Ana Lastra
The Moore Monitor Media Platform
07/31/11
The debate on Oklahoma’s alcohol laws has created quite a controversy, not only with residents but also with producers, distributors and legislators.
Tom Knotts, owner of Redbud Ridge Vineyard and Winery has been in the wine business since 2002 when he first bought the property back when it was easy for wine makers to run a winery.
In 2000, Oklahoma passed state question No. 688, which allowed wineries to self distribute their product.
“Between 2000, when there were only three wineries in the state, and 2006, when I got licensed, I was about the 50th,” Knotts said, “That law that allowed wineries to self distribute, which made it real easy for someone like me to distribute to local restaurants and liquor stores.”
Then in 2006 wholesale liquor distributors filed suit against the state of Oklahoma and the state question was then ruled unconstitutional because it “favored Oklahoma wineries,” Knotts said.
It was ruled unconstitutional because it violated the commerce clause, according to Chad Alexander, representative of Oklahoma wholesaler, Central Liquors Company.
“The Federal Courts said it was unconstitutional,” Alexander said, “they said a state cannot allow for businesses of a state to act in one way while the 49 other states have to do business another way.”
Other laws such as Senate Bill 2205 and Senate Joint Resolution 62 have been submitted to help modernize the liquor laws in Oklahoma. These would have allowed licensing for grocery stores to sell strong beer and wine.
“There was so much protest to that, not by the people but by the legislators, which I believe were influenced by the wholesale liquor distributors that that law was altered and now is just a study, a commission to study the affects of it,” Knotts said.
Ben Odom, a lawyer based out of Norman, said that liquor stores are opposed to the modernization of Oklahoma’s alcohol laws because it would affect their hold on the business.
Liquor stores use a false argument that because of their business they have an expertise in liquor, beer and wine, although this is not always the case, according to Odom.
“You have a lot of small businesses that are locally owned, ‘mom and pop’ stations that would certainly be put in a disadvantage if it was allowed to be sold in retail outlets,” Alexander said.
The liquor industry operates on a three-tier system: the manufacturer, the distributor and the retailer.
“It’s called the golden rule, those with the gold make the rules and so the wholesale liquor distributors that made millions off of the three-tier system because it’s basically a state sponsored monopoly,” Knotts said.
The wholesaler industry in Oklahoma is very competitive and currently there are around 13 different wholesale companies, according to Alexander.
According to the Beer Distributors of Oklahoma, the three-tier system is set up to have check and balances in order for consumers to purchase alcohol.
Manufacturer’s sell to distributor, who then increases the price when they sell to liquor stores or restaurants, which then increase the prices again, according to Knotts.
In order for wineries such as Knotts to distribute, they must purchase a permit costing several hundred dollars a year. For a small operation, the cost is too high to make it a profitable decision.
“Oklahoma is not unique in the idea that it’s going to come, although sometimes I think we’ll have legalized marijuana before we’ll have real good liquor laws,” Knotts said.
For now Knotts will continue to grow his grapes, harvest them and turn them into wine solely for his winery.
“This is the only place in the world that you can get Redbud Ridge wine,” Knotts said.
Redbud Ridge Vineyard and Winery is located off of Highway 9 in Norman, Oklahoma. The winery is open Thursday through Sunday, 1 p.m. to 6 p.m. for wine tastings.
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