Millions of Americans enjoy wine, and the number of world-class wineries in this country is steadily increasing. Some 2,050 of the nation’s wineries produce less than five percent of the nation’s total wine production. Many of these wineries are family businesses operating on a small scale. As the number of wineries has increased, however, the number of wholesalers has decreased from 6,000 in 1950 to about 600 today. In reality, a handful of wholesalers now determines what wines are available to consumers.

Fewer than 17 percent of wineries are represented by distributors in all 50 states. Each year, American wineries produce more vintages than those represented by wholesalers or sold in retail stores. Consumers want to buy those vintages and it is a reasonable expectation that they should be able to purchase the kind of wine they want, in the way they want. Under current conditions, many cannot.

The Internet is an ideal medium for small wineries, especially in California, to showcase their wares, particularly rare and premium vintages. The Internet is also ideal for the wine aficionado seeking to purchase those vintages. But in many states, government and the legal system now work in tandem to keep consumers from ordering wine over the Internet and wineries from shipping their product in response.

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