Issue link: https://read.dmtmag.com/i/63248
Wine Gets Shipshape Eric Sklar can't send his wines to people living in states closed to direct shipping. But he can send them an e-mail telling them how they can fight the system. "Our best allies are the consum- ers who are upset that they can't get the wines they love," said Sklar, founder of the Alpha Omega winery in Napa Valley. More states than ever now allow direct shipping, including New Jer- sey, which just this year became the 39th state to allow such ship- ments. But there are skirmishes yet to be fought, which means the industry will continue to mobilize a major political asset – thirsty con- sumers. "It's really, truly grassroots," Sklar said. "It's an effort when you have to go battle these behemoths that have all the money." Last year, consumers sent 100,000 letters to legislators through the Free the Grapes! website, a show of strength that is "one of the key tools that we at Wine Institute use when we're out By Michelle Locke NEWS FLASH there lobbying, trying to pass new or improved direct shipping laws," Wine Institute's Steve Gross said as he summed up the latest devel- opments for industry leaders at the fifth annual Direct to Consumer Wine Symposium in San Francisco. Looking ahead, Florida and Mas- sachusetts seem likely to become the next key battlefields in the ship- ping saga. Meanwhile, work contin- ues on trying to ease restrictions in Indiana, which is an open state but just barely, and on opening up Pennsylvania, where there may be some momentum to allow direct shipping. With so many more states open – there were just four in 1996 – the emphasis in many cases has switched to fine-tuning regulations, such as increasing small shipping limits or decreasing high permit fees. In New Jersey, the nation's fourth-largest wine consumption market, there are a few tweaks to be made, including working on a capacity cap that bans shipments from mid-sized wineries and wine companies producing more than 250,000 gallons per year – which is estimated to exclude 90% of U.S. wine production. The winery permit fee is also on the high side, approaching $1,000, depending on various factors. That might not sound so big, but imagine if every state charged that much. For a small winery, com- ing up with $50,000 would mean going without an employee, Sklar pointed out. Florida remained open despite efforts to overturn direct shipping, although that fight is far from over, Gross warned. "There is no single state in the country that is more important for you to engage your customers than Florida right now," he said. In Massachusetts, legislation Steve Gross of Wine Institute presents that organization's regulatory "to-do list." Photo: Michelle Locke WWW.VWM-ONLINE.COM which would open the state to direct shipping is in play. In a show of how a little consumer input can go a long way, the issue got a boost when a Free the Grapes consumer member brought the bill up to Gov- Washington Wine Commission Names Executive Director The Seattle-based Washington State Wine Commission has hired Steve Warner as executive director. Warner joins the Commission from Merck & Co., Inc., where he was managing director based in Bucharest, Romania. Previously, he held general manager and marketing positions in the Asia Pacific region. Grapevines Engineered to Fight Pierce's Disease Researchers from New Mexico's Los Alamos National Laboratory, UC Davis and the USDA's Agricultural Research Service have engineered grapevines that produce a hybrid antimicrobial protein that can block Xf infection. Their research, published in Proceed- ings of the National Academy of Sci- ences, indicates that vineyards could reduce reliance on chemicals to ward off the glassy-winged sharpshooter, the insect that carries Pierce's disease. Strong Growth Expected for Oregon Wine The results of a survey presented at the 2012 Oregon Wine Industry Sym- posium have experts predicting sales growth of between 7% and 10% for Oregon wines in 2012. The survey also found that tasting room visitations at Oregon wineries increased 12.9% last year, outpacing all West Coast states. Direct-to-Consumer Report Predicts Growth A report by Wine Intelligence USA finds that the U.S. direct-to-consumer sales channel is set to drive the growth of wine consumption over the next 10 years, with sales rising from 7 million cases in 2011 to around 22 mil- lion by 2021. The main growth over the next decade will come from increased online sales and from a significant increase in interest from Millennials. For more industry news briefs, visit the News Flash page on V&WM's website: www.vineyardwinerymanagement. com/magazine/web-exclusive1.asp MAY - JUNE 2012 VINEYARD & WINERY MANAGEMENT 13