Tariffs last chance

originally posted by Robert Dentice:
originally posted by VLM:

This is the true situation for most producers. Maybe 90%+.
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I would not say 90%. Jon Bonne's letter does a great job of showing that the tariffs will hurt the U.S. side of the equation far more than the producer side in France due to global non-U.S. demand.

I know Germany the best and many of the producers I love could easily sell all of their production in Germany let alone other countries. I think we would be surprised at how little many producers need the U.S.

The devastating impact will be hardest on U.S. importers / distributors / retailers / restaurants etc.

This will certainly hurt some growers.
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Yeah, Jon's was a good letter. I'm sure you're right about a lot of tiny producers and those with diverse export markets but I think you'd be surprised by how many will have a really difficult time shifting if the US represents a large percentage of their market.

Obviously, my number is made up but I think that almost every vigneron I know will have a hard time shifting that much wine to other markets. I think it'll hurt a lot more people than we would otherwise think because we happen to like the wines so much we don't understand how selling them to other markets would be difficult. Over the holiday I heard about some that really surprised me hence my sense of foreboding bordering on panic for folks I care about.
 
originally posted by Christian Miller (CMM):
originally posted by VLM:
totally fragged by the shrapnel of all this stupidity.
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The essence of this administration's foreign relations.
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Yeah, I think the only good that can come out of this is that Republicans can't hide anymore. We all knew who and what they really were, but now it's all out in the open. There is no going back.
 
originally posted by VLM:
originally posted by Christian Miller (CMM):
originally posted by VLM:
totally fragged by the shrapnel of all this stupidity.
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The essence of this administration's foreign relations.
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Yeah, I think the only good that can come out of this is that Republicans can't hide anymore. We all knew who and what they really were, but now it's all out in the open. There is no going back.
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Hard to change a rigged game.
 
In Brazil wine import tariffs amount to 215%, part of the reason why we left. At rates like that, wine consumption becomes a rich person's hobby, since producers of the few domestic alternatives (and importers of south American wines that carry lower tariffs) peg their prices just a hair below the foreign ones. A significant wine scene still exists, but it's very socially distorted.
 
originally posted by Oswaldo Costa:
In Brazil wine import tariffs amount to 215%, part of the reason why we left. At rates like that, wine consumption becomes a rich person's hobby, since producers of the few domestic alternatives (and importers of south American wines that carry lower tariffs) peg their prices just a hair below the foreign ones. A significant wine scene still exists, but it's very socially distorted.
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For the curious, what are the tariffs for the various other South American countries?
 
originally posted by Christian Miller (CMM):
originally posted by Oswaldo Costa:
In Brazil wine import tariffs amount to 215%, part of the reason why we left. At rates like that, wine consumption becomes a rich person's hobby, since producers of the few domestic alternatives (and importers of south American wines that carry lower tariffs) peg their prices just a hair below the foreign ones. A significant wine scene still exists, but it's very socially distorted.
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For the curious, what are the tariffs for the various other South American countries?
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Last time I checked Brazil charged 30% for wines imported from Mercosul countries (Argentina, Uruguay and Paraguay; and they call it a free trade zone) and 55% for wines imported from Chile, which is an associate member.
 
The list of people scheduled to testify earlier this week. Unclear to me if all managed to testify as half an inch of snow was anticipated in the suburbs and so the heating might have been cut short.

PANEL 1 1. Sam Rizzo, Information Technology Industry Council 2. Rachael Stelly, Computer & Communications Industry Association 3. Gary Sprague, Baker & McKenzie 4. Marianne Rowden, American Association of Exporters and Importers

PANEL 2 1. Faye Gooding, Le Creuset of America 2. Joanna Rosenberg, Zwilling J.A. Henckels & Staub 3. George Kakaty, Bernardaud NA, Inc. 4. Nate Herman, American Apparel & Footwear Association (AAFA)

PANEL 3 1. Jeff Zacharia, National Association of Wine Retailers 2. Richard Blau, Sokolin LLC 3. William Tomaszewski, Wine.com 4. Benjamin Aneff, Tribeca Wine Merchants 5. David Waldenberg, BNP Distributing Company

PANEL 4 1. Peter Weygandt, Weygandt-Metzler Importing, Ltd. 2. Michelle DeFeo, Laurent-Perrier US Inc. 3. Annette Peters, Domains and Appellations & Bourget Imports 4. James Federico, VINTUS 5. Barkley Stuart, Southern-Glazer's Wine & Spirits 6. Jenny Lefcourt, Jenny & Francois Selections

PANEL 5 1. Philip Burkhart, Latitude Wines 2. Eric Faber, Cutting Edge Selections 3. Timothy Gagnon, Selection Masscale 4. Michael Daniels, Vintage 59 5. Mary Taylor, Mary Taylor Wine 6. Christy Frank, Copake Wine Works

PANEL 6 1. David Bowler, Bowler Wine 2. Edward Swain, Devenish Wines 3. Geoffroy Ducroux, Avant Garde 4. Lyle Fass, Fass Selections 5. Eben Lillie, Chambers Street Wine

PANEL 7 1. Peter Vitaliano, National Milk Producers Federation 2. Antoine Marsot, INTERVALexport 3. Emily Lyons, Cheese Importers Association of America 4. Philip Kafarakis, Specialty Food Association 5. Thomas Gellert, Gellert Global Group 6. Jessica Wasserman, Bel Brands USA 7. Mark Baumgarten, Materne North America
 
originally posted by maureen:
The list of people scheduled to testify earlier this week. Unclear to me if all managed to testify as half an inch of snow was anticipated in the suburbs and so the heating might have been cut short.
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I don't know if the hearing was cut short, but certainly early testimony went long. I believe later speakers were asked to come back the following day or given the option of testifying by phone/skype.
 
originally posted by maureen:
The list of people scheduled to testify earlier this week. Unclear to me if all managed to testify as half an inch of snow was anticipated ...
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A 1/2 inch of snow shutting things down?

