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The level of regulation in the wine industry is very high. The wine industry is heavily regulated. It is amongst one of the most complicated industries with respect to interstate commerce due to the verity that individual states restrict the sale and shipment of the alcoholic beverages across the state lines. Regulation usually favors trade primarily through networks of approved retailers and wholesalers.
They are two types of regulatory environment in the United States wine industry: open and control. In open, industries are slowed to sell wine directly to independent distributors. In contrast, control states have a monopoly regarding the warehousing or retailing of their own products. In the United States 18 states control the channel of distribution, half of the states also have monopoly regarding the retailing of the alcoholic beverages. Moreover, Wine is an alcoholic beverage that is controlled by the ATFD (alcohol, Tobacco ad Firearms division) of the IRS. As a result, it subjected to very high taxes.

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