preferred links) also seems issue seems to be heating up IT IS IMPOSSIBLE TO SAY WHAT THE FUTURE HOLDS less problematic from a in the industry, much as it did FOR DTC SALES AND SHIPMENTS OF SPIRITS, BUT regulatory perspective when for wine a decade ago. THE ISSUE SEEMS TO BE HEATING UP IN THE dealing with an unlicensed third party provider instead of a retailer. Of INDUSTRY, MUCH AS IT DID FOR course, there is still some tied house risk Marc E. Sorini is a partner in the law firm WINE A DECADE AGO. associated with a distiller’s contemplated of McDermott Will & Emery LLP, based in the Firm’s Washington, D.C. office. He leads involvement with a third party provider, and the Firm’s Alcohol Regulatory & Distribution a distiller should carefully evaluate these 2017, the campaign had raised over Group, where he concentrates his practice risks if considering getting involved in the on regulatory and litigation issues faced by $19,000. e-commerce channel. supplier-tier industry members. His practice for Although $19,000 is a very small amount craft distillers includes distribution agreements, of money when considering the expense of distribution counseling and litigation, spirits CURRENT LITIGATION INITIATIVE litigation, particularly the potential scope of formulation, labeling, promotional compliance, the litigation this campaign contemplates, As a final point, although state restrictions compliance strategy, and federal and state tax the primary fees relating to the litigation on DTC sales and shipments remain lawful, and trade practice enforcement defense. would be contingent on a successful civil currently the American Distilling Institute Bethany K. Hatef is an associate in the law firm rights lawsuit under federal law (which is supporting a campaign to bring a legal of McDermott Will & Emery LLP, based in the provides for the recovery of attorney’s fees). challenge aimed at striking down state laws Firm’s Washington, D.C. office. She is a member To represent them in the planned litigation, prohibiting DTC shipments of spirits. This of the Firm’s Alcohol Regulatory & Distribution Group, where she concentrates her practice on the parties have hired an attorney heavily effort is being led by Doug Stone of Fora wide variety of regulatory and distribution involved in wine direct shipping litigation Lovers LLC, an online retailer of whiskey, issues involving alcohol beverage suppliers. Her that ultimately led to the Granholm as well as two small distillers. The parties practice includes counseling on distribution decision. At this preliminary stage, it is conducted a crowdfunding campaign relationships, trade practice compliance, and impossible to say what the future holds for that sought $15,000 for costs and fees alcohol regulatory and distribution risks DTC sales and shipments of spirits, but the relating to the litigation effort. As of May 3, associated with corporate transactions.
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