Consumer look at Idaho liquor law

As a wine retailer we are governed daily by Idaho Liquor law as are all of our great local wine distributors, Idaho and out of state wineries, and all other restaurants, grocery stores, warehouse stores, and any place else you purchase wine by the glass or bottle.

This law affects all of you as consumers though many times in ways that are not obvious or difficult to know unless you are involved with them every day.

We are frequently asked, "Can you get the wines from this winery?" This is one of the key areas where Idaho law does impact you as a consumer every time. Unless a winery is located in the state of Idaho, or the wine is purchased and brought into the state by a licensed Idaho wine distributor the answer is no, we cannot bring it into our shop and sell it, not even if the out of state winery is willing to sell it to us at wholesale. It is illegal. If the shop, store or out of state winery are caught selling wine that does not go through a distributor, the financial penalties are steep, so it is a part of the law that few challenge.

In addition the distributor must register each wine they import to the state from a winery in order to legally sell it here. This creates some confusion for consumers at times.

For example we may have access to the Cabernet from an out of state winery but not the Merlot or Chardonnay. This is usually the result of the distributor and the winery making the economic based decision on what will sell the best, as there is a cost to the winery to register each wine and to the distributor in the registration process, plus the cost to carry the inventory.

Another little known part of the Idaho law is that a distributor must sell their wine to all retailers and restaurants regardless of size, or location at the same price and those prices must be posted or registered with the State Liquor Board. So whether it is Costco or the Dinner Party we all buy wine at the same wholesale price.

So why then are there price discrepancies between all of the different retailers or between restaurants? This is where the answer becomes a bit more complex.

The easy answer is the economics of the business, as grocery stores, warehouse stores, and small wine shops all have different business and profitability models therefore they mark up wine to a larger or lesser degree based on those factors.

Another reason though is a part of Idaho Liquor law called the "post off." This is where a distributor reduces the wholesale price with the state for a period of 90 days. They will do this many times to accommodate a large sale to a big grocery or warehouse chain. While that same "post off" price is available to all of us, they will frequently sell all of the particular wine in one huge lot to a big national chain with the capital necessary to make a purchase of that size, thus preventing a smaller shop the same access, simply because that particular wine and vintage is literally sold out.

At times smaller wine shops have the opportunity to buy an entire lot of wine at these reduced wholesale prices. In all cases we pass the savings along to you the consumers as do most retailers of every scale so it really is a good deal for all.

We also feel that a knowledgeable consumer is our best customer so we will always disclose our deals that we have attained on these "post off" prices. If you ever have a question about wholesale pricing ask your favorite wine professional and most times they will disclose it and we do every time.

While we always appreciate and encourage the support of locally owned businesses like ours it is important for you as consumers to know that you can still purchase wine from out of state wineries and have it shipped directly to you. The laws that govern direct winery purchases are very different than those that govern retail stores. While a winery from Washington, Oregon or California has certain hurdles, they must clear with the state of Idaho to ship directly to consumers. Once they have cleared them you can buy the wine directly although most times it works out to be more expensive due to the shipping cost.

The final part of the law that has some impact on you as consumers is that we as a retailer are prohibited from being a distributor and similarly distributors cannot be retailers. The effect is that smaller wineries who might otherwise gain representation and therefore access to this market do not. While it does limit wineries the effect is minimized through the great work done by our local distributors.

While we always hope that our customers ask about wine availability we also feel that a more knowledgeable consumer is more understanding of the limitations and opportunities provided by the law that governs our business.

If there is a topic you would like to read about or questions on wine you can email George@thedinnerpartyshop.com or make suggestions by contacting the Healthy Community section at the Coeur d'Alene Press.

George Balling is co-owner with his wife Mary Lancaster of the dinner party — a wine and table top decor shop in Coeur d'Alene by Costco. George is also the managing judge of The North Idaho Wine Rodeo, and writes frequently for the on line version of Coeur d'Alene magazine at www.cdamagazine.com. His articles can also be found on the blog at www.thedinnerpartyshop.com.