FWWS Blog

FWWS Year-End 2011 Update

2012-01-17T15:14:00.000-08:00

FWWS YEAR-END 2011 UPDATE

Dear FWWS member,

This posting provides you with a year-end summary of events,accomplishments, some important industry developments in 2011, as well as a lookforward to 2012.

FWWS Progress in 2011

Initiative1183

We won!

We are very excited about the success of Initiative 1183. We believe that the relationship we builtwith industry stakeholders including Costco since the disappointing outcome ofthe Joint Select Committee process four years ago led directly to the affirmativeinclusion of wine in the distribution process reforms covered in I-1183, andconsequently some of the most important economic reforms for the Washingtonwine industry since prohibition. However,I-1183 was not as sweeping as I-1100. I-1183does not for example change the current one way credit ban in our industry thatallows wholesalers to ask wineries for credit while denying wineries the rightto offer credit to retailers. Nor doesit end the almost entire ban on co-advertising and co-promotion betweenwineries and their retailer customers. What it does do is eliminate uniform delivered pricing and reformdistribution restrictions on wine so that you will:

· Now be able to charge for delivery of your wine ifyou so choose (or be recognized for your customer service if you do not!).

· Charge different prices to different customersbased on class of business or other tangible or intangible economic reasons(for example the PR value of a restaurant or glass pour program placement).

· Recognize the inherent economies in multi-case deliveryby offering volume discounts (or the inherent value, if you so perceive, intreating all your customers the same should you choose to do so). We have heard from several members that theyhave already benefited from this change by selling multiple cases to accounts that used to buy only a few bottles at a time.

· No longer be limited to uniform post-offs and close-outs as incentive pricing for your wine.

· Deliver wine to central warehouses of grocery storechains rather than individual stores (should you choose to make this optionavailable for a given customer).

· Deliver an unlimited amount of your wine to retaillicensees via common carriers.

· No longer be required to keep records of pricescharged for your wines (price filing eliminated).

Furthermore, though not a direct benefit to wineries, retailers will nowbe able to sell and ship wine through central warehouses, providing additional saleschannel access by Washington wineries to consumers in the (sadly somewhatlimited) number of states that allow direct to consumer shipping by retailers.

Another indirect benefit is the ability of retailers holding grocerystore licenses to sell wine direct to restaurants and other retailers (lessthan 24 liters per transaction). Though probably somewhat marginal, in partbecause a federal basic permit as a wholesaler is required, the effect of this provision could providesome economies of scale as well as a win-win situations such as restaurantowners being able to find wines at retail stores and keep them on their winelists even though the wine is sold out at the winery.

Implementation

The effective date of Initiative 1183 was December 8, 2011. Uniform delivered pricing, price filing andthe bans on central warehousing and retailer to retailer sales ended that day. OnMarch 1, 2012 distillers and craft distillers will be allowed to begin sellingdirectly to restaurants. The Washington State Liquor Control Board (WSLCB)adopted several emergency rules to implement 1183 including provisions for retailerto retailer license endorsement for wine, retailer distributor licenses forcraft distillers, etc. The state liquorstores will not be closed until June.

LegalChallenge

Two lawsuits have been filed against I-1183, both alleging that it violatesthe state constitutional ban on initiatives covering more than onesubject. Plaintiffs, including unionsrepresenting public employees, liquor store operators and others have allegedthat the initiative covers changes in liquor distribution law, franchise lawand wine distribution law which are different topics. A request for an injunction againstimplementation of 1183 was denied in one of the suits filed in CowlitzCounty. The plaintiffs in the other suitdid not request an injunction. The motionon the constitutionality of the initiative is scheduled to be heard on March 16^thof 2012. Filing such appeals is notuncommon in Washington. Your FWWS all-volunteer legal team believes that theclaims of the plaintiffs are incorrect, that one subject only -- alcoholregulation -- is involved, and that changes in franchise and distribution lawsare logically required to remove the state from the position of exclusivedistributor and retailer of liquor in Washington. FWWS has been granted intervenor status inthis lawsuit to allow us to submit information to the court in defense of theinitiative. The two cases are expectedto be consolidated soon.

FWWSLEGISLATIVE AGENDA 2011/2012

In 2011, we put forward an ambitious legislative agenda. Included werethe following bills:

Payment Parity Bill, to end the controversy over the credit ban by extending exactly the same terms to business checks that are now applied to EFTs, namely allowing wineries to leave wine with a retailer and receive a check in the mail provided they so choose and have a voluntary pre-existing written agreement with the retailer (otherwise wine would still be due on receipt). This bill was opposed in 2011 by the Washington Beer and Wine Wholesaler’s Association and the Washington Wine Institute. In 2011 we did gain support from the State Grocer’s Association. We have asked the Washington Restaurant Association to support the bill this year.

Based on the support for thecredit ban (wineries and distributors to retailers) among some wineries, wehave made this voluntary payment parity bill our proposed policy solution compromiseto the credit controversy. More winewould be sold, and more wine shops and restaurants would stay in business, ifthe credit ban was completely eliminated, but at least you would be able todrop off wine and not have to wait for a check when you deliver to yourfavorite customers. While we remain opento further discussion of the issue, we find the current situation wherewholesalers may ask wineries for credit but prevent wineries from offering itto their retailer customers discriminatory and unacceptable. We will be running this bill again in 2012.

Tax reporting Relief Bill, to allow wineries selling less than 6,000 gallons of wine per year in Washington to report and pay their wine taxes, at their option, annually. This bill has been hampered for the last two years by a large fiscal note by the WSLCB for computer improvements to implement the bill. Despite the fiscal note, this bill advanced through the Senate Ways and Means Committee, all the way to the Rules Committee where time ran out before it could receive a floor vote.

A welcome and unexpected benefitof Initiative 1183 is that the WSLCB has told us they believe the tax reportingchanges can now be implemented at no significant fiscal impact as part of thecomputer system changes needed to accommodate reporting for liquor distributorsand retailers under I-1183. We understand that the WSLCB fiscal note willtherefore be removed. At this time, weare not aware of any opposition to the bill. We will be pushing the bill, which currently remains alive in both theHouse and Senate, vigorously this year.

