Wine Commission Openings

Dear FWWS Member,

There are currently two open positions on the Washington Wine Commission, these being positions two and four. Both of these positions must be held by wine producers, one of which must represent a winery producing less than 25,000 gallons of wine annually. Position two is currently held by John Bookwalter, and position four by Chris Sparkman. Mr. Bookwalter is not seeking another term.

I accordance with RCW 15.88, the State Director of Agriculture appoints the members of the Washington Wine Commission. The Agriculture Director is currently seeking nominees to fill these positions and has specifically requested input from FWWS in that regard. If you would like an endorsement by FWWS for nomination to either position, please send a short email to the FWWS board with the following:

• Your contact information
• A brief description of our background in the Washington Wine Industry including the name, location and current annual production of your winery in gallons,
• A brief outline of your background including any aspects of your professional or community service history together with any other pertinent facts you would like considered such as public relations and leadership skills.

FWWS must make recommendations to the Agriculture Director by Friday May 10. If you wish to seek an endorsement from FWWS for your candidacy for either of these positions, please respond with the requested information no later than Monday, May 6^th.

Thank you,

The FWWS Board

2013 LEGISLATIVE UPDATE

Farmer’s Market Sampling Bill Passes Senate, Moves to house

At the time of this writing, of the wine related bill FWWS has supported in the 2013 session a few are still alive, the most important of which is the bill to make the farmer’s market sampling pilot program permanent.  This bill has passed the State senate and has moved on to the house.  The Board appreciates the quick action of FWWS members in calling their Senators to help move the bill this far and we anticipate a similar call to action in the House process. An update and post mortem on the other various non FWWS sponsored bills will follow after the session and once we know the fate of the Farmer’s Market and other bills.  The following is a discussion of the two bills that FWWS ran this year.  Though neither passed, we are optimistic about the future chances of both of these bills and plan to pursue them.  Read on!

FWWS Proposal to Allow Sale of Wine in Growlers by Retailers

Though this bill had broad support for its environmental benefits, it did not pass out of committee in either house of the legislature. Two stakeholders, the Washington State Liquor Control Board and the Washington Wine Institute spoke with concerns about our bill.  The testimony of both parties was more or less the same and essentially amounted to expressing the view that, while this is a fine idea, it appears to be illegal under federal law.

 This understanding of federal law is wrong.

We encourage you to read the Memo written by FWWS Board President Paul Beveridge to legislative committee members which follows this posting and lays out the actual federal regulatory issues.  Here is the condensed version:  The federal TTB views the filling of growlers by retailers as “repackaging of tax paid wine at other than a bonded wine facility.” We believe that even this viewpoint is incorrect, that filling of customer owned growlers by retailers is simply retailing, and that this does not constitute repackaging of wine any more than a customer filling a bag with dried apricots from a bulk bin constitutes repackaging of apricots.  As intrastate retailing we do not believe that federal rules should apply to this transaction.  That is our viewpoint. What is not in any doubt and something that the TTB in no way disputes is that filling of growlers in a facility licensed as a tax paid wine bottling house is entirely legal under federal law. In fact the retailer Whole Foods is currently offering wine in growlers in the state of Texas under just such a licensing scheme.    At the time of this writing a wine growler bill has passed both the Oregon Senate and House and is awaiting signature by Governor Kitzhaber. 

Considering that at least one Washington retailer offers up to twenty beers for sale in growlers at a single store location, the value of a Washington state law allowing wine growlers is obvious even under the current federal interpretation. Furthermore we believe that, should the TTB be faced with a flood of tax paid wine bottling house license applications by retailers wishing simply to fill growlers, something for which the tax paid bottling house statute was pretty clearly not intended, the TTB leadership will likely either change their interpretation of the statute or seek to change the statute as a time saving expedient. In the meantime, we intend to work to clarify federal law to state lawmakers and the Liquor Control Board Staff, and to bring this bill back next year.  We hope that with the above additional information regarding federal law, the WSLCB and the WWI will support the wine growler bill next year.

 

Multiple Premise Licenses

The other bill that FWWS ran this year was a bill to empower the WSLCB to allow the granting of more than one type of alcohol license to the same premise. The list of possible applications for such a law is too long to include here.  A few obvious possibilities with benefits to the wine industry include:

·         Allowing for sales of beer in winery additional tasting room locations (presently allowed by statute at winery premise tasting rooms but not at additional tasting rooms)

·         Allowing wineries to rent space in another winery premise tasting rooms (presently allowed at secondary tasting room locations but not at a winery production premise)

·         Allowing for brewery or distillery operations at a winery premise (presently allowed under federal “alternating premise” licensing but not by WSLCB staff interpretation).

