Illinois Facing Direct Shipping Challenge

[Brad Ballinger]

Full article here.

If passed, House Bill 4350 and Senate Bill 2180 will prevent Illinois wine lovers from purchasing wine directly from out-of-state wineries and will likely bankrupt many in-state wineries. . .The bills include an unusual provision prohibiting wineries producing more than 100,000 gallons, about 42,000 cases, from shipping directly to IL consumers. This new limit -- not in the current law -- may be considered unconstitutional and will cut-off shipments to existing IL consumers from many small wineries.

The bill would not allow direct shipping from in-state wineries as well.

[Rebel Rose]

In Virginia, a bill that would preserve the right of small Virginia wineries to distribute their products to restaurants and stores was struck down because it didn't extend the same right to out of state wineries.

Half of the state's wineries produce less than 2,500 cases in a year. The wineries make about a fourth of their sales through self-distribution, said Terri Coffer Beirne, a winery lobbyist.

Small winery owners told the subcommittee that forcing them to use distributors would sharply cut or wipe out their profit.

A wine shop owner, a representative of the state's tourist industry, agricultural groups and a grape grower spoke in support of the bill. Rock Stevens, who grows 12 acres of grapes in Accomack County, said 300 commercial vineyards in Virginia could lose customers and be put at risk if wineries go out of business.

I don't understand the logic in these efforts. Distributors are vigorously fighting against these bills, and against rewriting the bills to open direct sales to retailers from out of state producers, claiming that these new laws will "put them out of business." Where is the protection for the wineries and vineyards? If a distributor can't offer a service that wineries want and need, they should be put out of business!