Sorry, I have to laugh.
 
originally posted by MarkS:
originally posted by maureen:
The list of people scheduled to testify earlier this week. Unclear to me if all managed to testify as half an inch of snow was anticipated ...
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A 1/2 inch of snow shutting things down?

Sorry, I have to laugh.
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Government efficiency!
 
A helpful way to think about wine in America with the three-tier system that was put in place post prohibition is as an ecosystem. European wine is the keystone species of this ecosystem. It is the primary category that drives sales for nearly every importer, distributor, retail shop and restaurant you know.

I've had an incalculable number of people trying to virtually high five me thinking this would be a boon for domestic wineries. Well, everyone one of my distributors in other states has told me they would essentially be out of business within months of the tariffs taking effect.

I am prohibited from selling wine to restaurants and retailers in other states by the three tier system. It's not hyperbolic to say this would be a mortal threat to myself and nearly every winery I know. None of us have the means to survive a multi month/year re-organization of how we sell our wine. Wine club just ain't gonna do it, y'all. (even with the monogrammed fleece vests we were planning on rolling out in 2020.)

Honestly, if you love wine this is the worst thing to happen in your lifetime. The landscape will be unrecognizable a year from now.

If you love friends (in the wine industry) with livelihoods this is one of worst things that will happen to them in their lifetimes. I realize I'm ITB but I personally know dozens of people who's business will have to close within months.

Reach out if you're inclined to want to do something but aren't sure how to act.

Also, delete facebook.
 
originally posted by Joe Cz:
originally posted by MarkS:
originally posted by maureen:
The list of people scheduled to testify earlier this week. Unclear to me if all managed to testify as half an inch of snow was anticipated ...
Click to expand...

A 1/2 inch of snow shutting things down?

Sorry, I have to laugh.
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Government efficiency!
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This has nothing to do government efficiency and everything to do with the fact that, where driving and snow is concerned, DC is a southern city. It doesn't believe it will get snow, its snow removal plan is Spring and DC drivers don't know how to drive in snow and don't think they should have to learn. I've lived here for over 35 years and such it has always been, under Democratic presidents and Republican ones, under corrupt mayors and efficient ones.
 
This is true except for laying the blame on the DC drivers. It's the Virginia and Maryland plates you need to keep a wide berth of when there's a snowflake on the ground.
 
originally posted by Joe Cz:
originally posted by MarkS:
originally posted by maureen:
The list of people scheduled to testify earlier this week. Unclear to me if all managed to testify as half an inch of snow was anticipated ...
Click to expand...

A 1/2 inch of snow shutting things down?

Sorry, I have to laugh.
Click to expand...

Government efficiency!
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It's a DC tradition - amounts of snow that might not even be noticed in New England cause everything to grind to a halt. Don't know if it's the same in Baltimore, or further south.
 
Just to give you a flavor for how DC handles snow, during this most recent 1/4 inch coating of snow during the testimony, my son was already at school having a normal school day, and once the news hit that there was going to be 1/4 inch of snow, we were asked to come pick up our children so the school could close early for the day even though not a single snowflake had yet fallen from the sky. I grew up in the Chicago suburbs, so from my perspective that is not even enough snow to bother putting on a jacket to go outside.

Also, fuck these tariffs.
 
Comment: The Honorable Robert Lighthizer

U.S. Trade Representative

Executive Office of the President

600 17th Street, NW
Washington, DC 20006

Re: Opposition to Tariffs on Imported Wine from the European Union

Dear Ambassador Lighthizer:

I am writing as a commercial meadery owner and buyer of both domestic and imported wines. I do believe that competition between international aircraft manufacturers should be fair and equitable. It does not seem fair or wise to involve the wine industry in that trade dispute. I oppose the imposition of tariffs on imported wine.

A robust and highly-functioning system of wine importers, distributors and retailers is critical to every aspect of the retail chain through which we sell our products. It is in the interest of my business and its employees to keep our retailers sound and healthy. It is also important to us to keep the new European markets into which we are now sending our meads free of retaliation for US tariffs. We have only just begun to market our meads throughout Europe. Just as we hope to keep the aircraft industry free of impediments to US business success, we also hope to keep our efforts free of barriers to our continued expansion.

I do understand that the proposed tariffs are limited, but it is also clear that the pattern here is one of escalation. Please nip this in the bud.

Yours,

Ken Schramm
Owner
KDS, LLC
Schramm's Mead
www.schrammsmead.com
327 West Nine Mile Rd. (Tasting)
914 Livernois St. (Production)
Ferndale, MI 48220
248-439-5000
248-439-5005 (FAX)
Owner: Schramm’s Orchards, LLC
496 East Avon Road
Rochester Hills, MI 48307
Author: The Compleat Meadmaker
©2003, Brewers Publications
 
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