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+--- Thread: GEERLINGS & WADE BEING BAD (/thread-2863.html)
- Jerry D Mead - 03-31-1999
//In as self-serving a statement as could be made by any wholesaler trying to protect his monopoly, G&W has issued a press release supporting the Hatch bill which would allow states to use federal law to prosecute merchants and vintners in other states.
For those who are not familiar with G&W, they are basically a chain of direct mail specialists set up to do business in 30-some states. They sell almost exclusively mediocre private label brands from France and California, for which it is impossible for consumers to compare either price or value.
They are in no way a solution for either consumers or small vintners regarding the interstate shipping issue, because of their specializing in low-end private label goods. You are NOT gonna get your Caymus Special Selection from them.
Aside from the fact that this may come back to bite them on the butt (they don't realize that they're getting in bed with folks who want to ban ALL wine shipping, including the intrastate stuff they do), they're self-serving attitude is repugnant.
I doubt many folks here do business with G&W (you're all too sophisticated, I'm sure), but if you are, I'd encourage you to cease and desist and let G&W know just exactly why.
Attached find their release: JDM//
Company Press Release
SOURCE: Geerlings & Wade, Inc.
Geerlings & Wade Announces Support for the
'Hatch Bill'
New Legislation Would Give States Power to Use Federal Courts to Enforce
Laws Against
Illegal Direct Shipping of Alcoholic Beverages
CANTON, Mass., March 30 /PRNewswire/ -- Geerlings & Wade, Inc. (Nasdaq:
GEER - news;
www.geerwade.com), America's leading direct marketer of fine wines and wine
accessories, today announced its
support for a federal legislative proposal that would give states the power
to use the federal courts to enforce laws
against illegal direct shipping of alcoholic beverages. Geerlings & Wade
has operations across the country that sell
wine to consumers in 27 states representing more than 81 percent of the
wine consuming public.
The bill, the Twenty-First Amendment Enforcement Act, was introduced by
Sen. Orrin Hatch (R-Utah) on March
10, 1999 in the U.S. Congress. Informally known as the ``Hatch Bill,'' the
proposed legislation would amend the
Webb- Kenyon Act of 1913 and allow states to enjoin out-of-state shippers
through suits filed in the federal courts.
Hatch's legislation was filed on the same day that the Senate Judiciary
Committee held a hearing on the growing
problem of illegal shipments of alcohol.
Jay Essa, Geerlings & Wade, president and chief executive officer, said,
``First, we want to let our customers and
shareholders know that the Hatch Bill does not pose a threat to our
business because we have always operated
within those state laws that others have tried so hard to circumvent. The
advent of new technologies like the Internet
has made illegal cross-border shipping more prevalent. Many of our
competitors ship across state lines with little or
no regard for the law. There is a right way to operate this kind of
business, and states have every right to insist that
their laws be obeyed in this area.
``When someone orders wine through our toll-free number or via our Web
site, the order is forwarded to our store
located in the state or to one of our stores from where it is lawful to
ship into the state where the customer resides.
While other companies may label their packages as 'oil and vinegar,' we do
not disguise the fact that wine is being
shipped. We also require an adult signature upon receipt of the package.
Our company has been subject to unfair
competition from companies that operate in violation of the law, and we
would like to see that end. Sen. Hatch
should be commended for taking a stand on this issue,'' added Essa.
Under current laws, producers of alcoholic beverages (predominantly
wineries) can sell across state boundaries
directly to consumers in only 12 states. Direct sales of hard liquor are
effectively barred throughout the nation, and
attempts by purveyors of beer to mimic wine's success in the 12- state zone
of trade have failed in large part because
of shipping costs. The explosion of small wineries in the West has also
contributed to the problem of illegal shipping.
As recently as the late 1960s there were fewer than 200 wineries in
California; today, there are more than 800.
This report contains forward-looking statements about the Company's
business and operations and the Company's
future plans and objectives. Forward-looking statements are subject to
risks and uncertainties that could cause the
actual results to vary materially. These risks are discussed in our 1997
Annual Report on Form 10-K filed with the
U.S. Securities and Exchange Commission.
About Geerlings & Wade
Geerlings & Wade, founded in 1986, is America's leading direct marketer of
fine wine and wine accessories with
retail locations in 15 states, home and office delivery to 27 states, and a
devoted following of more than 130,000
regular customers and wine club members. The Canton, Mass.-based company
has developed a unique, streamlined
purchasing system that allows it to source wines directly from the world's
greatest wineries. G&W has cultivated
relationships with hundreds of renowned wineries and negotiants in France,
Italy, Australia, Chile and California.
Consumers can contact Geerlings & Wade at 1-800-782-9463 or on the World
Wide Web at www.geerwade.com.
SOURCE: Geerlings & Wade, Inc.
- amshih - 03-31-1999
I had a little fun with the Geerlings & Wade customer service rep by asking whether they could get me particular, very special bottles from Washington state or Oregon, the kind that I can *only* get through various Internet sources or through direct shipping. After about 5 minutes of hemming and hawing, she finally said she couldn't get the wine for me. I said to her, "Well, that doesn't help me any, does it?"
