Vineyard & Winery Management

September/October 2014

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w w w. v w m m e d i a . c o m S e p t - O c t 2 014 | V I N E YA R D & W I N E RY M A N A G E M E N T 9 1 STREAMLINING For all the grousing about deal- ing with the federal government, Eva Bedolla, president of Napa- based Wine Compliance, said the Alcohol and Tobacco Tax and Trade Bureau's (TTB) incremental chang- es have made the process easier. open their borders to wine. On the heels of New Jersey's move in 2012, wine sellers have new legal access to tens of millions of consumers. For Massachusetts, it was a trip back to the drawing board. The Bay State passed a direct shipment bill three years ago with onerous pro- visions, including those that would have required common carriers to register vans individually for alco- hol distribution, set volume caps on how much alcohol could collective- ly be shipped in any given year, and prohibited wineries producing more than 30,000 cases per year from shipping. The law was deemed unconstitutional, but recently the Maryland Legislature crafted a rea- sonable bill that was signed by Gov. Patrick on July 11. "Massachusetts took a major step in the right direction," said J e f f C a r r o l l o f S h i p C o m p l i a n t , based in Boulder, Colo. While efforts at full privatiza- tion of Pennsylvania's government "With proper planning, you can work with the system," she said. "The TTB is not as critical about minor things and is more interested in seeing wineries make good-faith disclosures that accurately reflect what they are doing." Obtaining TTB approvals is criti- cal because many state regulators rely on the federal agency to do the leg work and require federal approvals before the state offers a nod. Bedolla has encouraged her cli- ents to file amendments to licenses online, a commendable streamline to update routine information such as change in officers or production volumes. In the past, amendments had to be filed in paper form. Overall, Bedolla said the TTB has become more relaxed about such things as shared-space win- eries and proscribed font sizes on labels. When obtaining a certificate of label approval (COLA), wineries no longer need to submit graphics in the exact size they will appear on the label – which was a challenge when sending images electroni- cally. That stumbling block often resulted in delays. DIRECT SHIPPING There is positive news on the direct shipping front as Massa- chusetts and Pennsylvania – the two most populous of the non- direct-ship states – take steps to + Label approvals and license amendments through the TTB continue to become more automated and electronic. + The TTB appears to have shelved mandatory ingredient labeling for wine in favor of allowing wineries to do it voluntarily. + TTB backpedaled on stringent requirements for stores and wineries offer- ing refillable wine growlers. + Massachusetts and Pennsylvania are on the cusp of passing workable direct shipping provisions. + A proposed "deemed approved" model could make many certificates of label approval virtually automatic. AT A GLANCE Eva Bedolla of Wine Compliance says the TTB is easing up on minor issues. Jeff Carroll of ShipCompliant predicts that Delaware will be the next state to open up to direct shipping.

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