Craft Wineries bill, to allow small wineries to opt-out of the arcane and burdensome tied house rules in the RCW. Due to the success of I-1183 and the elimination of uniform delivered pricing, some of the major goals of the Craft bill have already been achieved. Therefore, we are evaluating some changes to the bill and plan to amend it before taking it back to the legislature.

Retailer Direct Shipping bill, to allow out-of–state retailers the same right to ship to Washington consumers currently enjoyed by in-state retailers. We originally drafted this bill to allow direct shipping by wholesalers and importers, but amended the bill to include only retailers when it became clear that the Washington Beer and Wine Wholesalers Association vehemently opposed the out-of-state wholesaler provisions. Much to our surprise, even after the bill was limited to retailers, both the Washington Beer and Wine Wholesaler’s Association and the Washington Wine Institute testified in opposition.

We believe this form ofdiscrimination against out-of-state retailers is much of the reason for thedisparity in the number of states that allow direct to consumer (DTC) shippingby wineries (about 40) versus by retailers (about 15). We further believe thatretailers such as FWWS Industry Member VinoShipper.com are uniquely positionedto provide regulatory compliance in DTC shipping that is daunting to smallwineries and that retailer DTC shipping is a vital market channel for smallwineries. However, given the need toprioritize, and the fact that this bill provides a strategic rather than a directbenefit to Washington wineries, we have decided not to pursue this bill in2012. We will continue to discuss thisissue with industry stakeholders on the local and national levels, and tosupport the efforts of FWWS Affiliate Member the Specialty Wine Retailer’sAssociation to fight this discrimination around the country.

OTHER WASHINGTON STATE ISSUES

“What isa Winery?” or “The Ban on Blending”

For several years the Washington Wine Institute and the WSLCB haveproposed that the definition of “winery” in Washington State should be changed.At state wine forums last fall a written policy proposal in this regard wasrevealed for the first time by the WSLCB.

FWWS is extremely concerned about this policy proposal. We believe that, as drafted, this proposal isnot only counter productive to the stated goal of regulatory clarity, it moreimportantly severely restricts the present right of Washington State wineriesto make wine wholly or in part by blending. We therefore oppose this proposalas drafted.

FWWS contacted the WSLCB to ask whether this proposal will be submittedto the Legislature this year. We weretold that the necessary requests have not been made by WSLCB to allow such aproposal to be put forward this year. Afull analysis of this proposal is beyond the scope of this post but will bebroadcast to FWWS members and other industry stakeholders soon. We stand ready to assist the WSLCB in draftinglanguage to meet any clearly necessary and appropriate regulatory changes butwe are prepared to vigorously resist the drastic curtailment of our member’srights contained in the current draft proposal.

WSLCBBusiness Advisory Committee

FWWS Board members began regularly attending WSLCB Business AdvisoryCommittee (BAC) meetings in 2011. Webelieve our attendance will provide a closer dialogue with WSLCB staff and,equally importantly, with other industry stakeholders. In December we formally requested membershipon the BAC. Given the stated purpose andmembership makeup of the Committee, we see no logical reason why FWWS membershipwould be withheld.

OTHERNATIONAL DEVELOPMENTS

Son of HR5034

House Resolution 5034, the rather ironically named “CARE Act” that wouldoverturn the Granholm decision and allow states to legally discriminate againstout-of-state wineries in DTC shipping, is still kicking in the US House ofRepresentatives. Fortunately this bill,now called HR 1161, did not make much headway in 2011 as Wine America, theCoalition For Free Trade, Free the Grapes, FWWS and others continue to educatelegislators on this nefarious proposal.

Threat toContinued Existence of TTB

A proposal to fold the functions of the TTB into the Internal RevenueService is being floated in Congress as a cost saving measure. We share the concerns of others in theindustry that the TTB has specialized knowledge and regulatory skills thatwould not transfer well to the IRS.

New YorkAdopts Annual Tax Reporting For Out-of-State Wineries

Wineries shipping small amounts of wine direct to consumers in New YorkState will now be able to apply for permission to report their wine taxesannually rather than monthly. We applaudthis move and hope that, with passage our Tax Reporting Relief bill, Washingtonwill soon join New York and Idaho at the forefront of reform on DTC shippingreporting.

ReciprocalSystem Down to One State

With Iowa’s adoption of direct shipping permit requirements, New Mexicois now the last state still remaining in the former 17 state reciprocal systemof “don’t regulate us and we won’t regulate you.” A one-state "reciprocal system" is obviouslya non-sequitur.

Stay tuned and Happy New Year!

Your FWWS Board

Welcome New Member Kitzke Cellars

2011-11-13T19:21:00.001-08:00

I am pleased to welcome our newest member, Kitzke Cellars, to the FWWS. Here is some information on them:

The Kitzke family has long been part of the bountiful harvest of Columbia Basin agriculture. Farming in the area since the 1970s, we have gradually transformed our orchards into vineyards. As a small boutique winery, we have developed an impressive array of wines.

Kitzke Cellars features a Cabernet Sauvignon, Cabernet Franc, Syrah, Sangiovese and two Red Blends. Our red blend, Janaina Sensação, is named after our lovely daughter from Brazil; Sensação means “sensational” in Portuguese, which perfectly describes our wine. Our Upsidedown blend label is an image of our son flipping on his snowboard. This is truly a wine to flip for!

Stop by the tasting room and enjoy a glass of wine and the view from Candy Mountain. From our home to yours, “blessings”, as you embrace treasured memories and fine wine.

http://www.kitzkecellars.com

Welcome to the org!

Welcome New Member Cranberry Road Winery

2011-11-13T18:49:00.001-08:00

I am pleased to welcome our newest member, Cranberry Road Winery, to the FWWS. Here is some information on them:

Cranberry Road Winery started with friends making cranberry wine in their garage. After years of fine tuning and friends telling us we should make this available to the public, we did. Brookside Cranberry Vintners LLC. was formed in early 2009 and we have been growing ever since.

This year we made the decision to expand the winery and move to Grayland / Westport, Washington. We recently purchased 10 acres of land with a 4200 Square foot building. We are in the process of remodeling the building to fit our production needs and will be building a tasting room and restaurant for customers to enjoy.

http://www.cranberryroad.net

Welcome to the org!

