Wine purveyors sort out buy-direct law
Over a veto by Gov. Mitt Romney, lawmakers in Feb. passed a sweeping change of Bay State wine laws that allows vineyards producing fewer than 30,000 gallons a year to bypass distributors and ship directly to customers.
But larger vineyards and those that had previously used a wholesaler are still required to do so. That has prompted some, including Romney and a number of vineyard trade groups, to denounce the law as a move to protect Bay State wine wholesalers. Robert Buckley, director of the trade group for MA wine wholesalers, did not return repeated phone messages seeking comment.The changes come on the heels of a May Supreme Court decision that overturned laws in MI and NY that banned out-of-state vineyards from shipping directly to customers but allowed in-state vineyards to do so. As a result, laws in 24 states needed to be changed, including MA.
Devil in the details
While the changes may in theory help vineyards by opening untapped markets, regulations associated with selling direct still discourage local vineyards from doing so, says Rich Pelletier of Nashoba Valley Winery in Bolton. Nashoba Valley is one of the state’s largest, producing 26,000 gallons of wine a year from grapes, peaches and other fruits, the equivalent of 98,000 bottles.
Complying with the state’s rules for shipping are so cumbersome that Pelletier has little interest in expanding his direct sales business. Those rules include a $100 permit to register as a seller, paying $100 for each truck that will transport the wine and the paperwork associated with filing monthly tax documents and invoices with the state.
Pelletier sold 200 bottles through the mail last year — roughly 0.2 percent of the vineyard’s production. FedEX is the only company that has the infrastructure in place to ship and verify that purchasers are over 21, he says. Between freight charges, packaging and verification, it costs $8.34 to ship a bottle of wine, a huge disincentive for sellers and buyers.
But not everyone is so down about the changes. Another provision in the new law, which allows restaurant customers to take home their unfinished bottles of wine, is drawing praise from wine store owners and restaurant operators. Richard M. Lombardi, owner of The Vin Bin, a Marlboro wine and cheese shop, says the new law may increase retail wine sales because customers will be more conscious of wine when they take it home. If the wine strikes their fancy, consumers will be more likely to bring label in and try similar vintages.
Sales will increase as people gain familiarity with wines, adds Frank J. Anzalotti, executive director of the Massachusetts Package Stores Association.
Lombardi says competition from direct sales won’t affect his business. "We provide a lot of service to our customers, such as advice or wine-tastings. That’s something you won’t be able to do online," he says.
Chris Liazos, owner of the Webster House restaurant in Worcester, says the new law was a good idea because it discourages people from overindulging before the ride home. "If a couple buys a bottle of wine and drinks only half, they often drink the other half just to finish it off. This is a way to eliminate that temptation." Plus, customers are more likely to buy a bottle than a glass if they can take the rest home with them, he says.
And for wine enthusiasts, the new law is a welcome change, says Greg Mitrakas, a Marlboro real estate lawyer and long-time wine collector. It will be easier now for these aficionados to get their hands on harder to find, out-of-state wines. "Anything that helps consumers is a good thing," he says.
Staff Writer Kenneth J. St. Onge can be reached at kstonge@wbjournal.com
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