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April 29, 2008
Free the Grapes! and Coalition for Free Trade Toast ShipCompliant Promotion:
“Help Shackles” Campaign Supports Winery Free Trade, Consumer Choice in Wine
April 29, 2008, Napa, CA – ShipCompliant, the wine shipping compliance company, has created a novel promotion designed to help wineries and raise money for Coalition for Free Trade and Free the Grapes!, two organizations at the forefront of industry litigation and consumer outreach on the direct shipping issue. ShipCompliant will donate one month’s revenue for each new customer who signs up for their direct shipping compliance software in May 2008. www.shipcompliant.com/helpshackles
Legislation that favors consumer choice in wine plus the U.S. Supreme Court ruling in Granholm v. Heald have been a boon to wine lovers. And while Free the Grapes! and Coalition for Free Trade have continued to work with industry representatives to open new states, defend legal states,
and streamline onerous legislation, a patchwork of state regulations presents administrative challenges to wineries.
ShipCompliant is used by more than 600 wine brands across the county, helping companies understand and efficiently comply with changing regulations. This is done using order shipping compliance checks as well as auto-populated
state shipping and tax reports – the technology is underpinned by a flexible, geography based rules-engine and dedicated compliance expertise.
Now, ShipCompliant has launched its “Help Shackles” campaign – named after the Free the Grapes! logo – to raise additional funds for the associations that have broadened the market for direct to consumer wine sales. “This is the right thing to do, and wineries will find it surprisingly easy to use our new compliance tools,” said Jason Eckenroth, president of ShipCompliant. “We hope to translate ShipCompliant’s value into a generous donation for these worthy and effective organizations,” he added.
“This is a breakthrough concept for the wine industry,” said W. Reed Foster, president of Coalition for Free Trade. “For too long, funding has relied on a few generous people and companies who recognize the return on investment of these donations,” he added. About ShipCompliant
ShipCompliant is produced by Six88 Solutions, based in Boulder, Colorado. ShipCompliant offers a web based subscription service that provides wine direct shipping compliance checks and reporting for more than 700 wine brands throughout the United States.
For more information on the ShipCompliant promotion and service, wineries should visit www.shipcompliant.com/helpshackles, or call Kim Moss at (707) 320-0053.
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March 24, 2008
Free the Grapes! Toasts Wisconsin Legislature
for
Supporting Consumer Choice in Wine
March 24, 2008, Napa, CA – Wisconsin wine lovers will enjoy an increase in the wines available to them after a new winery-to-consumer shipping law is implemented October 1, 2008.
On March 13, Governor James Doyle signed Senate Bill 485, which replaces the state’s current reciprocal law on October 1, 2008. The new law will allow wineries to purchase a permit for $100 and ship up to 12 cases of wine per individual per year, among other provisions.
Prior to passing the new law, Wisconsin was one of only three remaining “reciprocal shipping states”, a type of “free trade network” that had allowed only wineries in participating states to make shipments. As states like Washington, Oregon and other key markets changed over to permits, Wisconsin consumers have found it harder to locate wines under the old law. All U.S. wineries will be eligible for the new Wisconsin permit.
The model bill has been implemented in a majority of states, in many cases replacing reciprocal laws as in Wisconsin, allowing any U.S. winery to purchase a permit, pay taxes, mark boxes, and consent to the jurisdiction of the state, among other provisions. The model bill is supported by the Federal Trade Commission and was cited by the U.S. Supreme Court.
“Wisconsin wine lovers will no longer be limited to purchasing wines directly wineries located in just a handful of states. The outdated law effectively shut-off consumers from purchasing wines directly from thousands of wineries in states like Washington, Oregon, Texas and New York, among many others” said Jeremy Benson, executive director, Free the Grapes!, a national consumer and winery grassroots coalition. There are now more than 5,000 wineries in the United States, at least one in each state
“Wisconsin’s legislators have embraced reasonable, proven legislation that benefits consumers, creates a new tax revenue source, satisfies regulatory concerns, and supports the in-state wine industry,” he added.
Since the U.S. Supreme Court ruled on direct shipping in May 2005, winery-to-consumer shipping has become legal in 35 states, which collectively represent 81% of wine consumption in the U.S. Free the Grapes! is a national consumer-winery grassroots coalition of more than 300,000 members and supports legal, regulated direct-to-consumer wine shipments.
