Hundreds of California Winemakers Set
To Lose
Wine Shipping Rights to Illinois
-Pending
Illinois Law Hits CA Winemakers Without
Winemaking Facilities-
(Sacramento, Calif) Upwards
of 500 California wineries will be prohibited
from shipping wine to consumers in Illinois
if pending legislation in that state becomes
law. These California winemakers have "Type
17" and "type 20" licenses
issued by the California Alcohol Beverage
Control that allow them to make wine at
facilities they do not own themselves. These
winemakers' official status in California
as "retailers" and "distributors"
put them at odds with Illinois House Bill
429 that would only allow "wineries"
to ship into the state, according to the
Specialty Wine Retailers Association.
"The
500-plus California brands these winemakers
produce range from highly boutique and coveted
to being very large and well distributed,
to everything in between," explained
Tom Wark Executive Director of the Specialty
Wine Retailers Association that is opposing
HB 429 in Illinois. "I suspect these
winemakers will be very surprised when they
are told by the state of Illinois that even
though they make wine, they are prohibited
now from shipping into the state they've
had access to for 15 years."
Alcohol
Distributors' Efforts to Shut Down Wine
Retailers hits some Winemakers hard
California
winemakers that hold type 17 and type 20
licenses tend not to own their own winemaking
facilities, but rather do their winemaking
at other wineries or at "custom crush"
facilities. However, their wine brands and
wines are often among the most famous in
the state. In many cases these "virtual
wineries" depend heavily on direct
shipment of wine to consumers. Yet, their
California licensing identifying them officially
as retailers and wholesalers will keep them
out of the Illinois direct shipping market
just as all California wine stores would
be prohibited from shipping to Illinoisans
if HB 429 becomes law.
Cameron
Hughes, the owner of San Francisco's Cameron
Hughes Wines, is one of hundreds of California
winemakers who hold a 17/20 license combination.
Hughes has thousands of customers across
the country, including in Illinois.
"This
kind of law is an unbelievable power grab
by entrenched business interests seeking
to limit consumer choice," Hughes charges.
"Not only is it legally dubious and
in direct opposition to the 'Granholm' Supreme
Court decision, it's a big middle finger
to Illinois consumers."
Specialty
Wine Retailers Association is suggesting
California winemakers holding a combination
17/20 license contact their customers in
Illinois and urge them to tell their legislators
to vote no on HB 429.
"These
California winemakers are caught in the
middle of an effort by wine distributors
nationwide to shut down retailer-to-consumer
shipping for sake of protecting their own
market," explained Wark. "Our
position is that consumers should have access
to all wine retailers nationwide and that
the 2005 Granholm v. Heald Supreme Court
decision compel states to treat in-state
and out-of-state wine retailers, as well
as wineries, equally when it comes to direct
shipping regulations.
The
legislation has passed the House and is
currently waiting to be voted on in the
Illinois Senate.
Specialty Wine Retailers Association
Tom Wark, Executive Director
707-935-4424
twark@specialtywineretailers.org
|