Uncorking Granholm: Extending the Nondiscrimination Principle to all Interstate Commerce in Wine

Abstract

In a landmark 2005 decision, Granholm v. Heald, the U.S. Supreme Court ruled that states could not constitutionally discriminate in interstate commerce by permitting in-state wineries to ship directly to customers while prohibiting the same for out-of-state wineries. States previously had argued, with some success historically, that the Twenty-first Amendment authorized them to regulate liquor as they pleased—-without Commerce Clause interference. Granholm seemed to clearly establish, once and for all, that “the Twenty-first Amendment does not supersede other provisions of the Constitution.” Several recent federal courts of appeals, however, have refused to heed this clear message when confronted with challenges to laws discriminating against out-of-state wine retailers. This Note argues that a simple Commerce Clause analysis should apply to discrimination against all out-of-state business interests, regardless of their status with respect to the traditional three-tier regulatory system.