While the bill drew broad support it was opposed by the Washington Beer and Wine wholesalers Association and the WSLCB.  The bill did not pass out of committee.  However, WSLCB staff indicated to us that they are willing to work on regulations this summer to fix the problems.

We fully intend to take the WSLCB up on their offer to discuss specific goals and business models that we wish to see made possible including all of the above cited examples.  However, we are aware of numerous examples of multiple licensing that would benefit other industry members and we strongly believe that a broader, not narrower, solution is precisely what our industry needs in order to unleash the entrepreneurial creativity of industry members.  Since this is very much in line with our new Governor’s often cited approach to encouraging business and economic development friendly regulatory reform, we intend to discuss this bill directly with the Governor’s office in order to try and enlist support for next year.

You may be assured that we will not rest until we achieve success on both of these issues. Stay tuned!

 

Full Text of Board President Paul Beverage’s background MEMO to Legislators Regarding the Legal Aspects of Wine in Growlers Follows:

From: Paul Beveridge, President, Family Wineries of Washington State

To: (Various Legislative Committee Members)

Subject: [FWWB] Wine Growlers

Dear members and staff of the Governmental Accountability & Oversight Committee,

Thank you again for holding a hearing on HB 1742, the wine “growler” bill. As you will recall, the only concern over the proposed legislation expressed during the hearing was that wine growlers may not be considered legal under federal law by the Tax and Trade Bureau (TTB). As we discussed at the hearing, Family Wineries of Washington State and organizations in other states have been working on the federal question for several years. In the past, TTB has indicated that wine may only be bottled in a federally licensed winery or bottling house. Our compatriots in Oregon, however, have pointed out that federal law does not extend to the retail sale of wine and therefore should not apply to the refilling of growlers, just like federal law does not restrict the filling of carafes at restaurants. Further, growlers are sold locally, not in interstate commerce, so federal law should not apply. Once the federally approved label is placed on the wine keg and all the federal taxes are paid by the manufacturer, the TTB has no jurisdiction over the wine as it travels through local retail channels. On this basis, Oregon wineries are pushing a wine growler bill in Oregon, HB 2443 (copy attached). See the following article for more information: http://www.winesandvines.com/template.cfm?content=110673&section=news.

Further, wine growlers are currently being sold in Texas with the approval of TTB and the agreement of the Texas ABC. For instance, Whole Foods in Texas has installed wine and beer “growler filling stations” at its Texas grocery stores. (See: http://www.examiner.com/article/weekend-pint-craft-and-growler.) We understand that the Texas retailers like Whole Foods have obtained federal licenses from TTB for wine bottling houses at their retail establishments. This is an example of the good things that can result if “multiple licenses at the same physical premise” are allowed -- which is the subject of our other bill, HB 1711, that was also reviewed at the hearing last Tuesday.

Here is a link to a New York Times article that discusses wine growlers in other states such as California and South Carolina: http://dinersjournal.blogs.nytimes.com/2011/03/30/growlers-for-grapes.

Therefore, if HB 1742 is passed, retailers in Washington state would have two options: Follow the lead of Oregon and argue that federal law does not cover the local retail refilling of growlers; or, if TTB objects, obtain a wine bottling house license from TTB for their retail premise where the growlers would be filled. Either option is acceptable to FWWS.

Since it appears that the potential TTB issues can be resolved, and since everyone agrees that wine growlers are great for the environment and the economy, we hope you will move HB 1742 through executive session as soon as possible.

Thank you for your continued support of small Washington wineries.

 

The Year Behind, The Year Ahead

Dear FWWS Member.

An excellent proverb reminds us that while we are measuring our aspirations by looking forward we should remember to measure our progress by looking back. 2012 has certainly been a year to look back upon with some satisfaction.

FWWS Tax Reporting Relief Bill Passed
After five long years of effort our small wineries tax reporting relief bill passed the legislature in 2012! With signature by the Governor and rulemaking completed by the WSLCB, wineries selling less than 6,000 gallons of wine in Washington may now report and pay their liquor taxes as infrequently as annually (previously required monthly). Aside from drastically reducing the paperwork burden for in-state wineries, this bill also makes Washington one of the nation’s leaders in reducing the burden of interstate shipping of small quantities of artisan wine.