Washington Wine Technical Group

2011-11-13T17:51:00.001-08:00

WashingtonWine Technical Group

TheWashington Wine Technical Group improves the quality of Washington State winesthrough education, fosters fellowship and understanding between wineries, aidsmembers in technical problem-solving, and encourages enological andviticultural research

Fall2011

DearColleague:

Willyou join us?

Doyou have training or experience in enology or viticulture? A bachelor’s,graduate or equivalent degree? Professionally employed in commercial production,technology, or research or have experience in commercial production, technologyor research? If so, the WWTG wants you!

Ifthis sounds like you (and we think it does), please join today. Weneed your support to put on our educational events and networkingopportunities.

TheWashington Wine Technical Group exists to improve the quality of WashingtonState wines through education; foster fellowship and understanding between wineries;aid members in technical problem solving; and encourage enological andviticultural research.

Basedon your input, the Washington Wine Technical Group is planning an active and educationalcalendar for 2012. Take a look at this line-up:

JANUARY

BaseCamp

FEBRUARY

Participationat WAWGG Convention

-Education Committee

-Session Manager(s)

-“Friends” booth

MARCH

TastingEvent (Syrah)

Heldat Kestrel, Prosser

APRIL

Workshopon 2011 Vintage

JUNE

AnnualSeminar

AUGUST

TastingEvent (Riesling)

Heldat Long Shadows, Walla Walla

NOVEMBER

2013Planning and Board election

We’vegot a great year planned so please help us help you by joining the WWTG for2012!

Asa bonus, if you join before January you’ll save $30 off the regular 2012membership rate!

Thanksfor your support,

Chair, KendallMix, Goose Ridge Vineyards

Vice Chair,Katie Nelson, Ste Michelle Wine Estates

Treasurer,Marie-Eve Gilla, Forgeron Cellars

Board Member,Paula Eakin, Columbia Crest

Board Member,Gordy Hill, Coventry Vale

Board Member,Katy Perry, Tildio Winery

PS - We’relooking for committee members to help out with the events listed above…let usknow if you’re interested in playing a part!

WashingtonWine Technical Group | PO Box 745, Cashmere, WA 98815 | Phone: 509-782-1200 | Fax: 509-782-1203

WSLCB Online Tax Reporting and Payment System

2011-11-13T17:47:00.001-08:00

Onlinetax payment now offered at no cost to all wineries, breweries and Washingtonretailers

$1convenience fee will no longer be charged

OLYMPIA– Businesses that submit monthly tax payments via the Washington State LiquorControl Board’s (WSLCB) Online Tax Reporting and Payment System will no longerbe charged a $1 convenience fee. This change was effective October 26, 2011.

All wineries, breweries andWashington retailers have the option to file their monthly summary tax reportsand make tax payments through the system, which is available on the WSLCBwebsite at www.liq.wa.gov.

“We removed the fee as aconvenience to our customers, and to encourage more businesses to sign up,”said Judy Layne, WSLCB Beer and Wine Tax Supervisor. “The nearly 1,500businesses that already use the system have found that it makes filing easierand more convenient. Businesses can call us today to set up an account.”

System highlights include:

· Available seven days a week, 24 hours a day

· Previously filed reports available forviewing

· Payment verification

· Secure and confidential

· Offered at no cost to users

The online system emanatedfrom 2006 legislation in Washington State that modified direct-to-consumershipping and tax requirements for out-of-state wineries. The system simplifiesthe reporting process for domestic and out-of-state reporters.

The system is not availableat this time to wine and beer distributors, importers and authorizedrepresentative certificate of approval holders, or public houses.

Whatusers are saying

“The system is very easy to useand keeps everything organized. All of the staff has been very helpful ifyou have a problem. Just use it - it is so worth it!”

LizMyers, Medicine Creek Winery, Washington

“I’vebeen using the online filing system for the WSLCB for almost five years. It isincredibly user-friendly and very straightforward. It’s much moreefficient and green than mailing in reports and writing checks.”

Rebeca Herman, DHWine Compliance, California

“Ihave been using the online system for wine tax reporting for the past few yearsand have found it very user-friendly, convenient and expedient – I wouldrecommend it to all states!”

Jackie Starkovich,Martin Ranch Winery, California

Sign up today

Eligible users can sign upby contacting the WSLCB Beer and Wine Tax Unit at beerwinetaxes@liq.wa.gov or(360) 664-1721. The system is accessible via the WSLCB website at www.liq.wa.gov.

Disitllation Special

2011-11-13T17:37:00.001-08:00

Please see below for a special offer for Washington wineries:

It’s "5 O’Clock Somewhere" is alocally-owned craft distillery located in Cashmere WA. We are offering theservice of distilling your wine into spirits that can be used in the creationof port and other fortified wine products. We will distill using our custom-built Müller Aromat IV still which will result in an extremely highquality distillate that will compliment your beautiful port. This year we offerthis service at a special price of $13.00 per proof gallon of wine delivered toour facility (this price is only for Washington State wineries).

We also offer for sale distilledspirits in both aged and unaged formats. We will set an appointment for you totaste our brandies so that you can choose the perfect complement to your finewine.

Please call Colin at 509-860-0102

Initiative 1183 Passes!

2011-11-13T15:12:00.001-08:00

FWWS is pleased with thesuccess of initiative 1183 which we actively supported. We believe thatit will lead to several positive changes for wineries including the ability toset prices freely like any other manufacturer, to charge for delivery, todeliver to a central warehouse of a retailer and to be freed from the paperworkburden of documenting the price of our wines. We have also consistentlysupported the re-focusing of the Liquor Control Board away from regulatingbusiness-to-business trade between alcohol licensees to regulating thesale of alcohol to the public and reducing the adverse impacts thereof. We believe the State exiting the business of selling alcohol will further thatshift in focus.

Welcome New Member Cairdeas Winery

2011-11-13T15:05:00.001-08:00

I am pleased to welcome our newest member, Cairdeas Winery, to the FWWS. Here is some information on them:

Cairdeas (Car-dess) is an ancient Gaelic word meaning friendship, goodwill or alliance. We believe in all three. Good wine should be shared with friends, goodwill spread at every opportunity, and alliances created with those who share our passion.

