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Wednesday, February 22, 2006

Ind. Law - Indiana wineries' troubles continue

Several stories today on efforts to "help" or not, Indiana wineries.

"Vintage dispute — Proposal to restrict wine shipments has NWI wineries worried" is the headline to this story in the Gary Post-Tribune. Some quotes:

Local wineries fear a proposed bill in the state’s General Assembly could put a cork in their business.

As H.B. 1190 left the House, it would ban direct shipment of wine to customers, forcing small Indiana wineries to ship their products through wholesalers.

“If this passes, as is, 30 of Indiana’s 31 wineries will go out of business,” argues Dave Lundstrom, who owns the Anderson Winery in Porter County.

Advocates of restricted access to alcohol are supporting the bill, saying it would make it harder for young people to buy alcohol through the mail.

The Munster (NW Indiana) Times also has a story, by Christine Kraly. Some quotes:
Without the proper licenses, shipping wine into or out of the state already is illegal. Additionally, House Bill 1190 would prevent Indiana wineries' ability to ship to customers within the state. It also would demand that winery owners utilize a wholesaler to transport wine to individual retailers.
Similar problems exist in other states this year, as regular readers of the ILB will recall. The Chicago Tribune reports today:
Richard Faltz runs Fox Valley Winery, which produces about 30,000 gallons of wine a year in Oswego. But lately, he has been heading to Springfield once or twice a week on a mission he believes is critical to preserving the future of his 5-year-old business and the fledgling Illinois wine industry. * * *

Vintners contend they need to expand an industry that is growing and showing promise. But the Associated Beer Distributors of Illinois argues that wineries are trying to extend their reach unfairly and perhaps spread the unmonitored consumption of alcohol.

The dispute stems from a U.S. Supreme Court ruling in May that declared laws in Michigan and New York discriminatory. Like Illinois, those states had allowed all in-state wineries and select wineries in certain other states to ship directly to consumers while blocking wineries outside the network from doing so.

To level the playing field and eliminate an unconstitutional advantage, the high court decided that no state shall "... ban, or severely limit, the direct shipment of out-of-state wine while simultaneously authorizing direct shipments by in-state producers."

That ruling led to a nationwide scramble among 20 states to align in-state and out-of-state wine distribution laws. In Illinois, as in other places, the ruling yielded dueling legislative agendas.

Posted by Marcia Oddi on February 22, 2006 01:19 PM
Posted to Indiana Law