Requirements to become an importer?

[MarkinHouston]

I have been reading Craig Camp's excellent article Kissing the Frog in which he describes a wide range of quality French wines available for good price points versus some of the New World competition. But when I look through the online database for Spec's, which is a very large retailer in Houston, there is a noticable absence of these wines. Is the market for French wines locally controlled by a few mighty distributors (Glazers comes to mind)? Have the Dubyacans put a huge kibosh on French products? I may be going to France, so what could stop me from ponying up for some sort of import license and finding my own little niche market. Even with oil down to $58/barrel, , the Houston economy is farily robust and surely could support a carefully selected list of quaffable wines. Or should I just accept what is there and not push the envelope? Thanks for any input or advice regarding this late night rambling.

[Craig Camp]

I'm not sure what the Texas laws are, but first you'll need to get an Federal Importer Permit from the TTB (Alcohol, Tobacco Tax and Trade Bureau) http://www.ttb.gov/. It's not tough, you just have to do the paperwork and write the check.

Large distributors have little use for interesting small wine producers that only miss up their warehouses, confuse their salespeople and add dreaded SKU's. Check out smaller companies like Virtuoso Selections in Austin for more information.

[MarkinHouston]

I'm not sure what the Texas laws are, but first you'll need to get an Federal Importer Permit from the TTB (Alcohol, Tobacco Tax and Trade Bureau) http://www.ttb.gov/. It's not tough, you just have to do the paperwork and write the check.

Large distributors have little use for interesting small wine producers that only miss up their warehouses, confuse their salespeople and add dreaded SKU's. Check out smaller companies like Virtuoso Selections in Austin for more information.

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Thanks for the information, Craig. I think there are alot of things to consider nefore venturing down this road, but it might be fun just to explore thepossibilities.

[marty mccabe]

While I grant you that there are, "a wide range of quality French wines available for good price points," one of the practical challenges is that people like Bobby Kacher, Kermit Lynch, Joe Dressner, and Neal Rosenthal, to name a few, are already importing a lot of wines in this catagory.

Are there more out there? Sure! However, the importers I've named have a combined century's worth of experience AND 100 SKUs in that catagory, between the four of them.

I'm not saying this to discourage you, by any means. Only to say that practically speaking, you have to find a wine that they haven't, get enough of it to make it commerically viable, and then repeat the process a couple dozen times, in order to develop enough of a portfolio to not get lost at even the most boutique-oriented distributor.

Just a couple thoughts...

[Craig Camp]

I think there are still many, many estates out there that are not exported to the USA. However, the trick is finding a distributor to both carry them and work them. The importers Marty names and others have already tied up with the best distributors in most markets leaving only the giants, who have little interest in fine wines. The American three tier system is a disaster for small producers of all countries.

[JohnL]

I have been reading Craig Camp's excellent article Kissing the Frog in which he describes a wide range of quality French wines available for good price points versus some of the New World competition. But when I look through the online database for Spec's, which is a very large retailer in Houston, there is a noticable absence of these wines. Is the market for French wines locally controlled by a few mighty distributors (Glazers comes to mind)? Have the Dubyacans put a huge kibosh on French products? I may be going to France, so what could stop me from ponying up for some sort of import license and finding my own little niche market. Even with oil down to $58/barrel, , the Houston economy is farily robust and surely could support a carefully selected list of quaffable wines. Or should I just accept what is there and not push the envelope? Thanks for any input or advice regarding this late night rambling.

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There's no huge "kibosh" on French products. You are correct in noting the healthy economy that is encouraging the wine business to grow.

The answer is (as noted by some posters) in the nature of the wine importing business.

Also you would be wrong to believe there are hundreds of "undiscovered" French wine makers turning out wonderful and unique wines that would sell here for under twenty dollars.

Many of the under twenty wines are produced by large co-ops and also by large negociants in France (and elsewhere). Those made by smaller operations that are worth exporting are "handled" by one of the many well established importers. (Craig lists a handful of notable names).

There are a growing number of smaller retail establishments that "specialize" in wines from lesser known producers. Unfortunately, many are in major cities on the coasts (and Chicago) for example Chambers Street, Burgundy Wine Company , Pasanella, Italian Wine Merchant, Le Du Wines, Best Cellers, Crush and to name a few here in New York City. (There are many on the West Coast--Kermit Lynch included).

I don't know what the shipping laws are in Texas --but you should try the internet.

You can also contact the various importers--they will tell you what the availability in your area is.

Often--a local wine shop will be happy to order you a case or two of many wines they do not normally carry. Sometimes teaming up with a few friends and purchasing a few cases etc.....

Many wines from smaller producers are not made in huge quantities so you may have trouble finding specific wines.

Where there's a will there's a way!!!!

[Rebel Rose]

Hi, Mark,

I believe there are federal and state licensing requirements, depending on where you plan to source your wines and where you plan to sell them. In addition to Craig's advice, you should check with your local Alcohol Beverage Control (ABC, we call them in shorthand, whatever their local alphabet variation may be). A license to bring something into the US is not the same as a license to sell it . . .

I don't know why . . .

But before you let someone charge you several hundred dollars for an importers' license, you should also inquire about your rights regarding reselling the wine. And of course, there's the warehousing, insurance, etc.

To register for SKU's, (last time I checked?) was about $800 for the basic registration, and about $200 per label. My memory may be faulty on the per-label cost.

It's a daunting endeavor!

[MarkinHouston]

Thanks to all of you who have added insight into this crazed idea of mine. It's not that I really have a burning desire to become an importer, but more a case of angst when I read about all of the great little discoveries which don't seem to be available even in Spec's, which I consider a pretty darn good liquor store/deli/wine shop, and one of the largest anywhere. I think there are some strangely weird laws for Texas, but there are entire groups of wine that seem very under-represented. On the flip side, it makes traveling back to France and Italy that much more rewarding when I fill an extra rolling duffle bag with wine bottles!

[bobferdon]

Good point! I don't know what we pay for our federal license but my state one is >9K.

Bob

Hi, Mark,

I believe there are federal and state licensing requirements, depending on where you plan to source your wines and where you plan to sell them.  In addition to Craig's advice,  you should check with your local Alcohol Beverage Control (ABC, we call them in shorthand, whatever their local alphabet variation may be).  A license to bring something into the US is not the same as a license to sell it . . .

I don't know why . . . 

But before you let someone charge you several hundred dollars for an importers' license, you should also inquire about your rights regarding reselling the wine.  And of course, there's the warehousing, insurance, etc. 

To register for SKU's, (last time I checked?) was about $800 for the basic registration, and about $200 per label.  My memory may be faulty on the per-label cost. 

It's a daunting endeavor! 

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[Marc Olson]

I buy wine in France (for personal consumption) and have it legally imported to the US via a firm in California. They ensure proper labels, duties, etc are handled. The firm I use also is used by many importers who then distribute elsewhere in the US, as are several of the vendors in Europe who sell outside the normal producer/importer/distributor channel.

As an individual you are largely governed by the laws that regulate interstate commerce of wines--many states are reciprocal so you can legally ship wine that you've purchased in one state (via the phone or internet) to another.

But, it's complicated when you want to be a reseller/distributor/retailer.

Contact me via PM if you want more information.