What is a Winery Bill defeated.
Sometimes what is prevented from happening is as important as what is affirmatively created. This was the case with a bill intended to drastically raise the bar for what it takes to be licensed as a winery in Washington. This bill, which was shown to the world five days before it’s first legislative hearing last session, would have made wine “production” synonymous with “fermentation” (currently any change in federal tax class of wine is production from the federal perspective and “crushing, aging in bulk or blending” are considered production in the state view). It would also have required that a winery “produce by fermentation” at least 200 gallons of wine per year on a rolling two year average in a facility owned and controlled by the winery (currently the standard is “more than zero gallons” at least every other year). The most bizarre aspect of this proposal was that, while it prohibited the smallest wineries from making wine under custom crush arrangements, once the 300 gallon threshold was reached the prohibition completely disappeared. This would have allowed business as usual for the state’s largest wineries that produce literally millions of gallons of wine annually through such custom crush arrangements. By shedding light on the logical inconsistencies of this bill and raising questions over its purpose FWWS was instrumental in preventing this misguided and unnecessary proposal from receiving a vote. We will remain vigilant should another attempt be made to introduce and pass such a senseless proposal on short notice.

Initiative 1183 Implemented
Initiative 1183 was implemented in 2012 through state rulemaking. As a result, a number of new businesses such as Total Wine and More and BevMo took up residence in Washington and significant pricing and distribution channel reforms were enacted. During the rulemaking process, some of the members of the pro-initiative 1183 coalition sued the WSLCB with regard to the Liquor Boards restrictive interpretation of the retailer to retailer sales allowed under I-1183. A discussion of the issues involved is beyond the scope of this re-cap.


Rulemaking, Some Good, Some Not so Much
FWWS was pleased that The WSLCB sided with our position in continuing to allow retailers to price wine below cost of acquisition in order to meet a competitor’s price. Prior to passage of I-1183 this aspect of state law was meaningless since all producer prices except close outs were required to be uniform. With delivery charges and volume discounts now allowed in producer pricing, it makes sense to allow a retailer to reduce their prices in order to meet a competitor’s price assuming the lower price they are meeting is due to the lower acquisition cost of their competitor. We argued that the allowance should remain. The Board agreed in a 2:1 decision

Less welcome was the WSLCB’s unilateral decision to eliminate enforcement of NSF checks used to pay for wine. While FWWS was willing to accept this suggestion by the Liquor Board last legislative session as part of a comprehensive reform of the credit ban, also allowing voluntary limited credit terms for checks similar to what is allowed for Electronic Funds Transfers, the elimination of NSF check enforcement by itself is not in our view a reasonable or fair outcome. While wineries are still required by law to receive payment on delivery and are subject to WSLCB sanction for failing to do so, if the check they receive on delivery bounces, no specific sanctions against the retailer remain in law.

Looking Ahead
FWWS will continue to tirelessly advocate for positive improvements in wine regulation and will remain watchful to prevent burdensome and unnecessary changes in the law such as the “What is a Winery” proposal. A couple of things we hope to advance in the coming year are:

• Allowing the sale of Wine In “Growlers”                                                                                                                      Federal Policy prohibits the sale of wine in re-fillable “growlers” the way beer may be sold, unless such containers are filled at a bonded wine facility. FWWS has been pursuing this issue for over two years now and will continue work with federal legislators on the issue. We believe the popularity of this most “green” of all packaging formats (studies show that 65% of a winery’s carbon footprint is in the glass packaging) will continue to grow.
• Allowing Multiple Licenses for the Same Premise                                                                                                              A number of our member wineries have expressed interest in having activities in their premises which require multiple licenses for the same premise (i.e. serving beer in their tasting room, selling another winery’s wine in their tasting room). The WSLCB has indicated that they do not believe that they have the authority to issue such multiple licenses for a singe premise, but has not identified a public policy reason why this should be prohibited. FWWS will seek legislation to affirmatively grant the WSLCB such authority.

With your help we’re making a difference! Happy holidays and best wishes for a prosperous New Year.

Your FWWS Board

Wineries Required to Register with FDA before December 31st

Dear FWWS Member,

As part of the federal "Food Safety Modernization Act" wineries are required to register with the US Food and Drug Administration as "Food Facilities".

