Report: Illinois Alcohol Wholesalers Lead the Nation in Political Contributions

According to a new report issued today by the Specialty Wine Retailers Association, Illinois alcohol wholesalers contributed $5,731,776 to state political campaigns between 2000 and 2006, more than wholesalers in all other states, save Texas. In addition, the report, entitled “Wholesale Protection”, found that Associated Beer Distributors of Illinois contributed more to political campaigns in Illinois than any other entity in any state between 2000 and 2006, while the Wine & Spirit Wholesalers of Illinois were eighth on the list of top state campaign contributors.

On a nationwide basis the report shows that in the time period considered American alcohol wholesalers contributed $50 million to state political campaigns, far and away out contributing other sectors of the American alcohol industry including wineries, beer producers and retailers — combined.

“As in most other states, alcohol wholesalers in Illinois enjoy a privileged status that many consider a monopoly,” said Tom Wark, Executive Director of the Specialty Wine Retailers Association. “By state-mandate, the vast majority of wine must flow through a wholesaler’s company before it reaches the retailer, thereby helping to create the kind of enormous profits that allow the industry to contribute nearly $6 million to Illinois politicians.”

In 2007 Illinois alcohol wholesalers were able to push through legislation that stripped Illinois consumers of their long-held right to purchase wine from out-of-state retailers and have it shipped to them, a policy that will severely limit the kind of competition wholesalers face while giving consumers less access to wine and leading to higher prices. Wholesalers were also able to convince legislators to force Illinois’ larger wineries to sell their product to wholesalers instead of directly to retailers as they have been able to for years, a move that only aids wholesalers while reducing profits for wineries. This legislation is unconstitutional, and may be challenged in Federal Court in 2008.

“No one disputes the alcohol wholesalers’ right to participate in the political process, but when the results of their participation leads to the detriment of consumers and other members of the industry it is time to consider the circumstances surrounding their involvement,” says Wark.

The specialty Wine Retailers Association have made the “Wholesale Protection” report available to the public at their website: http://www.specialtywineretailers.org/documents.html. The report looks at total contributions by alcohol wholesalers from 2000 to 2006 on a state-by-state basis, as well as identifies the largest contributors in each state.

Specialty Wine Retailers Association is a nationwide organization of wine merchants organized to advocate on behalf of retailers and consumers for fair, constitutional laws concerning alcohol distribution and direct-to-consumer sales. Through lobbying and litigation SWRA seeks to legally provide US consumers with the wine they want from wherever it is available.