Comments on: New Bill Challenges MN Wine Status Quo

By: Garrick Van Buren

Garrick Van Buren — Mon, 19 Feb 2007 16:39:08 +0000

I’m all for changing the current status quo. While it’d be convenient to have wine available at the grocery store - it’d be more convenient to be able to purchase it after 8pm.

By: Tim

Tim — Sat, 17 Feb 2007 16:31:35 +0000

Thanks for bringing up the 3-tier system, Sue. You are correct that the issue is quite complex and based upon outdated law, so I will be posting a bit more on the issue this weekend.

By: Sue

Sue — Sat, 17 Feb 2007 15:58:21 +0000

oh, oops, you made the tax point in your post…good point. The rest of my just-submitted response holds true.

By: Sue

Sue — Sat, 17 Feb 2007 15:55:35 +0000

While I agree with you entirely on the fact that reduced competition increases prices because it allows the wholesalers and retailers to work on higher margins, I think it’s misleading to imply that the issue is that simple or that wine prices there can ever be as low as California. In California there is often no distributor involved at all, which will unlikely ever be the case here in Minnesota (or at least not or a very, very long time). Cut out the middle man and cut out some of the price increase. Also, the cost of shipping the wine to Minnesota from California is quite high, will probably remain high, and definitely impacts the price of the wine. Thirdly, Minnesota’s tax structure has a lot to do with our prices here, and tax rates are unlikely to be affected by increased competition. So, bottom line, you’re absolutley right, but this proposed law change for increased competition is only a small part of our battle. A good first step.