Pheasant Court Winery Sues Iowa on Shipping Laws

Pheasant  Court Winery, Philomath, Ore., sued the State of Iowa, saying a law that allows in-state wineries to sell directly to restaurants and liquor stores but requires out-of-state wineries to use a distributor is unconstitutional.

"The prohibition against self-distribution by out-of-state wine producers discriminates against out-of-state entities, protects the economic interests of Iowa wholesalers, and shields Iowa wineries from interstate competition in violation of the Commerce Clause of the United States Constitution," says the complaint recently filed in federal court.

Self-disribution allows a winery to sell its wine even if it cannot find a willing wholesaler, to maintain control of its pricing, marketing and delivery decisions – and to avoid the wholesaler's fees, the attorney for Pheasant Court says..