Our focus is to create small lots of fantastic wines made from Washington’s best fruit while practicing sustainable wine making and supporting our local businesses.

http://www.cairdeaswinery.com

Welcome to the org!

2011-10-23T17:29:00.000-07:00

FWWS is pleased to announce the release of the official Family Wineries of Washington State iPhone and iPad application!

The application lists all current FWWS members and uses GPS to locate the user and display members on a map.

This version 1 application is live in the App Store and costs $0.99 with 10% of the proceeds directly funding the non-profit organization.

Please download and start using the app today! Also feel free to market this application to your winery customers. We welcome feedback and provide a mechanism within the app to do so. You can expect to see updated versions with new functionality in the near future.

Thanks!

App startup screen


Member list view

Member map view

2011-09-18T16:33:00.000-07:00

Did you miss the WSU seminar “Gearing up for Harvest” held in the Tri-Cities earlier this month? Dr. Thomas Henick-Kling, Professor of Enology and Director of Viticulture and Enology at WSU, will recap the seminar on Friday, September 23 from 7:00-9:00 PM at the Wines of Washington Tasting Room at 1924 Post Alley in Pike Place Market. FWWS member wineries are invited to sign up now before the invitation is extended to other Washington wineries. Thomas will recap the following topics:

Acid Adjustment and Brix Issues - the use of cooler climate fruit ripening parameters, deacidification and avoiding the exclusive use of Brix, pH, and TA for grape ripeness

Fermentation Strategies: Less Ripe Fruit and MLF Issues

Tannin Management: Strategies for controlling tannin extraction with overly tannic fruit

Fining: Mildew Damage - how to deal with fruit infected with various molds and mildews (primarily white grapes)

Difficult Wines and Successes

Please respond by return e-mail if you would like to attend. Non-member wineries and friends are welcome as well. We look forward to seeing you there.

FWWS Board

Welcome New Associate Member, Castillo de Feliciana Vineyard and Winery

2011-09-18T16:28:00.000-07:00

I am pleased to welcome our newest Associate member, Castillo de Feliciana Vineyard and Winery, to the FWWS. Here is some information on them:

Castillo de Feliciana Vineyard and Winery is located just south of Walla Walla on 66 acres.

Feliciana was the chosen name as it is also a blend: "Feliz" means happiness, and also memorializes Deborah's Aunt Feliciana, of whom she has many sweet and vivid childhood memories. The images of a Castillian dancer or Spanish Fado singer will be the centerpiece of the wine label, evoking the mystery, color and enchantment of Spain.

Our tasting room and processing facility will take you to the Southern region of Spain where white stucco building walls are contrasted with Terra cotta tile roofs. The structure will occupy a picture postcard setting with the picturesque Blue Mountains to the south and our estate vineyard surrounding the tasting room to the North.

Our tasting room captures the ambience of true Spanish architecture bringing into play the rich colors and textures of Southern Spain.

Our vineyard has been planted with cabernet sauvignon, merlot, malbec, tempranillo, and alberino varietals. We have installed drip irrigation to water these new plants. The majority of the vineyard has been planted sloping to the south in a direction that will allow maximum exposure to the sun's rays. Grapes must obtain even sunshine throughout the day to ripen evenly.

http://www.castillodefeliciana.com

Welcome to the org!

Welcome New Member Pandora Cellars

2011-09-18T11:45:00.000-07:00

I am pleased to welcome our newest member, Pandora Cellars, to the FWWS. Here is some information on them:

Owner and wine enthusiast Dan Williams founded Pandora Cellars in the Summer of 2010 with winemaker and viticulturist Landon (Sam) Keirsey with a vision of creating quality wines at an affordable price. Our Cellar Master, John Welch, makes sure everything runs smoothly and that we stay on task to get you our wines.

Focusing on Cabernet, Merlot, Malbec and other Bordeaux red varietals as well as Dry Riesling and the French Rhone varietal Marsanne for whites, Pandora Cellars aims to take the best of Washington vineyards fruit and make small quantities of palate pleasing wines.

http://www.pandoracellars.com

Welcome to the org!

Welcome New Member Domanico Cellars

2011-08-30T17:38:00.000-07:00

I am pleased to welcome our newest member, Domanico Cellars, to the FWWS. Here is some information on them:

We are a small family owned and operated winery located in the Ballard neighborhood of Seattle, Washington. We love great wine and have been involved in the Washington wine scene for a number of years. Our focus is making great wines from the best vineyards. Our grapes are hand picked, hand sorted, gently crushed, pressed and aged in the best french oak barrels. Some years we may blend, others we may not. Our promise is to always produce the best wines possible based on what the vineyards, grapes and maturing vintages tell us. Our 2007 release is now available at the winery.

http://www.domanicocellars.com

Welcome to the org!

Welcome New Member Passion Vineyards

2011-08-30T17:12:00.000-07:00

I am pleased to welcome our newest member, Passion Vineyards, to the FWWS. Here is some information on them:

Since 2000, Winemaker Chuck Laird has been pursuing his passion, and refining his technique, until he developed the perfect bottle of passion....... disguised as wine.

Officially started in 2006, Chuck and his crew crushed and pressed 6 tons of grapes at the Issaquah winery this year, including: Cabernet Sauvignon, Cabernet Franc, Syrah, Merlot, Zinfandel, Chardonnay and Pinot Grigio. All the grapes are grown in the southeastern part of Washington state, on the hills above Benton City. With a good relationship with the grower, Chuck is able to help manage the growing process of the grapes along with Scott, from deciding on the amount of canopy left over the fruit, to the proper picking time when the brix levels are perfect.

Passion Vineyards is a small, "boutique" winery, producing around 600 cases of different varietals every year. We hope to grow every year and with your support, we will! We hope you'll come visit, try our wines and enjoy a glass of Passion with us!

http://www.passionvineyard.com

Welcome to the org!

FWWS Regional Meeting in Walla Walla

2011-08-28T17:09:00.000-07:00

Dear FWWS Members,

As part of our program to replace a single annual meeting with multiple regional meetings, an FWWS Board member will be hosting a gathering in Walla Walla this coming Wednesday, August 31, at 7 PM. The meeting will be at Isenhower Cellars south of Walla Walla. We will be discussing current FWWS proposals, the upcoming Liquor Board Forums and any items of concern to members. Please attend if you are able and feel free to invite other winery owners that you think may be interested in FWWS.

