Background
Granholm v. Heald was the conclusion of an eight-year fight by small wineries against these laws. Although direct shipments to consumers constituted only about 2% of wine sales in the United States (whose total sales were $21.6 billion in 2003), direct sales were thought to be an opportunity for growth. Laws in some unspecified eight states varied, but typically a winery could distribute wine only by selling it to a wholesaler in the state. Retailers were then required to purchase from the wholesalers. This made the large wholesalers very powerful in the wine industry; if wholesalers in New York decided not to purchase wine from a particular winery, then that winery would be completely shut out of the New York market.
Read more about this topic: Granholm V. Heald
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