Those of you who have been in business since 2002 probably recall that wineries were notified that such registration was required under the federal Bioterrorism Act.  The Food Safety Modernization Act requires that this registration now occur between October 31st and December 31st of even numbered years ( like 2012).

You may register your winery by using the following link.  Online registration is available by clicking the tab under "Guidance, Requirements and Regulatory Information" at the upper left corner of the page.

Your FWWS Board

http://www.fda.gov/Food/GuidanceComplianceRegulatoryInformation/RegistrationofFoodFacilities/default.htm

2013 Winemakers Basecamp Last Call for Early Bird Registration

Dear FWWS Member,

 

The following is an invitation to the fourth annual installment of a popular and rewarding technical symposium series affiliated with the Washington Wine Technical Group. This is also a great and relaxing networking opportunity. Please see “Who attends?” for eligibility requirements. This conference should fill up so don’t wait to register. Also note that Early Bird registration pricing ends December 1st.

 

Please direct any questions to Katy Perry or Kendall Mix at the email addresses below.

 

Your FWWS Board

_______________________________________________________________

2013 Winemaker’s Base Camp in Mazama!

Base Camp: (Noun) A place where one prepares for a journey or expedition

Announcing the fourth (somewhat) annual Winemaker’s Base Camp in Mazama, February 2013.

When is it?: February 19-21, 2013

Where is it?: The Mazama Country Inn in beautiful Mazama, located in Washington’s North Cascade mountains

What is it? Inspired by the Steamboat conference in Oregon, in 2007 Katy Perry invited a bunch of friends and colleagues to bring challenging wines to Mazama and discuss them in an atmosphere of confidentiality and scholarly support. The idea was that we all make mistakes and these can be some of our best learning experiences. Since then we have also added trials and experimental wines to the agenda. The Base Camp is further a place to relax, exercise, and network with colleagues in a fun, beautiful and energetic setting. This importance of this latter part of the experience cannot be overstated.

Who attends? Professional winemakers and others directly involved in the winemaking process. Members of the Washington Wine Technical group or others who would qualify for membership except for their geographical location. In short, this is a conference for winemakers, cellar workers, enologists, wine researchers and wine technicians.

Who does not? Winery administrative, sales or non-technical staff. No vendors or suppliers. No wine critics, bloggers, writers, and non-professionals such as home winemakers.

The cost?      The early bird conference fee is $110* for those registering and booking accommodations before December 1^st, 2012. (accommodations NOT included). Book your room directly with Mazama Country Inn, see details below**.

On December 1^st the "procrastinator’s special" is $150*.

*The conference price includes two dinners (including corkage!) on Monday and Tuesday, lunch Tuesday, après ski snacks and beer, conference supplies and materials.

**A limited number of spaces are available for non-participating spouses at $75/person.

Refunds?       Refunds for conference fees will be made up until Jan 15, 2013. A $10 cancellation charge will deducted from your refund. Refund questions for room cancellations should be discussed directly with the Inn, not WWTG.

Accomodations?

The Mazama Country Inn is where the group is staying, where all the meetings will be held, and where both dinners will be. We have a special group rate for this event. Please contact Mary Milka at the Mazama Country Inn (509)996-2681. Email at Marymilka@mazamacountryinn.com. Mention that you are booking for the Winemaker’s Base Camp on Feb. 19^th and 20^th, 2013. Room sizes vary, so book yours early.

What else is Mazama is a premiere cross country skiing and winter

There to do?recreation center. The Country  Inn is located right on the Methow Valley Sport trails Association (MVSTA) ski trails, comprising the largest system of groomed cross country ski trails in North America. Snowshoeing, snowmobiling and shopping in the old west town of Winthrop are also nearby, as is relaxing in the hot tub. Lessons in skate and Nordic style skiing are available.

What isthe Agenda? Monday February 19^th. Arrive in the afternoon (check in at 3:00 pm) book a ski lesson, go for a ski or tour nearby Winthrop. Drop off your conference wines for the morning sessions. Settle in and relax. Happy hour is at 5:00-6:00 PM . Dinner is at 6:00 PM. Corkage is included in the package so bring some of your finest!