If you have questions please contact John Morgan at (509) 429-1834.

Thank you.

Liquor Control Board Selects Farmers Markets for Tasting Pilot

2011-08-02T13:54:00.000-07:00

July 27, 2011

OLYMPIA – The Washington State Liquor Control Board (WSLCB) today selected the 10 farmers markets that are invited to participate in a pilot program that allows wine and beer tastings at farmers markets…

http://bit.ly/q5v10P

Wine Sensory Workshops Presented by WSU Viticulture & Enology Program

2011-08-02T13:49:00.000-07:00

Basic Palate Training (August 24, 2011)

Presented by Dr. Carolyn Ross

In this workshop, we will provide basic palate training with many practical exercises for wine sensory evaluation. Specifically, we will start the workshop with a broad discussion of sensory evaluation. Following this introduction, wine appearance will be presented, including color, clarity and other appearance attributes. We will then move on to an extensive review of wine aromas, including a discussion of the Wine Aroma Wheel and practical activities for the recognition of wine aromas. Following the aroma presentation, we will move on to discuss wine taste (sweet, sour, bitter), wine flavors and wine mouthfeel, all providing practical examples of these attributes. We will finish up with a discussion of wine finish and overall quality. All of these sensory attributes will be discussed in further detail, along with techniques used to evaluate the attribute and the vocabulary used to describe the attribute in a wine. Practical examples of each attribute will also be presented to help illustrate. This will be a very important workshop for wine professionals and those interested in learning more about wine sensory evaluation.

August 24, 2011 – 1:00 to 4:00pm Consolidated Information Center, Room 120 WSU Tri-Cities, Richland http://www.tricity.wsu.edu/admission/contact/campusmap.html

Registration fee - $40.00 To register please contact Debbie Schwenson at 509-372-7224 or schwenso@wsu.edu.

****************************************************

Advanced Sensory Workshop (August 25, 2011)

Presented by Dr. Carolyn Ross, Dr. Thomas Henick-Kling and Dr. Richard Larsen

This workshop will provide additional training for those interested in learning more about their aroma and taste sensitivity, as well as their detection thresholds for different aroma compounds. In this workshop, we will present several key aroma and taste compounds at a range of concentrations to allow the participants to recognize their personal detection threshold for these important compounds. We will talk about the wide range of sensitivity that exists among individuals and also within the same individual for different compounds. It is important that winemakers (and consumers) know the sensory threshold is not an absolute value – there are people who can detect a particular aroma or taste compound at concentrations well below and some who can only detect it at much higher concentrations.

August 25, 2011 – 8:00 to 4:00pm Consolidated Information Center, Room 120 WSU Tri-Cities, Richland http://www.tricity.wsu.edu/admission/contact/campusmap.html

Registration fee - $90.00 To register please contact Debbie Schwenson at 509-372-7224 or schwenso@wsu.edu.

2011 Legislative Wrap-Up

2011-06-23T16:51:00.000-07:00

Dear FWWS Member,

The 2011 Washington Legislative Session ended with the close of the special session on May 27th. There is much activity to report. Based on the huge amount of time and effort your volunteer Board and our contract lobbyists put in, we hope you will take the time to read this lengthier-than-usual posting. There were several laws passed and issues raised during the session that affect the Washington Wine Industry.

FWWS BILLS

Tax Reporting Relief Act

This bill would allow any winery producing or importing into Washington less than 5,000 gallons of wine per year to report and pay their liquor taxes, at their option, annually, rather than monthly. The time saving implications for the State’s smallest wineries could not be more clear.

This is the fourth time we have introduced this bill. Despite facing the same daunting fiscal note (with which we do not agree), this bill could not have come closer to passing than it did. The bill passed out of initial committees in both houses and proceeded through the Senate, where it passed both the fiscal Ways and Means Committee and the Rules Committee before expiring for lack of a floor vote at the last minute. After that point we attempted to have the bill attached to another budget bill as an amendment. This concept was well received, and the effort only foundered ultimately in one case on a matter of legislative protocol, and in another case due to a technicality related to the title of the bill. We are gratified by the broad bipartisan support this bill has received despite the attached fiscal note. We plan to re-introduce it next year and fully expect that it will pass.

Payment Parity Act

This bill would extend exactly the same terms that now apply to Electronic Fund Transfers (EFTs) to ordinary business checks as payment for wine. In other words, a winery could, at their option and with a pre-existing written agreement, allow a retailer to take receipt of wine and put a check in the mail within one business day. If the check is not received within five days, the retailer would be subject to Liquor Board sanction similar to what now applies to bounced checks. Presently, wineries that leave wine without receiving payment at the time of delivery, have no legal recourse to enforce payment, since they have violated the due-on-receipt requirement of the law in doing so.

This bill once again was opposed by the Washington Beer & Wine Wholesalers Association and the Washington Wine Institute. The California Wine Institute withdrew their objections to the bill after a slight modification. We were pleased to have the support of the Washington Grocers Association this year and further pleased that the House sponsor of our bill repeatedly challenged factual errors of opponents’ testimony. These errors included the claim that the bill allows five days of credit for retailers (in fact it allows one business day of credit – same as the provisions recently enacted for EFT payments), the claim that retailers will demand to pay later (in fact it is voluntary to wineries and requires a pre-existing written agreement – same as for EFT payments), and the claim that it is a radical idea in that it creates credit for alcohol where none presently exists in Washington (in fact EFT payments now enjoy the one business day of credit that we are proposing, and further, sales to the Liquor Control Board are not subject to due-on-receipt at all). We believe this bill represents as much compromise as we can offer on credit, reducing it to one day – same as EFTs. This proposal will do essentially nothing for wineries that favor setting their own credit policy, but will at least solve the due-on-receipt problem for self distributed wineries. As long as wholesalers retain the right to ask wineries for any legal credit terms they chose, we will not cease pursuing at least this small fix.

