Back in March, a Financial Times article reported that Amazon.com was getting ready to enter into the wine business. The move was being made despite numerous regulatory obstacles that complicate the process such as requirements that the company open distribution centers in 10 states that mandate a physical presence to be in the business.
Now, according to reports, Amazon is ready to begin selling U.S. wines early next month.
Napa Valley Vintner, a nonprofit association that represents vintners in California's wine growing region, is working with members interested in selling their wines through Amazon.
"They have been working for a while on this wine project. Now they are signing up the wineries," Terry Hall, communications director for Napa Valley Vintner, told Reuters. "They're fast-tracking it right now."
"They (Amazon) are really looking to be the go-to Web site for wine sales," he told CNET News.
Amazon is working with New Vine Logistics, a Napa, California firm that will help it fulfill orders to 45 states.
Annual consumption of wine has risen for 14 consecutive years and sales were between $30 billion and $32 billion last year, according to Barbara Insel, president of Stonebridge Research Group.
Discussion Question: Will Amazon change the dynamics of wine sales? Will it be able to do for wine what it did for books? What challenges will it face?