The Supremes and Savennières

CourtBuilding

This week we discuss a recent Supreme Court decision that could ultimately impact online wine sales, and a Wine of the Week that we nearly couldn't obtain due to restrictions on such sales.

Have you ever tried to order wine online from an out-of-state retailer and been frustrated?   Perhaps you found a great new wine while on vacation that's not available locally, and although you've found the wine online the retailer can't ship it to your state?   The problem is that only 13 states permit out-of-state retailers to ship direct to their residents.  (The rules are different for wineries, where 43 states allow direct shipments to consumers.)   The result: less competition, less selection and higher prices for the consumer.

The laws governing alcoholic beverages are extremely complex, with different rules at the federal level and in each state.   These laws have not kept up with business practices in the .com era (you can order just about anything except alcohol and have it shipped anywhere).    Some .com retailers have developed partial workarounds in which they maintain a physical warehouse, or have an arrangement with a business partner, in various states to help them ultimately reach their consumers.   But, that doesn't work everywhere, and the solutions often provide less convenience and a limited selection for consumers.

The Supremes.  Last week, the U.S. Supreme Court issued an opinion that could have significant implications for the ability of retailers to ship wine direct to consumers  (Tennessee Wine and Spirits Assn. v. Thomas).  Rarely does the U.S. Supreme Court reach a broad consensus on anything, but here they decided 7 - 2 that a Tennessee law requiring applicants for retail liquor licenses to be state residents was an unconstitutional burden on interstate commerce.   Interestingly, the State of Tennessee knew that the law was flawed and refused to defend it (a trade association of in-state retailers filed the lawsuit).

Briefly, the decision appears to open the door for challenges to state laws that prohibit direct alcohol sales across state boundaries.  While the Court has historically deferred to state alcohol laws, this decision signals that they will no longer do so where the primary impact of the law restricts interstate commerce.  In particular, states laws that permit in-state alcohol shipments but prohibit shipments from out-of-state retailers are unlikely to survive.

That said, don't get ready to place your order quite yet as the court didn't directly address the issue and this will take some time to play out across the U.S.  Now, on to our wine of the week!

Savennières.  No one should have to contemplate reading a Supreme Court opinion completely sober - here, it took 57 pages and a rehashing of over 150 years of history to reach the obvious conclusion.   So, I decided to pop the cork on a bottle of Savennières, a dry white wine from France's Loire Valley that is often called the world’s most “cerebral” wine.   But, I couldn't find the wine in any local retail shop, and although it was readily available through several online retailers . . . they couldn't ship to my state.  Ironic, no?

As it turned out, I did find a 2014 Domaine Baumard  Savennières in a local restaurant ($29 retail . . . if you can find it).   First things first - what the heck is a “cerebral wine"?  That's a wine that is restrained, needs time to open up and takes a while to figure out what it's all about.   You should decant this wine for at least a half hour, and preferably a couple of hours, so that you'll get a full appreciation of its flavors.

Domain Baumard is one of our favorite producers and the wine did not disappoint, although it may not be to everyone's taste.  The wine is made from the Chenin Blanc grape.  On the nose, it had ripe peaches and pears, mineral notes and a touch of citrus.  On the palate, a marked minerality and white stone fruit, as well as a touch of bitterness initially that disappeared as the wine opened up.  This wine was great as an aperitif, but also pairs well with freshwater fish, shellfish, and poultry in a cream sauce.  And, if you're in Boston, it worked well with steamed clams dipped in butter.

Cheers!