The sign at the gas station reads “Would you like a carwash? If yes, pay 15 cents less per gallon and the carwash is just $5.”
Sounds reasonable enough — the gas station is going to give me a discount on my gas provided I also spend money with them at the carwash. Happens
every day with all sorts of items. Think about the grocery store — “buy 5 yogurts for the price of 4″. Or on-line shoe stores — “buy more than $50 and the shipping is free.” Or info-mercials — “buy within the next 15 minutes and we’ll throw this bonus CD in for free!”
This all seems so easy to digest for me, but for those of us in the wine industry, just about any ‘encouragement’ we give to consumers to buy our wines is or can be interpreted by the powers that be in our government as ‘inducement’. And ‘inducement’ is illegal.
I’ll make an assumption that this dates back to Prohibition because just about everything does in the alcoholic beverage business. The thinking is
that the government does not want to ‘encourage’ consumption of alcohol, therefore any efforts by the producer to do so is considered ‘inducement’ and frowned up. More than frowned up — it is illegal.
Now — interpretation of the law is a funny thing. ‘Free shipping’ is inducement, but ‘shipping included’ theoretically is not. Weird.
Meanwhile, I stroll the grocery store in the cereal aisle and the health claims on, for instance, Fruit Loops, jump out at me. Am I not being ‘induced’ by Fruit Loops to buy them because they benefit my health? Really? And forget about any health claims we might use for wines. Oh my, no!
I’m really not indicting Fruit Loops or my Chevron station — I’m merely pointing out the lunacy and scrutiny imposed on wine (and other alcoholic beverages). At Humanitas, I am dedicated to making really good wines…and to giving profits (7% of my revenues — see my ’7% Solution’ post) to charity. Is this ‘inducement’? I guess it is once again ‘interpretation.’ I suppose if I said ‘if you buy my wine, I’ll give my profits to charity’ vs ‘for every purchase of Humanitas wines, I donate my profits to charity’ – that would be the difference between illegal inducement and legal promotion (this is an example only — I honestly don’t know this).
I suppose I’m feeling a little invaded lately. Again, I’m just trying to make honorable wines and do an honorable deed by giving back to the community. Is anyone in the wine business consciously inducing consumers to do something wrong or bad for them? I just don’t think so…but then again…I’m just thinking out loud.
Anyone else out there have a thought on this? Are we inducing or simply promoting like everyone else in the free market? I’d like to hear from you. Meanwhile, of course, drink charitbly!





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