On the subject of payment, it is worth noting that, in a recent broadcast to the industry, the Washington Wine Institute suggested that they would discuss a proposal to require payment for wine by wholesalers on a net thirty basis with Liquor Control Board enforcement. This is the so called “Texas System” that FWWS has long advocated as a compromise solution for all sales channels. While some members undoubtedly will think restriction, rather than expansion, of credit is a step in the wrong direction, this debate at least acknowledges the current grossly unfair situation where wholesalers may ask for any credit terms from wineries that ordinary commercial laws allow, while no credit whatsoever is allowed for retailers. We hope some of the many of you who also are members of the WWI will ask why the credit terms allowable for wholesalers and retailers should not be exactly the same.

Direct Shipping by Retailers

This bill would have allowed out-of-state wine retailers to ship wine directly to Washington State residents. We believe that, in a state with two percent of the nation’s consumers and a growing wine industry that already produces 4.5 percent of American wine, nothing is more important than market access. Given the nationwide efforts by the wholesale industry to block all other channels of sales, and given continued nationwide consolidation in the wholesale industry itself, we believe that Washington should help lead on this issue and join the roughly 16 other states that presently allow direct shipping by retailers. Retailers not only offer higher margins to wineries, but may also have the economies of scale to make the expense of interstate direct-shipping compliance worthwhile where a winery shipping a few cases of wine to a given state cannot justify the cost on its own.

Originally, this bill was drafted to allow importers and wholesalers to ship direct to consumers, as well (since there was no logical or public-interest reason to exclude them). Based on criticism from the Washington Beer & Wine Wholesalers Association, we amended the bill to limit direct shipment to retailers only. What was shocking was not so much that the Washington Beer & Wine Wholesalers Association continued to oppose the bill, but that, even after this amendment was offered, the Washington Wine Institute also opposed the bill. As we understand it, the WWI’s concern relates to uniform pricing. In other words their concern is that Washington Wineries might discount their wines to out-of-state distributors, who will sell the wine to out-of-state retailers, who will then be able ship the wines back to Washington to make a profit and still undercut prices for the same wines at Washington retailers. Whether this rather convoluted, far-fetched scenario is a correct interpretation of the WWI’s concern or not (you may watch the video recording of their testimony for yourself), we believe that the WWI is simply and clearly wrong on this issue. Given the recent court ruling in favor of a Texas law discriminating against out-of-state retailers, it is apparent that the legal system will not open up retailer direct shipping in general any time soon. Such relief may have to come through legislation. In any event we will continue to vigorously support the rights of wineries to sell, and consumers to purchase, wine through every legal channel.

Craft Winery Act

This bill would have allowed wineries producing less than 25,000 gallons per year to voluntarily opt out of most of the tied house money’s-worth and advertising restrictions in Washington state liquor laws while leaving these wineries subject to all public safety regulations. In an effort to move this bill, which we have introduced previously, we explicitly left the ban on credit in place. Despite these significant compromises, the criticisms remained, and the bill did not receive a hearing. Many of the legislators we have approached about this concept have been uncomfortable with the broad range of restrictions removed by this bill in the face of continued opposition. While the FWWS Board would strongly prefer not to make a career out of solving these many issues, and to fix them all at once, we must heed the advice of our friends in the legislature. We will, therefore, be talking to you in our regional meetings this summer about which elements of tied-house restrictions are the most problematic to you, and revising the Craft Winery proposal accordingly.

OTHER LEGISLATION

The following bills affecting the wine industry passed the legislature last session:

Restaurant Corkage-Free Zones

The Washington Restaurant Association sponsored a bill allowing restaurants to selectively waive corkage fees for regional wines. While we wholeheartedly supported this bill, that it was even necessary serves as the best poster child imaginable for illustrating exactly what is wrong with Washington’s tied-house laws. Recent enforcement actions by the Liquor Control Board were predicated on their determinations that “corkage-free zones” established by regional winery associations in Yakima and Spokane were illegal gifts of money’s-worth (promotional consideration) by wineries to another tier. This bill fixes the tied-house/money’s-worth issue with yet another narrow exception in the statute.

Sampling at Farmers Markets

The farmers market folks ran and passed a bill establishing a pilot program to allow tasting of wine in farmers markets where winery sales previously have been allowed. Presently, such sales are allowed in a limited number of farmers’ markets based on the percentage of vendors selling produce, among other factors. We enthusiastically supported this bill and believe that the allowance for sampling will greatly increase the value of farmers markets as a venue for wine sales.

2011 “Omnibus” Wine Bill

The multi-party 2011 “Omnibus” wine bill provided an annual laundry list of technical corrections to the RCW, two of them related to wine. The first fixed a rather bizarre interpretation of the word “agent” in the law regulating wineries’ sales agents. Contrary to the normal definition of an agent as an unrelated party acting on behalf of an individual or company, the previous statute allowed only sole proprietors to represent their wine to buyers. A literal interpretation of the statute would have required that a winery obtain agents’ licenses for company officers, employees, and even, incredibly, owners, if the winery was organized as a corporation, partnership, or LLC. This technical fix, which was unopposed, corrects the definition. The practical effect is nil. You will still need agents’ licenses for non-distributor, non-employee representatives, in other words, for the people you probably already have agents’ license for.

The second technical fix allows payment for wine sold at Special Occasion licensed events to occur at the end of the event and eliminates the prepayment or temporary check (due on receipt) at such events. It further allows charities or their event organizers to charge “reasonable” promotional or “booth” fees to participating wineries. We have lingering concerns about four elements of the language adopted in this fix. First, we are concerned about the inclusion of the word “reasonable” in relation to booth fees. We believe this is essentially a throw-away word, but that its inclusion will require the WSLCB to establish and administer rules for the arbitration of what constitutes “reasonable” fees. It remains to be seen whether and to what extent this will be an issue, but we believe that, based on past experience when such fees were routinely charged, a reasonable fee is simply what participants are willing to pay to participate. Our second concern was to clarify that the fee could be paid directly to a promoter (who, unlike a charity, probably has the means to take such a fee online by credit card). The Liquor Control Board testified previously that this was their interpretation, and we will follow up during the rule-making process to see that this is clarified. Our third concern is with timing of payment. We had earlier proposed that charities be allowed to send a check after the event, both for “humanitarian” reasons, given that checks are now cut at the end of the event, late at night when participants and organizers alike are exhausted, and to allow larger organizations with rigid accounting rules to process checks during their work week. It is our experience that such groups avoid running wine stores at Special Occasion events because their controllers are not available on weekends or at night to write checks. We finally sought to clarify that the checks may be issued once at the end of multi day Special Occasion events rather than at the end of each day. The current law is quite clear that a separate Special Occasion License and fee is required for each day of a multi-day event. We proposed an amendment to the sponsor of the bill to address these concerns, and, when this proposal was rejected, we chose to accept the bill as-is rather than potentially offend this legislator by offering an unsolicited amendment. We will attempt to address all of these issues in the rulemaking process. Otherwise, we will work to correct them in future omnibus bills.