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March 6, 2008
Florida Legislators Defy Two Years of Successful Wine Shipping,
Introduce Bills to Ban Winery Direct Shipments
Free the Grapes: Don’t Cap My Wine!
March 6, 2008, Napa, CA – Florida legislators have introduced bills that promise to ban winery-to-consumer shipments, eliminating a consumer privilege that has been enjoyed by Floridians since March 2006, according to Free the Grapes!, the national consumer and winery grassroots coalition (www.freethegrapes.org).
The bills include House Bill 1293 (Garcia), House Bill 693 (Bogdanoff), Senate Bill 1096 (Margolils), and Senate Bill 1736 (Geller).
Florida wine consumers and U.S. wineries are opposing the bills because they all include “caps” which would ban winery-to-consumer shipments from any medium-sized or large winery producing more than 250,000 gallons. For the past two years, wine wholesaler middlemen in Florida have strongly supported similar legislation, and without success. Massachusetts passed a law imposing a similar, arbitrary cap but it is being challenged in court because it discriminates against wineries based purely on how much wine they craft. A summary judgment is expected this spring.
Free the Grapes! is encouraging consumers to visit www.freethegrapes.org and personalize a message to state legislators supporting no change to the existing law, or the introduction of the model direct shipping permit bill. The model bill has been implemented in a majority of states, allowing wineries to purchase a permit, pay taxes, mark boxes, and consent to the jurisdiction of the state, among other provisions. The model bill is supported by the Federal Trade Commission and was cited by the U.S. Supreme Court.
“Each of these protectionist, special interest bills hurts consumer choice in wine. Why change the current law? Consumers are happy, wineries are paying taxes, and the sky is not falling,” added Benson.
There are now more than 5,000 wineries in the United States, at least one in each state. But it is estimated that less than 17% of wineries have national distribution, based on a 2003 survey by Wine Institute. And because it is logistically impossible for wholesalers and retailers to stock and sell more than 15,000 new wines introduced each vintage, Florida’s legislators and special interests are deciding which wines Floridians can and cannot purchase.
“These bills aim to cut off Florida’s wine lovers from their favorite wineries,” Benson concluded.
Since the U.S. Supreme Court ruled on direct shipping in May 2005, winery-to-consumer shipping has become legal in 35 states, including Florida. The legal states collectively represent 81% of wine consumption in the U.S., and Florida is the second largest state for wine enjoyment (source: Adams Wine Handbook 2007). If one of these bills passes into law, Florida would be the largest state ever to rescind its winery-to-consumer shipping privilege.
As background, an August 2005 U.S. District Court order ruled Florida’s direct shipping ban unconstitutional. It was followed by a determination by the Department of Business & Professional Regulation that allowed Florida consumers to begin ordering wine directly from out-of-state wineries in March 2006. At the time, Florida was the largest U.S. state that did not allow legal, regulated winery-to-consumer shipping. Within a year, the number of wineries filing shipping reports and paying the required excise taxes rose from 0 to more than 500, according to DBPR records. From July 2006 through January 2007, out-of-state wineries shipped approximately 30,000 cases and paid more than $157,000 in excise taxes.
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February 14, 2008
New Mexico Wine Shipping Bill Stalls in House
February 14, 2008, Napa, CA – On the last day of New Mexico’s 4-week legislative session, Senate Bill 59 died in the House following Senate approval Saturday.
The bill received widespread support from Senators, was endorsed by the New Mexico Wine Growers Association, and received favorable testimony by the New Mexico Retailers Association and the New Mexico Restaurant Association.
The bill promised to replace the state’s outmoded ‘reciprocal’ direct shipping law – which limits consumers from purchasing their favorite wines – with language that would have allowed wineries and retailers from any state to obtain a permit for a fee, pay taxes, and ship limited amounts of wine to New Mexico consumers 21 years or older.
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January 18, 2008
Free the Grapes!: Following State Direct Shipping Laws Still Key to Improving Consumer Choice
January 18, 2008, Napa, CA – The first provision in the Wine Industry Direct Shipping Code is for licensees to abide by state shipping laws, and the provision continues to be key to expanding choices available to wine consumers, according to Free the Grapes!, the consumer grassroots coalition that implemented the set of voluntary guidelines in 1999.
