What Washington Retailers & Businesses Say About Three-Tier System

• Retailers' & Producers'

What Washington Retailers and Producers Say About the Three-Tier System

"Smaller breweries and smaller wineries tend to benefit from Washington’s current three-tier system as it provides an established network to market and distribute their products. It would be logistically difficult for smaller producers to duplicate that network on their own, and the cost could be prohibitive. Further, the three-tier system’s prohibits larger retailers from using their huge purchasing volume to wring price concessions and other special terms from smaller breweries and wineries, which helps these small businesses keep their prices at a level that is profitable.

Consumers benefits from the three-tier system, too. If the three-tier system were eliminated and out-of-state producers could sell directly to retailers – something in-state producers can do now – I think consumers would find far fewer choices on the shelf."

Paul Shipman, founder of Redhook Brewing Company
Seattle, Washington

"Washington's current distribution system is the most efficient way to keep my store fully stocked with the variety of wines my customers demand. If Costco prevails, and the current system goes away, the choices available to my customers will diminish significantly."

Chuck LeFevre, owner of Esquin Wine Merchants
Seattle, Washington

"Washington State's three-tiered distribution system allows our business to compete with the bigger retailers and lets us offer an extremely wide and diverse selection of wines."

Barb & Lonnie Schott, owners of The Grape Escape Wine Bar & Shoppe
Bellevue, Washington

"I don't know what a small business like ours would do without the existing distributor system. We count on distributors to get our product to market – it’s simply not something we can do ourselves. Having a system that supports having more distributors rather than less is good for us because it leaves the door open for us to branch out and try new ones. We actually did this recently, and it’s a good example of how the system helps small producers. I wouldn’t want to see the three-tier system dismantled and the number of available distributors go down."

Mary Ann and Gene Bliesner, owners of Snipes Brewery
Yakima, Washington

"Washington's three-tier system helps small wineries like mine thrive. The system's uniform pricing structure gives us a level playing field so our products can compete with the bigger wineries and get a fair price with all retailers. If Costco wins and the current protections for smaller businesses are eliminated, I'm afraid we'll see a domino effect; what's to stop other big box stores like Wal-Mart from coming in and requiring massive quantities at deep-discount prices? This could shut out small wineries like mine."

David Huse, owner of Five Star Cellars
Walla Walla, Washington

Contact us at phil@wbwwa.com
915 Trosper Rd., Suite #102, Tumwater, WA 98512
Voice: 360-352-5252 | Fax: 360-943-9784
© 2004



• Retailers' & Producers' Response to Lawsuit • WBWWA's Response to Lawsuit • 21st Amendment • Media Coverage		What Washington Retailers and Producers Say About the Three-Tier System "Smaller breweries and smaller wineries tend to benefit from Washington’s current three-tier system as it provides an established network to market and distribute their products. It would be logistically difficult for smaller producers to duplicate that network on their own, and the cost could be prohibitive. Further, the three-tier system’s prohibits larger retailers from using their huge purchasing volume to wring price concessions and other special terms from smaller breweries and wineries, which helps these small businesses keep their prices at a level that is profitable. Consumers benefits from the three-tier system, too. If the three-tier system were eliminated and out-of-state producers could sell directly to retailers – something in-state producers can do now – I think consumers would find far fewer choices on the shelf." Paul Shipman, founder of Redhook Brewing Company Seattle, Washington "Washington's current distribution system is the most efficient way to keep my store fully stocked with the variety of wines my customers demand. If Costco prevails, and the current system goes away, the choices available to my customers will diminish significantly." Chuck LeFevre, owner of Esquin Wine Merchants Seattle, Washington "Washington State's three-tiered distribution system allows our business to compete with the bigger retailers and lets us offer an extremely wide and diverse selection of wines." Barb & Lonnie Schott, owners of The Grape Escape Wine Bar & Shoppe Bellevue, Washington "I don't know what a small business like ours would do without the existing distributor system. We count on distributors to get our product to market – it’s simply not something we can do ourselves. Having a system that supports having more distributors rather than less is good for us because it leaves the door open for us to branch out and try new ones. We actually did this recently, and it’s a good example of how the system helps small producers. I wouldn’t want to see the three-tier system dismantled and the number of available distributors go down." Mary Ann and Gene Bliesner, owners of Snipes Brewery Yakima, Washington "Washington's three-tier system helps small wineries like mine thrive. The system's uniform pricing structure gives us a level playing field so our products can compete with the bigger wineries and get a fair price with all retailers. If Costco wins and the current protections for smaller businesses are eliminated, I'm afraid we'll see a domino effect; what's to stop other big box stores like Wal-Mart from coming in and requiring massive quantities at deep-discount prices? This could shut out small wineries like mine." David Huse, owner of Five Star Cellars Walla Walla, Washington
		Contact us at phil@wbwwa.com 915 Trosper Rd., Suite #102, Tumwater, WA 98512 Voice: 360-352-5252 \| Fax: 360-943-9784 © 2004