Greenspoon Marder Hospitality, Alcohol & Leisure Blog: More Tariff Gloom For Wine Lovers?…Maybe Not

Hospitality, Alcohol & Leisure Blog Oct 17, 2019 Miami, FL

Comments on a/b/v and Today’s Tariff Increase

I’m sorry to burden the reader with more talk of tariffs and the doom that is about to fall upon the wine consumer and producer alike, but here goes anyway because the work around is interesting and perhaps plausible.

Tomorrow, the tariff wall is to increase by another twenty-five percent (25%) on a variety of products including Scotch and French wine. The increase will result in higher shelf price of imported French wine from all regions and likely cause pain to producers, US importers, distributors and consumers alike.

This round of tariff increase on French wine is on those with an alcohol content of fourteen percent (14% or less). Much wine imported into the US falls into this category.

The interesting point of discussion is the 14% break-point. Obviously, wines with a higher alcohol by volume content (a/b/a) are excluded from the tariff list. It seems that in days past, the Alcohol and Tobacco Tax and Trade Bureau (TTB) referenced this break-point because wines below 14% were considered table wine, while wines above 14% were considered dessert. Over the years this distinction has become blurred and many a great wine (non-dessert) has an alcohol content above 14%. Consumers have in fact adapted well to increased alcohol contents and their taste profiles and many higher alcohol content wines can be found on the shelf and in the consumers shopping cart.

I suspect that one way of countering increase tariffs is for US consumers to direct their wine purchasing dollars on those French wines above 14%. This will likely benefit the consumer but will still cause dismay to producers, importers and distributors whose portfolios consist of lower alcohol French wine. The potential work-around (in short form) is for French producers to leave the grape on the vine a little longer (and perhaps there are other tactics as well) to increase the alcohol content of previously imported lighter wines taking them out of the tariff category. There is uncertainty surrounding the cost effectiveness and timeliness of the proposed solution but it just may be worth a shot.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

MEDIA CONTACT

Natalie Villanueva, Director of Marketing
954.333.4308 | natalie.villanueva@gmlaw.com

This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

Next Previous

Subscribe to Our
Hospitality, Alcohol & Leisure Blog

Search By Author

Search By Practice Area

Search By State

News

Greenspoon Marder Hospitality, Alcohol & Leisure Blog: More Tariff Gloom For Wine Lovers?…Maybe Not

Share

Subscribe to Our
Hospitality, Alcohol & Leisure Blog

News & Events

News & Events

News

Greenspoon Marder Hospitality, Alcohol & Leisure Blog: More Tariff Gloom For Wine Lovers?…Maybe Not

Share

Subscribe to Our Hospitality, Alcohol & Leisure Blog

News & Events

News & Events

Subscribe to Our
Hospitality, Alcohol & Leisure Blog