A Note on Wine, Interstate Commerce
and Consumer Rights

Dear Friend of Clos Pegase,

Loyal distributors and retailers represent Clos Pegase in every state, and we are strong supporters of the three-tier (winery-wholesaler-retailer) system, recognizing that the vast majority of our wines are sold in this way.

However, we also support the right of consumers to have legal access to any wine they choose by having that wine shipped to them -- especially when it would not otherwise be conveniently available.

Thirty-five years ago there were more than 5,000 alcoholic beverage wholesalers in the United States. Today, owing to widespread consolidation, there are fewer than 250. Even though this small number cannot conceivably handle all wineries -- especially smaller ones -- some wholesalers are determined to prevent others from selling in their territories. They have succeeded in having legislation passed in many states preventing us from shipping our wines directly to you.

The 21st Amendment to the United States Constitution gives states broad powers to regulate the sale of licensed beverages within their borders. But tested against Article I of the Constitution, which guarantees interstate commerce, the only clear power conferred upon the states by the 21st Amendment appears to be the power to go "dry" (no liquor sales) in whole or in part.

Interstate trade barriers are a serious threat to wineries and consumers alike. More than 20 states have already taken action to curtail the direct shipment of wine. But through grassroots efforts, we believe we can resist restricted consumer access to one of the earth's most wondrous products.

If you are as concerned as I am about the protection of our individual rights, please write to your governor and state congress members; you'll find their addresses in the front section of your local telephone directory.

For more information, we urge you to contact Free the Grapes.

Gratefully,

Jan Shrem
Proprietor