Letters

Letters 07-25-2016

Remember Bush-Cheney Does anyone remember George W. Bush and Dick Cheney? They were president and vice president a mere eight years ago. Does anyone out there remember the way things were at the end of their duo? It was terrible...

Mass Shootings And Gun Control The largest mass shooting in U.S. history occurred December 29,1890, when 297 Sioux Indians at Wounded Knee in South Dakota were murdered by federal agents and members of the 7th Cavalry who had come to confiscate their firearms “for their own safety and protection.” The slaughter began after the majority of the Sioux had peacefully turned in their firearms...

Families Need Representation When one party dominates the Michigan administration and legislature, half of Michigan families are not represented on the important issues that face our state. When a policy affects the non-voting K-12 students, they too are left out, especially when it comes to graduation requirements...

Raise The Minimum Wage I wanted to offer a different perspective on the issue of raising the minimum wage. The argument that raising the minimum wage will result in job loss is a bogus scare tactic. The need for labor will not change, just the cost of it, which will be passed on to the consumer, as it always has...

Make Cherryland Respect Renewable Cherryland Electric is about to change their net metering policy. In a nutshell, they want to buy the electricity from those of us who produce clean renewable electric at a rate far below the rate they buy electricity from other sources. They believe very few people have an interest in renewable energy...

Settled Science Climate change science is based on the accumulated evidence gained from studying the greenhouse effect for 200 years. The greenhouse effect keeps our planet 50 degrees warmer due to heat-trapping gases in our atmosphere. Basic principles of physics and chemistry dictate that Earth will warm as concentrations of greenhouse gases increase...

Home · Articles · News · Other Opinions · The real threat to...
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The real threat to Michigan wineries comes from out-of-state

Mark L. Ribel - August 11th, 2005
Considering his position as a paid spokesperson for a northern Michigan winery, Rick Coates’ biased, misleading commentary on the Internet alcohol sales/direct shipment debate is certainly understandable, yet still unacceptable (“Grapes of Wrath,” July 17, 2005). His slanted interpretation of the legislative response to the recent U.S. Supreme Court decision fails to acknowledge the very real threat to Michigan businesses -- including Michigan wineries -- and to the state budget if we open the doors to a flood of out-of-state alcohol vendors.
To fully understand where we are headed, we must clarify where we have been on this issue. Michigan’s wholesalers have long supported Michigan’s wineries‘ right to sell their product. They supported the initial law that carved out a special exemption on shipping for in-state wineries, they spent more than a quarter of a million dollars defending this special exemption in the courts, and they even finance the Michigan Grape & Wine Council through wholesaler licensing fees. Even the proposed prohibition on Internet and mail order alcohol sales and direct shipment would allow wineries to sell their wine at the winery premises, at properly licensed tasting rooms and at restaurants located on or adjacent to the winery premises.
Specialty wine producers are not the only businesses with a stake in the outcome of this issue. Distributors -- such as myself -- provide a number of good-paying jobs for our community, including drivers, warehouse workers and administrative staff. Around the state, distributors employ more than 5,000 people, with wages and benefits exceeding $240 million. Statewide, distributor businesses’ sales exceed $1.5 billion, we pay more than $11 million in SBT, property taxes and fees, and we contribute another $4 million to local charities and community events.

POTENTIAL LOSSES
Any direct shipment from out-of-state companies is also a lost sale to one of the 8,000-9,000 Michigan retailers. We estimate -- conservatively -- that Michigan retailers could lose millions of dollars in sales in a single year. That drop in sales threatens thousands of jobs supported by the current distribution industry, as well as the related businesses throughout the state. Are these jobs any less valuable than the winery positions many imply are in jeopardy with a ban on Internet and mail order sales? Of course not.
These jobs, tax revenues and contributions are just as valuable to the families and communities that rely on them as wine producer jobs and economic contributions. And let’s not fool ourselves -- distributor jobs and these vital revenues are absolutely in jeopardy if alcohol producers are allowed to circumvent our proven three-tier alcohol distribution system and avoid Michigan’s sales and excise taxes.
The legislation still allows Michigan wineries to sell to consumers on their winery premises, at tasting rooms separate from their winery premises, at restaurants on their licensed premises (HB 4959, section 113) and through licensed wholesalers and retailers. In fact, as Mr. Coates himself even noted, these sales through distributors and retailers represent the vast majority of the Michigan wine currently sold in the state.

UNENFORCEABLE
In addition to these economic concerns, the compromise solutions being discussed will ultimately prove to be unenforceable because the Supreme Court declared our past efforts to carve out special exemptions for wineries illegal and the other options rely on enforcement mechanisms that have been proven ineffective through past law enforcement stings.
Just last month, the Ingham County Sheriff’s department supervised a sting in which an underage MSU student ordered vodka online and had it delivered to her doorstep — where the delivery driver allowed her 18- year-old sister to sign for the package. Similar stings have taken place across Michigan and in other parts of the country, including several in Florida, Washington and Massachusetts. Governor Jennifer Granholm made cracking down on Internet alcohol sales a priority when her office conducted a series of stings while she was Michigan Attorney General.
Prohibiting Internet alcohol sales and direct shipments of all alcohol is the only responsible option at our disposal. No one truly benefits from the shrill, accusatory rhetoric such as that being purported by the wineries. Our past support of the wineries should not be dismissed and the seriousness of the policy choices facing us deserves an honest discussion about our options.
 
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