If you thought that the most significant wine region for New York wholesalers would be Bordeaux, Burgundy or perhaps Tuscany, you’d be wrong…… it’s actually New Jersey! Now, I’m not saying that New Jersey has suddenly been discovered as the latest new wine producing area, but it is the centre of nearly all warehousing for imported wines sold in New York.

The majority of New York wholesalers store wine in New Jersey for economic reasons, space is cheaper, as well as being logistically more efficient. The warehouses receive imported wines directly from shipping piers and also provide quick deliveries into New York City. There is simply no other location in the immediate area that offers this facility.

So, what’s causing the problem? Well, the problem is actually very significant indeed, as a proposed change in the law threatens to put many New York wholesalers and distributors out of business!

An amendment before the New York Senate would require all wines entering the State to be stored for a period of at least 48 hours before they can be distributed. In other words you would need warehousing located somewhere in New York State itself to store your wine before you can sell it, and the vast majority of wine companies simply don’t have this. It is alleged that there are two very big wine companies behind this proposed change, who, certainly not by coincidence, have their own In-State warehousing. Hence the smaller wholesalers are claiming that it is simply an attempt to drive them out of business. 

The apparent logic behind this move is that many of the States surrounding New York (e.g. New Jersey, Connecticut) have laws which require that alcohol shipped into the State from Out-of-State suppliers be shipped to a licensed wholesaler within the State and maintained at a premises operated by such wholesaler for a minimum period of time – commonly referred to as “at-rest” laws (the 48 hour period mentioned above). This requirement from States bordering New York, clearly puts New York businesses who wish to ship to neighbouring States at a competitive disadvantage (not that wine ever really passes in this direction). This legislation simply establishes a reciprocal “at-rest” provision of law, or so they claim.

If you thought that the most significant wine region for New York wholesalers would be Bordeaux, Burgundy or perhaps Tuscany, you’d be wrong…… it’s actually New Jersey! Now, I’m not saying that New Jersey has suddenly been discovered as the latest new wine producing area, but it is the centre of nearly all warehousing for imported wines sold in New York.

The majority of New York wholesalers store wine in New Jersey for economic reasons, space is cheaper, as well as being logistically more efficient. The warehouses receive imported wines directly from shipping piers and also provide quick deliveries into New York City. There is simply no other location in the immediate area that offers this facility.

So, what’s causing the problem? Well, the problem is actually very significant indeed, as a proposed change in the law threatens to put many New York wholesalers and distributors out of business!

An amendment before the New York Senate would require all wines entering the State to be stored for a period of at least 48 hours before they can be distributed. In other words you would need warehousing located somewhere in New York State itself to store your wine before you can sell it, and the vast majority of wine companies simply don’t have this. It is alleged that there are two very big wine companies behind this proposed change, who, certainly not by coincidence, have their own In-State warehousing. Hence the smaller wholesalers are claiming that it is simply an attempt to drive them out of business. 

The apparent logic behind this move is that many of the States surrounding New York (e.g. New Jersey, Connecticut) have laws which require that alcohol shipped into the State from Out-of-State suppliers be shipped to a licensed wholesaler within the State and maintained at a premises operated by such wholesaler for a minimum period of time – commonly referred to as “at-rest” laws (the 48 hour period mentioned above). This requirement from States bordering New York, clearly puts New York businesses who wish to ship to neighbouring States at a competitive disadvantage (not that wine ever really passes in this direction). This legislation simply establishes a reciprocal “at-rest” provision of law, or so they claim.