A Rift in the Valley

SONOMA, CALIF. -- Whether consumers can receive direct shipments of wine and other alcoholic beverages is a political hot potato that may have morphed into a live hand grenade this week -- with teetotaling Sen. Orrin Hatch (R-Utah) proposing legislation that would give states authority to prosecute interstate shipment of alcohol.

In the meantime, two private companies, Chicago-area Lionstone International and San Francisco start-up Naxon, emerged last week to want to horn in on the estimated $200 million to $400 million a year in direct wine sales revenues.

These two events have driven a wedge right through the heart of the wine world.

On one side are wine e-tailers like Virtual Vineyards, small wineries and craft brewers. ...