November 01, 2011 15:53 ET

Lot18 Praises Advisory by California Department of Alcoholic Beverage Control

Explanation of State's Laws Will Help Wineries, Marketers and Consumers Alike

NEW YORK, NY--(Marketwire - Nov 1, 2011) - Lot18, the New York-based company that is changing the way Americans buy wine and gourmet food, announced its support of this afternoon's advisory released by the California Department of Alcoholic Beverage Control regarding proper compliance for online wine sales facilitated by third-party marketers. Today the ABC provided clear, precise solutions to issues raised in the wake of a similar advisory in 2009, and thus created a roadmap that third-party marketers such as Lot18 can follow to help wine producers ship their products directly to discerning consumers.

"This is a very important day for the wine industry and for wine drinkers," said Philip James, co-founder and President of Lot18. "From the beginning, we and our partner ShipCompliant invested thousands of man hours in building systems of payment and order fulfillment that we believed were necessary as sound business practices in America's complicated regulatory environment. Over the past several months we carefully followed opinions and best practices across all states leading up to today's advisory, and after review we're able to fully embrace each of the California ABC's solutions. Lot18 can assure all its partners, suppliers and members, especially those in California, that Lot18 is open for business as usual."

Lot18 is an invitation-only site that provides its members with exclusive access to rare and hard-to-find wines and artisanal foods selected by the company's expert procurement team. In less than a year since its launch, Lot18 has facilitated sales of more than 500,000 bottles of wine to consumers across the country.

Of particular importance in the California ABC's advisory is the requirement that the winery, under its own license, select the products to offer for sale and price them, be responsible for accepting and fulfilling all orders and that the winery is ultimately responsible for the actions of the third-party marketer. The advisory also outlines the proper disbursement of funds from a transaction facilitated by a third-party marketer. Lot18's current systems account for all of these requirements.

"We believe that the new guidelines set down by the California ABC will contribute to the long-term success of the online wine-sales channel by providing a set of rules around which suppliers can participate in compliant systems for meeting consumer demand," said Jason Eckenroth, CEO of ShipCompliant, based in Boulder, Colorado. "As a result of the deep, custom integration between Lot18 and ShipCompliant, wineries have full control over compliance, acceptance, fulfillment and payment disbursements."

About Lot18
Lot18 was founded in 2010 by Kevin Fortuna and Philip James. Fortuna was formerly the CEO of Quigo, an advertising technology company that was sold to AOL Time Warner for $360 million in November 2007. James was the Founder and CEO of Snooth, the world's largest wine website. Lot18 connects its members with exclusive, limited-time opportunities to purchase directly from wineries, gourmet-food producers and other makers of artisanal goods. Each product or experience featured on Lot18 is individually evaluated for quality by Lot18's team of experts. Lot18 is headquartered in New York. For more information or to request an invitation for membership, visit

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About ShipCompliant
Based in Boulder, Colo., ShipCompliant is the leading provider of compliance tools addressing both state and federal laws and regulations. ShipCompliant provides wine and spirit producers and importers, fulfillment houses, and third-party providers with a full suite of web-based compliance and distribution solutions for direct to consumer sales, three-tier sales, product registration, and for third party providers via the ShipCompliant Marketplace services. For more information on its products and services go to or call (303-996-2342).

Contact Information

  • Contact:
    Allison Brady
    Atomic PR for Lot18
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