Big Wine Event Cancelled by California’s ABC

May 19, 2015 – For the past 14 years, Sacramento has hosted “Grape Escape”, a very popular event held outdoors in downtown Sacramento, organized by the Sacramento Convention & Visitors Bureau.  Last year more than 4,000 attendees enjoyed samples from 40 plus wineries and a dozen breweries.  This year’s event was scheduled for June 6 but it has been cancelled because wineries and breweries are leery of ABC’s enforcement of tied house laws. ABC stands for Alcoholic Beverage Control.

“Tied house” refers to the three-tier system set up at the end of Prohibition in 1933 that enforces a space between the producer (winery, brewery or distillery), the distributor or wholesaler, and the third tier comprising retailers and restaurateurs.  Last year wineries used social media to tell followers to go to Save Mart, the sponsor, to purchase tickets to Grape Escape.  Under the law, alcohol producers are not permitted to promote retailers.

Sounds insane, doesn’t it?  It is a case of unintended consequences, which happen so often when lawmakers and bureaucrats get involved in the private sector.  The law was set up to stop large producers from shutting out small producers in the market place, which was a good intention.  After last year’s event, eight wineries were put on probation for “promoting” retailer Save Mart, a violation of the provisions of the California Business and Professions Code relating to the alcohol industry.  As a result, wineries were frightened away.  Only four signed up for this year’s event leading to the cancellation.  It is a big disappointment for the Convention & Visitors Bureau, the vendors who take part and, of course, the public whose enthusiastic attendance has made this a prominent and popular annual event.

It strikes us as ironic that in the 15^th year of the 21^st century, in the state that leads the world in cutting edge communications, laws written 80 years ago are being applied to a simple notification as to where consumers can buy tickets.  Can this really be considered some kind of collusion between a winery and a retailer?

This kind of thing happens all the time, all over the country.  Time for a little common sense.