Tuesday February 20^th. Have breakfast at the Inn or grab a pastry and espresso at the Mazama Store next door. Arrive at the conference room at 8:00. Tasting starts at 8:30 and goes until 12:30. Wines will be categorized in flights. We will review the wines in groups while taking notes. The wine’s owner will then discuss why they brought the wine. What they know about the issues expressed and may have tried to remediate the wine. Participants will then brainstorm solutions and/or discuss similar issues they have experienced before moving on to the next wine. 12:30-1:00 PM. Soup and sandwiches catered by the Mazama Store. 1:00 – 5:00 PM free time. See activities listed for Monday. John Morgan will help in coordinating group lessons or tours for those who are interested. 5:00-6:00 PM happy hour networking and reflections on the day’s wine discussions. 6:00 PM dinner. After dinner think about a soak in the hot tub or join a moonlight ski led by party coach John Morgan (bring your headlamp).

                       Wednesday February 21st. Check out and breakfast at the Inn or the store. 8:00 convene at the conference center. 8:30-12:00 finish wine tasting. Get on the road home or join others for lunch on our own at the Mazama Store.

Questions about Base Camp can be answered by Katy Perry(katy@tildio.com or 509-679-6831) or Kendall Mix( kendallm@gooseridge.com or 509-439-3902).

Base Camp 2013 Registration Information:

*December 1^st 2012 is the deadline to register for the early bird conference fee at $110*/person. Remember, if you are a Washington Resident you must be a member of WWTG in good standing to attend. Join now, we’re worth it! WWTG Registration form follows.

*Prices include corkage, gratuities and taxes for the dinners and lunch.

*Spouses/partners not attending the meetings are $75**/person.

**Prices include corkage gratuities and taxes for the dinners and lunch.

*The procrastinator’s special starting December 2^nd is $150*/person.

* includes corkage, gratuities and taxes for the dinners and lunch

----------------------------------------

Please call The Mazama Country Inn directly and book a reservation for your room @ (509) 996-2681 or Marymilka@mazamacountryinn.com . Registration for Base Camp does not secure a room for you! You must make your own reservations.

----------------------------------------

Fill out the contact information below and mail in with your check, your payment is your reservation.

After you register for Base Camp you will be sent additional information as the date approaches. You will also be sent a wine data sheet that has to be filled out and returned before the conference.

Base Camp 2013 Registration Form:

Your name & Job title:

Winery name and address:

Are you a current WWTG member? ____yes ____no (2012 membership is acceptable for early bird registration.  Eligibility requirements and application forms follow)

Phone number:

E-mail address:

Credit cards can be processed for Base Camp with an additional $5 fee, call Katy Perry at 509-679-6831 or email katy@tildio.com arrange for this transaction.

Make checks out to: “Base Camp” ($110 before December 1^st, $150 thereafter)

Mail to: Winemaker’s Base Camp

C/O Katy Perry

POB 303

Manson, WA 98831

Refunds will be made upon request until January 15^th, 2013. A cancellation fee of $10 will be deducted from your refund. After January 15^th refunds will be made if your spot can be filled.

Questions?

Katy: 509-679-6831, or email katy@tildio.com

Kendall: 509-439-3902, or email kendallm@gooseridge.com

Washington Wine Technical Group Application Form:

Washington Wine Technical Group

2013 Membership Form

The Washington Wine Technical Group is organized to:

· improve the quality of Washington State wines through education

· foster fellowship and understanding between wineries

· aid members in technical problem-solving

· encourage enological and viticultural research

Name:

Title:

Company:

Mailing Address:

City, State, Zip:

Phone:

Email:

Cell:

Fax:

To help us identify our members, please briefly share your pertinent education, training, and experience in the wine industry:

Current Position (please indicate duration):

Past Positions (pleas indicate duration):

Education:

Degree:

I’d like to volunteerfor a committee:

ð _______________________(i.e.Communication, Base Camp, Tasting, Seminar, WAAG,OpenPreference)

Membership:

ð ProfessionalMembership $70/person

Professional Membership extended to working professionalsin wine production and technology with a pertinentBachelors degree orhigher, or 5 yrs wine industry experience in commercial production, or alliedtechnology

ð Academic Membership$25/personAcademic Membershipextended to permanent, full-time faculty members in extension, research, orteaching positions in a Viticulture and/or EnologyProgram

ð Student Membership$25/person

Student Membership extended to full-time studentsenrolledin an accredited associate, undergraduate, or graduate Viticultureand/or Enology Program

Total Payment:$___________________

Please remit form with payment and make check payable to:

Washington Wine Technical Group

PO Box 3935, Pasco, WA99303
Phone: 509.783.4676orFax: 509.783.4674