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July 2005
What The Direct Shipment Ruling Means for Retailers
If the pending federal district court case Costco Wholesale Corp. vs. Hoen is successful, it could put U.S. retailers within self-distribution reach of all wineries.
by R. Corbin Houchins
By now, it is well known that the Supreme Court opinion in the Granholm case1 did not require states to allow direct shipment, but only to deny or grant it on economically equivalent terms to both in-state and out-of-state wineries. More complicated, and of potentially greater importance to the industry, is the effect of Granholm on Costco Wholesale Corp. vs. Hoen, now pending in the federal district court in Seattle. Unlike the direct shipment cases, Costco directly challenges mandated middl...
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