The wholesalers in Maryland wanted to have all local wines sold to them. The was based on a suit and Supreme Court ruling on shipping, The MD Comptroller took the wholesaler's side. At the end a public & press out cry got the wholesalers to back down
May 4, 2006
To: Senator Thomas Middletown
Delegate Virginia Claggett
Subject: Kudos
On behalf of the supporters of Maryland wineries. I thank you for keeping them in business.
I began including Maryland wines in courses I taught from 1983-2000, when I retired. I sold wines for 3 Maryland wineries as well as some in Pennsylvania and Virginia.
As you know Virginia is completely in support of their wineries. While attendees at a Virginia Wine Festival have unlimited access to the number and quantity of wines, in the Free State we are limited to 10 ounces of wine per person and subject to examination by local and State police. There have been no accidents in either state after a wine festival.
The friendlier attitude by the Commonwealth has resulted in the growth and Popularity of Virginia wines. While Virginia has its share of small wineries, there are several wineries owned by out of state interests and have enough capital to promote their wine. That's why forcing a Maryland winery to sell through a disinterested wholesaler was an effort to punish those wineries that supported the 2000 direct shipping bill.
The 2000 direct shipping law needed two tries. In 1999 the Comptroller's office prepared instructions for consumers that were as complicated as Part D of Medicare. Advocates of direct shipping and Senator Harris revised the shipping law in 2000. Although the revised law made it easier for consumers, the wineries had a multipage form to fill out with complete financial information. Many wineries thought potential orders too small to spend several days in filling out Dr. Ehart's masterpiece. To compound further revisions, several legislators were challenged by members of the liquor industry.
I suggest you have your staff's monitor the implementing instructions prepared by the Comptrollers Office with input from wholesalers and retail organizations to insure neither in state or out of state wineries are given unneeded instructions that would be in excess of any requirements for wholesalers for retail sales.
As I was employed in retail and managed the fine wine sales for a wholesaler before I became a broker, I know and respect many wholesalers and understand the pressures put on them to maintain the 3-tier system by parent corporations. Nonetheless, trying to put small wineries out of business was pure greed and a disservice to consumers and most retailers. Almost 20 years ago, a leading winery, Byrd in Myersville was forced to close because a developer with ties to Byrd's mortgagee wanted the land. Very few wines on the East Coast were as good as the 1980 and 1982 Byrd Cabernet Sauvignon. I suspect some of those who lobbied on behalf of the wholesalers knew developers who would love to own land as attractive as Boordy or Catoctin
at fire sale prices.
It takes a good 10 years for young vines to producer world-class wine. There are several vineyards that are now producing competitive wines that compare with many wines from the left coast. There are at least 4 winemakers that would shine in California, France or Italy even though they are self taught.
What you both did in defense of the wineries is worthy of a long toast.
Joe Rosenberg