Ep 560: Wine Tariffs and their Dire Consequences for American Wine Businesses with Ben Aneff, President of the USWTA and Daniel Posner of Grapes The Wine Company

This episode explores the detrimental effects of wine tariffs on the US wine industry, featuring a discussion between Elizabeth Schneider and her guests, Ben Aneff and Daniel Posner. Against the backdrop of the 25% tariff imposed on still wines from France, Germany, Spain, and the UK in 2019, the conversation delves into the complexities of the three-tier alcohol distribution system in the US. More significantly, the panelists illustrate how these tariffs disproportionately harm American importers, distributors, retailers, and restaurants, despite the fact that the majority of revenue generated from imported wine sales remains within the US economy. For instance, Daniel Posner provides a detailed breakdown of the markup process, demonstrating how a $12 bottle of wine can reach a retail price of $40, with American businesses at each stage of the distribution chain profiting substantially. As the discussion pivots to the issue of industry consolidation, the guests highlight the challenges faced by small producers due to the dominance of large distributors, leading to reduced choice and higher prices for consumers. Ultimately, the episode underscores the interconnectedness of tariffs, industry structure, and consumer behavior, emphasizing the need for advocacy and awareness to mitigate the negative impacts on the entire wine ecosystem.