“With recent news of sting operations, it’s important to keep in mind the longer term strategies that have helped to expand consumer choice,” said Jeremy Benson, executive director of Free the Grapes! “Following the code’s guidelines is not only the right thing to do, but also a proven, practical approach to helping wine lovers.”
“The code and related model direct shipping bill have played a key role in demonstrating that limited, regulated direct shipping works,” said Steve Gross, Free the Grapes! board member and director of state relations, Wine Institute. “The number of states which allow licensed wineries to ship wine interstate to consumers has risen from 17 to 33 in the last decade, and those states represent nearly 80% of wine consumption in the U.S.”
The purpose of the voluntary code is to provide shippers with a framework which, when adopted, will ensure that direct shipment orders and deliveries are completed in a manner consistent with appropriate laws, satisfies consumer demand, and supports the tenets of Free the Grapes! Introduced on January 12, 1999, several of the code’s principles were taken from the model direct shipment law, which was proposed by the Coalition for Free Trade, Family Winemakers of California, Wine Institute and American Vintners Association (now WineAmerica), and recommended for adoption by the National Conference of State Legislatures, Task Force on the Wine Industry, on November 5, 1997. The code can be viewed online at www.freethegrapes.org.
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February 2008
The 2008 state legislative sessions are running full tilt and we have updates, below. We also have information on the Direct to Consumer Symposium, May 1-2 in Napa.
LEGISLATIVE UPDATES
Most of the details on bills was provided courtesy of Wine Institute.
Maryland – Favorable Bill Heard Monday Could Fix Maryland
Maryland’s state legislators considered House Bill 1260 on February 18, and Free the Grapes! consumer members, retailers, industry representatives and others turned out to testify in favor. Wholesalers and some in-state retailers testified against the bill. Consumers using the Free the Grapes! website sent more than 900 letters to Maryland legislators within 72 hours of a Free the Grapes! email request last week.
New Mexico – Reciprocal Replacement Runs out of Time
On February 14, the last day of New Mexico’s 4-week legislative session, Senate Bill 59 ran out of time. The bill received widespread support and passed out of the Senate unanimously. It was endorsed by the New Mexico Wine Growers Association, and received favorable testimony by the New Mexico Retailers Association and the New Mexico Restaurant Association. The bill would have replaced NM’s reciprocal law.
Wisconsin – 2007 Reciprocal Replacement Bill Resurrected
Last October, the Governor struck language in the Budget Bill that would have replaced Wisconsin’s ‘reciprocal’ direct shipping law with a permit-style system. This year, with the support of the Governor and a broad coalition of interests, the WI legislature is considering Assembly Bill 795 and Senate Bill 485 that create the same type of permit system.
Indiana – Fix-it Bill Dies in Committee
Senate Bill 337 died in committee, and would have removed the face-to-face requirement in the existing law, and removed the prohibition on shipments for wineries with wholesaler representation in the state.
Pennsylvania – PLCB Drafting Delivery, Pick-up Bills
Several bills in drafting stage seek to amend PA’s restrictions but would require consumers to pick-up orders from PLCB stores, or allow only the PLCB to deliver wine to consumers’ homes.
Ohio – Amendments to Cap Sought
Industry representatives have been working with legislators to amend the state’s law that prohibits shipments from wineries or wine companies producing in excess of 150,000 gallons.
LITIGATION UPDATE
Massachusetts – Update on Lawsuit Challenging Cap
The Family Winemakers of California is the lead plaintiff in this lawsuit against the State of Massachusetts seeking to overturn the 30,000 gallon production cap. Summary judgment is expected in late March.
SAVE-THE-DATE: DIRECT TO CONSUMER SYMPOSIUM, Napa, May 1-2
Presented by Coalition for Free Trade and Free the Grapes!, this comprehensive summit on direct marketing and sales will include strategic insights for long-term planning, tactical recommendations for immediate implementation, and updates on litigation and legislation.
A must-attend event organized by vintners, for vintners. Sessions will include:
• Successfully managing compliance
• Building a mailing list outside the tasting room
• Growing clubs beyond 5,000 members
• Starting a winning direct program
Online registration will be available early March.
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