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Monday, March 06, 2006
Ind. Law - More on intrastate and interstate wine shipping in Kentucky and Indiana
MSNBC is featuring a comprehensive article on the battle betwwen small wineries and distributors from Business First of Louisville. Although the majority of the long article covers Kentucky issues, there is also this discussion:
A similar bill in the Indiana legislature that would have outlawed direct shipments by wineries in that state died earlier this month before it went to a vote. Indiana vineyards had been allowed to ship their product to consumers, although out-of-state wineries are prevented from doing so.Meanwhile, a news release today from representatives of the Indiana wine industry warns: "31 Indiana Wineries in the Crossfire with Proposed Legislation: Consumers encouraged to contact their legislators immediately." Some quotes:The Indiana Alcohol and Tobacco Commission issued an order last year prohibiting direct shipments after a U.S. Supreme Court decision required that both in-state and out-of-state wineries abide by the same shipping rules.
The Indiana wineries sued and got a judge to stay that order until April 1. Unless the Indiana legislature decides the issue by then, wineries in that state could again lose the right to direct-ship.
Indiana residents are encouraged to contact their legislator immediately and ask him or her to say NO to any legislation (including House Bill 1190 and Senate Bill 27) that is a not a clear compromise between the alcohol wholesalers and wineries.For background, here are some earlier ILB entries on the Indiana wine shipping issue:Why: As it’s written now and if passed, this legislation will kill the winegrower industry in Indiana. If passed, provisions of some bills (including Senate Bill 27 and House Bill 1190) would not only ban wineries from direct shipping to customers and retail outlets, but also jeopardize their ability to sell on the premises via tasting rooms.
A core issue at stake is addressing the outdated three-tier liquor distribution system. Indiana wineries’ business was not built on the three-tier system. Direct sales to consumers and retailers are the foundation of Indiana wineries’ business model (up to 40 percent of sales for some wineries), yet that’s one of the very things in jeopardy by proposed legislation.
More than 30 years ago, Indiana gave birth to a new industry: farm wineries. Indiana has watched its wineries prosper and grow to 31 in number, widely distributed across the state. State incentives provided a pro-business model for development, namely the ability to sell directly to consumers in tasting rooms, sell directly to retailers and, although not expressly granted, ship wine to Hoosiers’ homes and businesses. Indiana wineries are tourist destinations, with one million people visiting Indiana wineries annually. Several new commercial wineries are in development stages for southern, central and northeast Indiana. Some of these projects are now on hold given the negative consequences of the pending legislation.
Wineries sue over in-state shipments in Indiana, related matters -- 10/17/05Temporary order OKs in-state shipping -- 11/29/05
New Michigan law permits vintners inside and outside the state to ship their products directly to consumers -- 12/16/05
Small wineries in Illinois buffeted by the alcohol-distribution lobby; What is happening in Indiana? -- 1/11/06
Wine "shipping" bill passes House: An example of "Be careful what you wish for"? -- 2/2/06
More on: Wine shipping bill passes House: An example of "Be careful what you wish for"? --2/8/06
Wine shipping bill to be heard Wednesday in Senate committee -- 2/12/06
Will state wineries die on the vine? -- 2/14/06
Indiana wineries' troubles continue -- 2/22/06
Wineries bill amended in committee -- 2/23/06
Wine shipping committee report now available -- 2/23/06
Garton kills wine bill compromise, says let court decide -- 2/24/06
More on: Garton kills wine bill compromise, says let court decide -- 2/23/06
Richmond Pal-Item's Excellent Editorial: Garton's decision hurts state wineries -- 2/28/06
More on wine shipping bill -- 3/6/06
Posted by Marcia Oddi on March 6, 2006 06:54 PM
Posted to Indiana Law