GEERLINGS & WADE BEING BAD

[Jerry D Mead]

//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.