As always we welcome your questions and comments.

Kent Cornucopia Days

2011-06-13T16:09:00.000-07:00

Dear FWWS Members,

This is a reminder to sign up to pour in the FWWS wine garden at Kent Cornucopia Days. This is a great summer promotional opportunity in Washington's most populous county and more importantly one of the few such events at which wineries stand to actually make some money.

To recap, this event takes place July 8, 9 and 10 in downtown Kent. This street fair closes most of the downtown streets and attracts between 250,000 and 300,000 people. Other highlights are:

FWWS member wineries will be able to pour (and sell bottles of) up to three wines.
Pours will be by tickets (scrip) so you will be paid for pouring wine.
You will be paid at wholesale for wine sold at the wine store.
No table or "promotional" fee.
No certificate of insurance is required (FWWS maintains liability insurance for member wineries at FWWS events).
FWWS wine garden will be included in festival maps and other promotional materials.

We presently have the following wineries signed up:

Lost River Winery
Wilridge Winery
Nota Bene Winery
Willis Hall Winery
Gingko Forest Winery
Challenger Ridge Vineyard & Cellars
Horan Estates Winery
Tiger Mountain Winery
Northwest Totem Cellars
Wedge Mountain Winery
Stina's Cellars
Madsen Family Cellars
Windy Point Vineyards
Naches Heights Vineyard & Winery

If you are not on the above list and want to attend (or if you are on the list and your plans have changed and you will not be attending) please contact us at board@familywineriesofwashington.org. In compliance with our special occasion license we need to provide a complete list of participating wineries to the WSLCB no later than June 30th so this will be the only general reminder. Future details about this event will be sent only to those confirming attendance. We look forward to a great event and seeing you in Kent!

The FWWS Board

TTB Newsletter May 11, 2011 Special Edition

2011-05-24T15:54:00.000-07:00

TTB Accepts $1.9 Million to Settle Violations of the Federal Alcohol Administration Act

Dear FWWS Member,

When the subject of the state's tied house restrictions on wine trade are debated, opponents to reform of these prohibition era laws often object by citing the potentially negative trade practices that could result in their absence. During the recent debate over Initiative 1100, which would have done away with these restrictions at the state level, opponents raised the specter of all sorts of disastrous results, including retailers extorting gifts from wineries and the infamous "slotting fees," or charging of rent for shelf space. FWWS pointed out at the time that all these undesirable trade practices would remain illegal under federal law even if the much broader state restrictions were eliminated.

The linked recent TTB circular shows not only that we were correct in our assessment of federal law, but further that these laws have teeth and that the federal government is serious about enforcing them.

As we move the debate forward and attempt to make progress in tied house reform through legislation such as our voluntary craft winery proposal, we hope that this information will give you confidence in defending the position that, despite the claims of those who favor the status quo, the sky will not fall if Washington State’s over-broad and unduly restrictive tied house laws are eliminated in favor of the much more fair federal tied house rules.

The FWWS Board

Kent Cornucopia Days Wine Tasting

2011-04-27T14:18:00.000-07:00

Hello Family Wineries,

We have exciting news! We have been asked to organize a wine tasting event for the Kent Cornucopia Days street festival to run for three days in July: Friday, July 8th thru Sunday, July 10th. Our sales and tasting plan will be similar to the one we organized for the Enumclaw Chocolate Festival two years ago. We are hoping to have 20 FWWS wineries participate and expect to do a brisk tasting business during the festival. We are told the attendance approaches 250,000 people with most attending on the weekend. The event organizers are very excited about having wine tasting this year.

The event is organized and run by the Kent Lions Club and is an extremely big deal for them. The event is run as a charity fund-raiser and entertainment event for the city and the area with lots of food and crafts booths. The Lions Club is very happy to have us on board and has arranged for us to be located in a very attractive parking lot next to the park on Railroad Ave. This is the heart of the event and should give us good foot traffic.

Once again this will be a scrip sales event. Tasting prices will be at the discretion of the winery and will be split with FWWS. While we will also have a wine store for off-premise sales, the scrip sales should make this event substantially more economically attractive for wineries than a typical event with bottle shop only. More details on the event including scrip and wine shop setup will be forwarded later to participating wineries.

Please email us at board@familywineriesofwashington.org to reserve your place. Though by the time of the event charging table fees for special occasion events will likely be legal, we will not be charging a table fee. We may, depending on interest, charge a modest place-holding fee that would be fully refundable at the end of the event, assuming you participate for the full three days. Since this event will be open to FWWS member wineries only, certificates of insurance will not be required (the organization maintains festival insurance covering members at FWWS events as another benefit of membership).

This is an outdoor event, so we will also be providing tents to protect us from the sun.

Estimated run times for the event are Friday, 4:00-8:00 pm; Saturday, 1:00 – 8:00 pm; and Sunday, 1:00 – 6:00 pm.

More info to come as we get closer to the event.

HR 1161: The Great Constitutional Head Fake

2011-04-20T14:11:00.000-07:00

Though we are acting locally in the battle for sanity in wine trade, this is what the opposition is doing nationally. Please write your congressional representative and Senators!

http://bit.ly/hhDcFX

Spring Safety and Regulatory Update Part Two

2011-04-19T11:43:00.000-07:00

Licensing and Agent Requirements

There has been considerable confusion recently with regard to the licensure requirements for winery owners and employees when pouring or selling their wine. The locations in question include the following:

Winery on-premise (at the licensed winery facility) tasting rooms
Winery off-premise or secondary tasting rooms
Special occasion licensed events
Specialty beer and wine shops
Restaurants with spirits/beer/wine licenses
Restaurants/stores with beer/wine licenses
Grocery stores falling under the new sampling law
Your distributor’s premises
Industry trade shows where wineries pour for licensees (distributors or retailers)

Here is what you need to know about your requirements for each location:

Class 12 Server’s Licenses obtained through “Mandatory” Alcohol Server Training (MAST)

Of the above locations, the only ones for which Class 12 permits are required for winery owners and employees acting for the winery are winery off-premise tasting rooms and grocery stores using the new sampling permit. Class 12 permits are not required at your on-premise tasting room. The requirement for such server permits at off-premise tasting rooms and grocery stores was specifically included in the laws enabling each of these programs.

