Knot that is beverage compliance than these guys.

Posted via web from Wine Biz Radio

Setting The Record Straight, Already: Unified ‘10 “Social Media & YOU”

Friday, January 29th, 2010

Apparently, there was a question about what Paul Mabray (of Vintank) said during the panel discussion on “Social Media & YOU” at the Unified Wine & Grape Symposium on Wednesday afternoon this week. Fortunately, our associate producer (and wunderkind) Christophe had the presence of mind (as he apparently reguluarly does) to have his handy digital recorder running during the presentation. Well, he did start it after El Jefe finished his presentation, so the audio starts at the Q&A for Jeff Stai. However, the recording has everything from Paul, so we could set the record straight with respect to what he did and didn’t say regarding whether wineries should outsource their social media presence and/or strategy.

Here’s a transcript of the audio in question. I can make this audio available to whomever wants to hear it with their own ears.

Rick Bakas: We’ve had a couple questions come in for Paul. All right, from Rick Breslin: Should a winery hire an in-house analyst or go to an outside agency if they want to have a social media presence or strategy?

Paul Mabray: Um, I think it’s size dependent and brand dependent. I mean, if you’re going to be a focus on social media and you have a lot of online activity of course you should have an in-house person; but otherwise, it’s cheaper and easier to get an outsource. I mean, in reality, I mean Rick, you’re not inexpensive, are you?

Rick Bakas: I don’t get paid at all. I actually pay St. Supéry [Paul: Got it.] to work there, I’m having too much fun.

We hope this puts the matter to rest, but we do have the audio available.

Posted via email from Wine Biz Radio