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New law puts cork on direct wine sales

Filed by NorthCoastNOW September 28th, 2007 in Top Stories.
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Hoping to have a nice bottle of California wine delivered to your door anytime soon?

Don’t hold your breath.

On Monday, all direct wine shipments to Ohioans from wineries producing more than 150,000 gallons a year will stop. The provision, which snuck into the state budget without public debate, will affect thousands of wine consumers throughout Ohio.

According to the law, only wineries producing less than 150,000 gallons a year will be able to apply for one of two permits. The first allows wineries to sell directly to retailers and the second allows wineries to sell directly to consumers.

Wineries that produce more than 150,000 gallons a year — slightly more than 60,000 cases — used to be allowed to sell directly to consumers. Now they’ll be subject to the traditional three-tier system.

This means that wine will be forced to move from the manufacturer to the wholesaler, where there is a state-mandated minimum markup of 33.3 percent, to retailers, where there is another mandatory minimum markup of 50 percent, according to Matt Mullins, spokesman for the Ohio Division of Liquor.

“It’s all a revenue thing,” said Dr. Paul Matus, Lorain County Coroner and wine buff.

It means that some wine aficionados will have to spend more for their wine.

That is, if they can get it at all.

Many wineries — more than 100 in California alone — will not be able to ship wine directly to their customers. Many of these don’t sell to retailers in Ohio, thus leaving their Ohio customer base with nothing to do but whine.

Patricia Latimer, author of “Ohio Wine Country Excursions,” sees even bigger problems with this bill.

“Governor Strickland and his representatives in the Ohio House and the Ohio Senate need to work differently and partner with visionary states like California, Oregon, Washington and New York,” she said. Excluding their direct shipments, she claims, will only hurt the Ohio wine industry.

For many, this piece of legislature means that they will have to find new ways to satisfy their wine cravings.

Contact Michael Baker at 329-7155 or mbaker@chroniclet.com.



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