|February 15, 2019
For Immediate Release
|Office of Congressional and Public Affairs
TTB Press Release
Consignment Sales Result in Multiple Permit Suspensions
Washington, D.C. — Between December 2018 and February 2019, four California wine wholesalers and two California wineries each served one-day stipulated permit suspensions for violations of the consignment sales provisions of the Federal Alcohol Administration Act. An additional California wine wholesaler that was also under investigation opted to surrender its permit.
These six stipulated suspensions and one surrender all resulted from investigations that developed out of the joint operation that TTB conducted with the California Department of Alcoholic Beverage Control in March 2018.
The four wholesalers who served suspensions are A&M Wines, Monticelli Brothers, Pavi Wines, and MB Vogelzang Vineyards. The two wineries who served suspensions are Six Sigma Winery and Tamber Bey Vineyards. Homage Vineyards surrendered its permit.
Specifically, these industry members engaged in consignment sales of wine to a trade buyer(s) who were not obligated to pay for the wine until after it had been sold to retailers. Consignment sales arrangements, like other unlawful trade practices, are used to gain an unfair advantage over law-abiding industry members and ultimately limit consumer choice.
Relevant documents related to the suspensions can be found on our Field Operations Administrative Cases page.
TTB is committed to creating a level playing field for law-abiding industry members of all sizes. Industry members who engage in anti-competitive practices damage other, law-abiding businesses and prevent consumers from enjoying a wide selection of products.