Issue link: http://read.dmtmag.com/i/89494
MANAGEMENT UNCORKING PR Beware the ne of the major relics of the repeal of Prohibition is the Byzantine set of regulations we must follow in the market- ing of our wines. In fact, if you read the letter of the law, you will come to the conclusion that it is illegal to encourage the consump- tion of alcoholic beverages in the United States. Period. That's something that makes marketing and public relations even more complicated for the typical winery. I am often consulted by those who come to the world of wine after a career in marketing other products. They can't believe all the restrictions that apply to wine. Even worse, many wineries are simply unaware of the basic rules for marketing alcoholic beverages. They assume that if they see a pro- motion by Coca-Cola or Pepto-Bis- mol, they can do the same kind of thing for their winery. That's a bad assumption. And while the Internet and social media make promotions even easier to execute, the laws have not changed. What may well be easy to execute might still be quite illegal. I recently had a conversation with Gabrielle Janssens, a young Napa Valley attorney who special- izes in alcoholic beverage law, and she agreed that many wineries simply don't know what is legal and what it not. She provided the information below as a guideline. Of course, Janssens also points out that each individual state has separate regulations (thank you, Repeal!) and that you are required to follow the laws in each state in 16 VINEYARD & WINERY MANAGEMENT NOV - DEC 2012 PAUL WAGNER Alcohol Police Make sure your wine marketing programs are legal which you do busi- ness – even via the Internet. Here's what Janssens wants you to know: "Alcohol bev- erage marketing laws are compli- cated! A byprod- uct of Prohibition, alcohol beverage producers must operate in a very restrictive and reg- ulated field. "Before Pro- hibition, it was common for a manufacturer of an alcohol to also own various bars and retail stores. When Prohibition wa s repea led, both the federal government and the individual states took the opportunity to restrict the way the alcohol beverage industry operat- ed. There would be three "tiers" in the industry: manufacturer, whole- saler/distributor and retailer. The goal was to keep these different levels of the industry separate and prevent dominance by a producer or commercial bribery – to elimi- nate the vertical monopoly that existed during Prohibition and orga- nized crime. "There were also hopes that this structure would somehow prevent the excessive consumption of alco- hol. The result is that manufactur- ers cannot give things of value to or have an ownership stake in whole- It's illegal in many states for win- eries to post information online about specific retailers that carry their products. Photo: Thinkstock Paul Wagner formed Balzac Communica- tions & Marketing and is an instructor for Napa Valley College's Viticulture and Enol- ogy Department. salers or retailers, and wholesalers cannot give things of value or own retai l establ ish- ments. Archaic as it is, we still operate under this structure, which is the root of all the complications that come with marketing and pro- moting a winery. "I spent the past few weeks looking at a variety of winery websites to see how they were set up and what content they include. Along the way, I discovered a few common mistakes that also happen to be legal violations. Know- ing what I found will help you avoid making the same mistakes: PRODUCT LOCATOR "In most industries it is a smart practice to let your con- sumers know where they can purchase your products. But not so in the wine industry! It is ille- gal for a manufacturer to give a thing of value to a retailer. What is a thing of value, you ask? It can be something as simple as let- ting people know that a particular retailer carries your product. When you list where your product can be purchased, you are advertising for those retailers. This advertise- WWW.VWM-ONLINE.COM