G&W has a warehouse in each state that they ship to, so all shipments remain intrastate. The problem is, if the wine you want isn't in your state's warehouse, they can't get it for you, period. In their Michigan warehouse, they only carry about 70 wines TOTAL. The only ones I'd be interested in buying are ones that I can already get at my local retailer. This is a solution??
So, I'm writing to their CEO and ranting, just because I feel like it...just call me the "wine b*tch"...
- n144mann - 03-31-1999
Amshih and Curm, I love the way you guys go after these people!! I am ashamed to say I don't know if they even operate in MN.,I have never heard of them before. MN has open shipping, of sorts, so maybe this is not one of their big target areas. Do either of you know?? I would be up for writing a letter or two.
Nancy
[This message has been edited by n144mann (edited 03-31-99).]
- Jerry D Mead - 03-31-1999
G&W does service MN, with Gallo, Geyser Peak and Robert Mondavi second labels at more or less standard price...and a bunch of French "zipcode" wines.
Sure don't want to send them any business, but you can check out their website at: www.geerwade.com
Sign me: G&W's worst nightmare.
- n144mann - 03-31-1999
Thanks Curm, and yes I will check out the web site. Have to know whats going on before I can write. [img]http://www.wines.com/ubb/smile.gif[/img] As for doing business with them, don't worry!! Not this gal! My shipping rights are puny enough already, don't need to support someone who seems to want to reduce them farther, besides if I want crummy labels, I can get them at my retailer.
Nancy
[This message has been edited by n144mann (edited 03-31-99).]
- Bucko - 03-31-1999
Thanks for any help, Nancy. It seems that a lot of wine lovers are pretty passive and just accept what comes down the pike. I write *everyone* who tries to slip some nonsensical fertilizer pass me. I also contribute to the Coalition for Free Trade, who have fought a pretty good fight so far.
Bucko
- vitis - 04-01-1999
Here in Ct. we are most familiar with Geerlings and Wade, as we were one of the first states they expanded into. What I have found interesting about them is how well they have worked within the framework of each states laws. Also, you have to give them credit for their newsletters, I am convinced that their cheesy spiels are responsible for selling a lot of boxes of bulk wine.
In Ct. G&W would clear wine through some of the wholesalers, who would then send wine to their location for intrastate shipping. Oftentimes, there would be extra wine, and the wholesaler would try to sell it to retailers. The unwitting retailers then added their markup, only to look like gougers to G&W customers. When the retailers got wind of this, the wholesalers caught some serious wrath. Thus the wholesale clearing dried up quite rapidly.
- RickBin389 - 04-02-1999
Jerry,
this is really just the tip of the iceberg, we ALL need to write our respective gov.'s & state reps to inform them that they are being guided by the very vocal minority.(distributers - that is). Those of us in the business should be working diligently with our local restaurant association chapters (we pay them to lobby for this kind of stuff on our behalf). And, Jerry, as the pen is mightier than the sword we need continued press coverage ( by you & your peers)offering a reasonable solution to this B.S..
p.s.... can't help but wonder how many Land's Ends, Dell's & Williams Sonomas are silently watching this debacle unfold. Wether they like it or not, they are on deck.
p.ss....Jesse the body vs. G.W.???- we could charge admission for this Nancy!
[This message has been edited by RickBin389 (edited 04-02-99).]
- Jerry D Mead - 04-02-1999
Rick...Unless your restaurant trade assoc is different than most...they're in bed with the wholesalers. The thinking being that as combined forces they can get anything they want...plus they know the wholesalers spend more money and have more clout than they do.
In AZ, for example, the wholesalers supported a law banning corkage in exchange for the restaurant assoc getting behind whatever abuse they were passing that year...franchise maybe?
Besides, most restaurateurs don't give a fig about direct shipments to consumers.
JDM
- Thomas - 04-03-1999
Just want everyone to know (Curm knows) that I write a few wine columns. The next one will expose G & W's tactics.
- n144mann - 04-04-1999
Now there you go Rick, what an idea.....I heard he punched some guy on the steps of the capital building....why not put him in the ring!! [img]http://www.wines.com/ubb/biggrin.gif[/img]
As strange as Gov. Ventura ( gosh that still sticks in my throat!! ) is, he is against big government and un-needed regulations and will not be a likely one to sit still for something like this. But I have not heard his position on this particular issue, so will have to write and see if I can get one of his flunkies to answer me. If he falls on the wrong side will give him the facts.
Nancy
[This message has been edited by n144mann (edited 04-04-99).]
- amshih - 04-05-1999
I can't believe I'm so dense sometimes -- when I saw this blurb on Wine Investment News, plus the timing of the G/W press release, it seems like G/W is in trouble as a company and is trying to fight off competition and increase its stock price any way it can. I think they know that they will go out of business otherwise, especially if Naxon does come onto the scene (they certainly can't compete with their 6-bottle minimum order and their meager selection).
Geerlings & Wade: Swimming in Shark Infested Waters
WSWA Throws Support Behind Naxon
GEER's slumping share price (4-17/32 on Mar.12 after closing 1998 at 9-3/16) will probably not get any help from the uncertainty created by news that at least two companies - one a $35 million Kleiner Perkins start-up with financial support from the WSWA - say they're building systems to offer thousands of wines directly to consumers in every state -- and to do it in a totally legal manner. (news report 03/12/99)