The California Fine Wine Alliance
is a coalition of consumers, retailers, wholesalers, importers,
and wineries who want to maintain a free market for fine wines.
The organization was founded in April 2002, in response to California
Assembly Bill 1922, which would have created a “Primary
Source” law for wine in California, giving a monopoly
to a few large importers and wholesalers, and destroying the
last free wine market in America. Californians would have been
forced to pay higher prices for a sharply reduced selection
of wines. Many small wine importers and retailers would have
been put out of business.
From the beginning, the fight to stop AB1922 was billed as a
David-and-Goliath struggle. The bill’s backers (including
the world’s largest drinks conglomerate, Diageo) were
well-organized and well-financed, and had at least a six-month
head start in lobbying Assembly members. Virtually everyone
predicted easy passage. Yet, within three weeks CFWA neutralized
any support AB1922 had in the Assembly. Even old-timers say
they have seldom seen a new organization mobilize with such
speed and effectiveness to stop a bill.
HR5385
Rather than disbanding, our Alliance stayed together to protect
consumers and businesses against future threats to a free wine
market. Our next challenge came in October, 2002, when we learned
that Congress was considering a measure (HR5385) that would
have required all imported wines to be accompanied by a chemical
analysis. While such a requirement would have been a burden
for all importers, it would have been most devastating to small
importers working with small amounts of wine. The bill passed
the House of Representatives with ease and seemed headed towards
sure passage in the Senate.
But before the bill could be considered in the Senate, we
worked with the bill’s backers to find common ground,
reaching an agreement to eliminate its worst aspects. The
bill ultimately ran into trouble in the Senate where it died
for that session. As we write this in December, 2003, we must
remain vigilant, since there are reports that HR5385 may soon
be revived.
FDA’s Prior Notice Rules
Our latest challenge began in February, 2003, when the U.S.
Food & Drug Administration (FDA) announced that it would
soon require that all imports of food and wine be accompanied
by the confidential registration number of the producer. While
FDA’s goal was to protect the American food supply from
bioterrorism, the new rules have the potential to unnecessarily
block much of the fine imported wine that currently enters
the U.S. In fact, it could do to the entire American wine
market what AB1922 would have done to California’s.
Absent any other organization to represent our interests,
the California Fine Wine Alliance forged relationships with
affected merchants and importers throughout the United States
and the world. Pooling our resources, we retained the prominent
Washington law firm of Patton Boggs to represent us. We have
been in ongoing discussions with both the FDA and members
of the U.S. Congress. On December 24th, we filed our formal
petition to FDA, arguing that the new rules will not only
cripple the fine wine market worldwide but that the FDA has
overstepped its mandate from Congress.
Beginning with a single-state constituency and focus, the
California Fine Wine Alliance has emerged as the major voice
of consumers and merchants who want to preserve and enhance
the market for fine wines in America.
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