Amazon Shelves Wine Plans
Last week, Amazon.com made the decision to close up shop on its much anticipated online wine program even before its unveiling. After preparing for more than two years for its inaugural launch, both the Wall Street Journal and Winebusiness.com have each reported that all of the affiliate winery partners that were expected to participate in the company’s pilot program each received an e-mail communication from Amazon stating that it has decided “not to resume shipping”.
The correspondence further stated:
“As you know, we [Amazon.com] were excited to work with you to build the Amazon Wine business…For that reason, this was a very tough choice for us…Many of you took the time and leap of faith to really support us.”
According to both articles, the logistics of launching the company’s wine pilot program turned out to be a regulatory nightmare that ultimately proved too difficult for the online retailing giant to overcome.
In addition, The Wall Street Journal’s report further indicated that the end of the program may have been related to financial troubles that plagued its partner New Vine Logistics, which was to be in charge of handling all of the shipping arrangements for Amazon. Over this past summer, New Vine Logistics suspended operations amid financial concerns, but then later received a new investment from Inertia Beverage Group.
In the end, this was an unfortunate premature closure to a market segment that Amazon.com was obviously very excited about tapping into. But it was also a disappointing blow dealt to many wine consumers who are still not able to legally choose how they wish to purchase wine, just like any other consumer product that can be purchased over the internet. To this point, until there is a revision made to Section 2 of the 21st Amendment, many wine consumers will have to continue to buy their wine the old fashioned way!
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