Wine

The vineyard.

My girlfriend's uncle owns a vineyard in Spain in the region of Ribera del Duero. While visiting the country earlier this year I talked to the uncle and said I would be glad to take a couple of bottles back with me and see if I could find anyone interested in importing them to the U.S. Since that time I have discovered some things about wine importation.

Here's how it would work in a libertarian world:

• You find someone, either a distributor or retailer, who is interested in the product.
• You contact a shipping company and import the wine.
• You provide wine to the interested parties.
• They pay you money.

Here's how it works right now:

• You obtain an Importer's Basic Permit from the Alcohol and Tobacco Tax and Trade Bureau. Obtaining such a permit requires the submission of TTB Form 5100.24 and supporting documentation consisting of seven other forms.
• You also have to file TTB Form 5630.5d
• You must obtain certificates of label approval or certificates of exemption from label approval (COLAs) in order to ensure that products are labeled according to Federal laws and regulations.
• Fill out forms and obtain a license from the state government.

Businesses must be up in arms about such regulation, right? From what I gather, not really. Check out this press release from the Wine and Spirits Wholesalers of America:

The Second Circuit Court of Appeals today unanimously affirmed the decision of the Southern District of New York and upheld the ban on shipments of alcohol into New York state by out-of-state retailers.

“This unanimous opinion clearly and forcefully reinforces the Wines & Spirits Wholesalers of America‘s (WSWA) view that the landmark 2005 Supreme Court decision in Granholm v. Heald preserved a state’s right to control the distribution of alcohol. States not only have the right under the 21st Amendment, but also the responsibility, to require all alcohol be distributed through a controlled and regulated system designed to prevent underage access and ensure product integrity,” WSWA President and CEO Craig Wolf said. “This decision out of the Court of Appeals is a strong affirmation of state power and will cast a long shadow over other pending cases, particularly the Texas Siesta Village case currently before the Fifth Circuit.”

Now, maybe the good people at the WSWA really are committed to state's rights. Or maybe, just maybe, they like having so many regulations in place which acts as a barrier to competition. In addition, they also benefit because you can avoid all of the regulations and paperwork if you go through an established party, such as a wholesaler, which has already obtained the necessary licenses. Given the choice between doing all that paperwork myself or trying to go through a wholesaler it's rather obvious which path I will take.

Questions: Which approach -- the libertarian one or the current model -- best serves the interest of consumers? Which one is likely to have the lower prices? Which one benefits established interests and which benefits the little guy?