NABI: Jackson Family Wines CEO Wrong on Need for Tariff Protection

National Association of Beverage Importers delivered a strong rebuke to Jackson Family Wines CEO Rick Tigner who recently told a meeting of local and community leaders in Santa Rosa trade barrier protections for domestic wine is needed.

His statement is “surprising and more so troubling,” said Robert M. Tobiassen, NABI president.  Tobiassen’s full statement:

“Without a doubt, consumer choice is unbelievably enhanced by imported distilled spirits, wine, and beer.  Consumers experience the world from the comfort of their homes and favorite drinking establishments.  From the design of labels and bottles to consumer tastings/ samplings at retail establishments, and consumer advertising specialties for take away by the consumer at retail establishments, the brands and varieties of imported distilled spirits, wine, beer educate us about the world.   Pure authenticity telling consumers the story of their drinks.”

“More than 12,000 importer basic permit holders from TTB source almost a hundred thousand of brand names for American consumers and their enjoyment.  Trade enhances consumer choice in the United States which is the largest consumer driven marketplace in the world.

“Rather than discourage consumers from enjoying imported distilled spirits, wine, and beer, the domestic wineries should up their efforts on exports and enhance its promotional activities to attract consumers.  Creating an artificial and anticonsumer choice domestic demand by restraining imported products is not the answer.  No one wins from the current saber rattling over tariffs by both the United States and European Union.  Global trade benefits all—consumers. Growers of grapes, hops and grains, producers, exporters, importers, distributors, and retailers.  It enhances peace and prosperity as was envisioned in the Post-World War II international model of a global trading order.2

“Tigner argues that other countries impose tariffs or duties hurting American wines entering those markets so the United States is justified in imposing the same on imported wines.  Why should American consumers pay more for other countries’ bad decisions?  In the United States, we fight these foreign market trade barriers by working to remove them and not by adopting them.

“Consumers demand for the availability of imported distilled spirits, wine, and beer is indisputable.   For fiscal year 2018, TTB approved 185,072 certificate of label approvals (COLAs) of which 86,958 represented domestic products and 98,114 represented imported products.  Consumer “pull” in the marketplace caused this.  Clearly consumers are looking for the diversity and variety of imported products to enjoy.  No tariff or non-tariff trade barrier should be erected by the domestic industry to tell consumers that they cannot have what they want at the most competitive pricing.

“A rising tide raises all ships—both imports and domestics.  Consumers sail better on this tide of brand choice, variety, and opportunity to experience the enormous diversity of distilled spirits, wine, and beer from both fine American producers and world producers.  Consumers deserve nothing less,” Tobiassen said.

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