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Howard W. Hewitt

~ … The "W" stands for wine!

Howard W. Hewitt

Tag Archives: Wine shipping

Three-tier system doesn’t help consumers

21 Friday Jul 2017

Posted by Howard in Newspaper Column 2017, Uncategorized

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Indiana alcohol laws, Lodi, Wine shipping

Every now and then it’s time to pause and share a few things going on in the wine world which will eventually affect the habits of most if not all wine drinkers.

Indiana alcohol laws make the news. Indiana is usually featured in stories about our lack of Sunday sales when it comes to garnering attention. But very recently the U.S. 7th Circuit Court of Appeals upheld a district judge’s decision that Indiana’s policy of separating beer and liquor wholesaling doesn’t violate the Constitution’s Equal Protection Clause.

grape-sense-logoSo what does that mean for consumers? One of the biggest wholesalers challenged the law arguing it discriminated against beer wholesalers. Well, that’s just nonsense. What it does do is keep alcohol distributors from bigger monoply than they already enjoy.

The old three tier distribution system dates back to post-prohibition. It’s an outdated income model for the middle man – the distributors. Many Hoosiers have wine shipped to their home. But there are many states where the laws are so convoluted or the permits so expensive that it’s just not profitable for west coast wineries to go to the trouble. The state’s liquor laws are crazy – don’t forget the silly Ricker’s mess from the past legislative session. Rickers figured out, legally, how to offer cold beer sales on Sundays by adding some food sales to their convenience stores. How dare they think creatively. The legislature passed a measure prohibiting such sales but grandfathering in some who had figured out how to get around the law. They set a curious deadline that excluded Ricker’s from the exception.

This is where the form paragraph should be inserted about the alcohol lobby’s campaign contributions. Everyone, even in the Indiana legislature, gets contributions. The same company that sought to strengthen its monopoly was investigated for skirting campaign contribution laws in 2015.

The legislature is talking of modernizing our booze laws. It will be quite interesting to see if they can make the type sweeping changes the state needs and deserves.

Look out for Lodi wine explosion. The cost of grapes and property in Napa Valley is so high many are forecasting a boom for Lodi. For those without a map, Napa is due north of San Francisco while Lodi is due east of the Golden Gate. Lodi grows many of the same grapes that Napa is well known for. But in Napa a ton of high quality Cabernet can cost $5000-$20,000. That’s how you end up with $300 bottles of Cabernet Sauvignon. Conversely, Lodi Cab and Cabernet from other areas in the state can be purchased for much less.

If you want to drink California Cabernet look for Lodi on the label or Paso Robles or even “Happy Valley” from Santa Barbara.

Napa could become Cab only. The explosion in Napa Cab value and price has come partially at the expense of Syrah, Sauvignon Blanc, and Merlot. Those varietal could slowly disappear from Napa because of the price growers can earn by growing Cabernet

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Legislature Right – For a Change

22 Friday May 2015

Posted by Howard in Indiana, Midwestern States, Newspaper Column 2015

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Butler Winery, French Lick Winery, Indiana legislature, Jim Butler, Kim Doty, Phil Boots, Uplands Wine Trail, West Baden, Wine shipping

Indiana’s legislature showed a small bit of sanity in getting a shipping law passed for Hoosier Wineries before closing the most recent session. Governor Pence signed the bill into law.

Phil Boots

Phil Boots

Grape Sense LogoSen. Phil Boots, R-Crawfordsville, gudied the legislation removing the face-­to-­face requirement for Indiana wineries to ship wine to their customers. At one point, the licensing fee went from $100 annually to $500. That was plain and simple another case of the legislators bowing to the powerful liquor lobby, funded largely by alcohol distributors.

He urged supporters to keep the foot on the gas and in the end the fee structure was set up on a graduating scale depending on production and alcohol shipped. A fair, if not arguably unnecessary, solution.

Kim Doty, standing center, with husband John and family.

Kim Doty, standing center, with husband John and family.

Indiana wineries could not be happier.

“When the law requiring an initial face to face transaction became effective, it literally destroyed our shipments to wine customers,” said Kim Doty, owner of French Lick Winery.

“We lost 95 percent of our wine shipping sales. Our wine sold and shipped to customers in 2004 was about 10 percent of our total sales. Today with the face to face requirement, our shipping sales are less than one tenth of 1 percent of our total sales. This requirement has also had a negative impact on the growth of our wine club with 99 percent of our wine club sales are shipped directly to the home.”

Again, that face­-to-­face requirement was added to legislation in 2008 as a token to the alcohol lobby but crippling, in particular, to small wineries.

Wineries like French Lick were forced to play along but at a steep price. “We have accumulated over 5400 completed verification forms to date. We would have sold and shipped at least twice that if not for the requirement.”

The new law requires age verification but all shipping laws generally do. Wineries can meet the requirement by using an age verification delivery service like FedEx or UPS.

“We are thrilled with having the requirement rescinded,” Doty said. “Age verification will still be performed by the delivery company and we will pay additional fees for this service. We are confident that our wine shipments are properly handled in accordance with Indiana’s age requirement for liquor.”

Jim Butler

Jim Butler

Jim Butler, Butler Vineyards near Bloomington, has long been one of the industries leading spokespersons and advocate for sanity in wine shipping laws and more.

“We are basically back to where we were 9 or 10 years ago,” Butler said. “With the face to face requirement we l lost 90 percent of our shipping business. Perhaps now we can build it back. This is a nice step forward. It is always a battle of the titans at the statehouse about alcohol issues, big money. big players. We are just little guys. It is one small step toward sanity.”

Sanity? That seldom happens with the legislature and liquor laws. Just look at what happened this year with Sunday sales. A simple law was mangled with requirements that would have retailers build walls in existing stores to sell alcohol on Sundays.

Fortunately, the legislature got it right for Indiana wineries, big and small, in 2015.

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