Wine lovers need not panic about tax on European whites

Though the U.S. plans to impose a 200-percent tax on white wines imported from the European Economic Community, it’s still not time to panic and stock the cellar with French wines.

After conversations with many distributors and brokers throughout the country, it seems the effects, if any, will be varied.

Maine consumers might see price increases in these European whites but not for at least eight months. The way that European wines are brought into this state is generally by boat to the larger ports such as Boston or New York, and then they ship by rail or truck to Maine. Large freighters full of cases of wine are only shipped during the warmer months. Generally no wines are shipped between the months of January through March for fear they will freeze in the holds of the ships. And because Maine is such a seasonal state in terms of its wine sales, distributor purchases are usually coordinated to bring these containers in the spring.

To keep consumers supplied through the holidays, large fall purchases are made from European brokers around September and October. This also provides a buffer into the next spring to start seasonal businesses with their inventory.

The real challenge here is in the spring when distributors have to arrange their purchases for the summer. Because orders for the summer are actually placed in February and March, prices of European wines will depend on where we are in the tariffs and trade negotiations at that point. The motivation of any distributor or retailer who raises prices globally on European wines from now until then should be suspect.

As far as the Maine consumer is concerned, there will always be wine bargains from around the world of comparable quality to the European wines. This is a direct reflection of the portfolio of many distributors who will suffer little, if any, as a result of this impending tax. They can always lower their inventories based on the lack of consumer demand.

The real effects of this menacing tax will be felt most by importers who specialize in European wines. Even though much of the world looks upon wine as taboo and sinful, the jobs held by people in the importing businesses are very real. The ultimate effect could put more people, many who have dedicated their lives to their businesses, out of business.

Over the past several years, the wine industry has taken many blows. From the Italian wine scandal of the early ’80s to the “sin taxes” of the ’90s, as well as labeling laws and the replacement of so-called lead capsules (which are actually made from tin) with plastic. The irony here is that what is in the bottle has not changed in thousands of years; the only thing that has changed is the politics.

I am reminded of a quote from California vintner Robert Mondavi: “Wine has been with us since the beginning of civilization. It is a temperate, civilized, romantic mealtime beverage. Wine has been praised for centuries by statesmen, philosophers, poets and scholars. Wine in moderation is an integral part of culture, heritage and the gracious way of life.”

Chris Plumstead is a free-lance wine writer who lives in Newburgh.