Wine Imports Legislation

The attempt by state Sen. Ralph Dills (D-Gardena) to cut off bargain-priced imported wines and to force all beer to be sold through exclusive territorial contracts points up a major problem in California.

Dills’ two bills will hurt small wine and beer wholesalers. They will hurt large and small retailers, as well as bars and restaurants. All of these retail businesses will have to pay higher prices to the few major wholesalers who will be left in business and these higher prices will be passed on to the consumers.

We estimate the cost for beer in California will be increased at least $64 million and could run as high as $400 million more per year.

These proposals would make the current competition in wine imports a crime. Consumers will have to pay higher prices and pay higher taxes to enforce the laws, which increase the cost of their wine and beer. By eliminating competition consumers will pay a hidden tax to these private businesses.

The problem is that Dills is sponsoring and other legislators are voting for laws that will hurt most of their constituents and create extra profits for a few powerful beer and wine wholesalers, brewery owners and wine makers. This problem will continue as long as state senators and Assembly members feel they can go off to Sacramento and vote against the people who elected them and not suffer the political consequences.

HARRY SNYDER

San Francisco

Snyder is director of the West Coast office of Consumers Union of U.S. , Inc.