FWWS has consistently drawn a line between liquor laws focusing on public safety, which we support and seek to make simpler and more effective, and liquor laws restricting trade in wine, which we generally oppose. Server training clearly falls in the first category. Similar to first aid and CPR training, it is difficult to see any downside of MAST for you and your employees at either your on-premise tasting room, or at special occasion events where we can help non-industry members of non-profit organizations understand the rules and hazards of pouring wine. The FWWS Board encourages you to take a mandatory alcohol server course. These are available from numerous private vendors and now are also available online. Information on MAST providers can be found at the following link:

http://bit.ly/hTCEmI

Class 8 permits

Class 8 permits allow winery owners and their employees to pour wine for licensees at trade shows which are not open to the general public. This permit appears to have been developed as a way of getting around the “money’s worth” prohibition in the liquor statute as well as the general prohibition on giving away alcohol for free in cases where admission is not charged. Since alcohol has a monetary value, and since there is no specific carve-out for trade shows (as there is, for example, for giving away a sample bottle of wine of each vintage), pouring wine for licensees is, in this case, an illegal gift.

This is yet another unintended consequence of the blanket money’s worth prohibitions in the statute. Our Craft Wineries proposal, which provides a comprehensive solution to the money’s worth issues, has faced consistent opposition from some in the industry. We will speak to the liquor Board in the coming months to explore their views on finding an alternative to class 8 permits for such trade shows. Most likely this would involve yet another “carved-out” exception to money’s worth restrictions. Given that trade tastings are vital to wine promotion, involve only licensees, and benefit all tiers of the industry, we do not see any reason that this would be a controversial approach to replacing the Class 8 permit, which serves no other purpose.

Agent’s Licenses

It has come to our attention that the WSLCB interprets current law to require that winery owners and their employees (exception: winery owners whose business is structured as a sole proprietorship) must obtain a WSLCB agent’s license to “canvass for, solicit, receive or take orders for” wine. Rather than confuse this issue with a discussion of the present interpretation, we will look to the near future. There is a provision in this year’s “omnibus” liquor law that specifically clarifies that winery owners are not required to appoint themselves or their employees as “agents” for the purpose of representing themselves in soliciting and taking orders for wine. This bill is presently on the Governor’s desk, and she is expected to sign it. We have clarified with WSLCB enforcement staff that, assuming this bill is signed as expected, the WSLCB does not intend to enforce the current interpretation in the interim before rules (WACs) are adopted to implement the new law.

We should point out that an agent’s license will still be required for non-employees who “canvass for, solicit, receive or take orders for” your wine - in other words for the sort of people and activities that many of you probably currently have agent’s licenses in place for.

Spring Safety and Regulatory Updates

2011-04-19T11:30:00.000-07:00

Dear FWWS Member,

We have a fair amount of information to share with you regarding safety, regulatory, training and licensing issues. Since there are several topics to cover and the information is somewhat detailed, we will be breaking these topics up into several posts. This first post relates to the impending regulation of SO2 gas.

SO2 Regulation Update

The FWWS Board has been working proactively with the WSDA for over a year in regard to the inevitable regulation of sulfur dioxide used as a fumigant in wineries. We understand that WAWGG and other organizations have also been following this issue. We are presently working with WSDA staff in their pursuit of a grant to develop best management practices for wineries using SO2. Since we have a fair amount of information to share, and, more importantly, so that we don’t “bury the lead”, here are two important points:

What we are talking about here is gaseous sulfur dioxide used in fumigating barrels. All sulfur products except SO2 gas which are used in wine additions as an anti-oxidant or anti-microbial are Generally Recognized as Safe (GRAS) by the USDA and are not being considered for further regulation at this time. These other non regulated sulfur products would include Potassium Metabisulfite, Sodium Bisulfite, and Liquid SO2.
There are presently no formulations of gaseous SO2 that are “labeled” for use as a pesticide in Washington State so, at the present time you do not need to do anything specific for regulatory compliance. Obviously you should continue to use all appropriate and common sense worker protections measures such as protective clothing, proper ventilation and respirators (acid/gas or air supplied).

Background

Fumigants such as sulfur dioxide are regulated as pesticides under the FIFRA (Federal Insecticide Fungicide and Rodenticide Act). Compliance with this act within Washington State is administered by the Washington State Department of Agriculture. Factors used in considering labeling restrictions for a specific substance include such things as physical properties (i.e. SO2 gas is heavier than air), cumulative risk, effects on drinking water, and human health risks (an obvious concern with SO2 gas).

In 2007 the EPA determined in a Registration Eligibility Decision that regulatory rules for inorganic sulfites, which include sulfur dioxide, sodium bisulfite and potassium metabisulfite, could be re-issued, provided that label rules are followed and that products are properly labeled.

In February of 2010, WSDA issued an “Important Notice to Washington State Wineries and Sulfur Dioxide Use Fact Sheet”. This served as notice that further SO2 regulation was inevitable.

SO2 falls into 2 categories, pesticidal and non-pesticidal.

Gassing barrels and corks to sanitize them or to control spoilage organisms is a pesticidal use and will be regulated.
Additions to wine not using gaseous SO2 are GRAS (Generally Recognized as Safe) and are not being considered for further regulation.

Use of SO2 gas requires handlers to be trained in its use. If more than 2 ppm are present in the fumigation area air, use requires full face respirator with an organic vapor cartridge, SO2 impervious gloves, long pants and sleeves. If more than 10 ppm are present or if concentrations are unknown use of an air supplied respirator is required. This applies to all people in the fumigation area. This is all based upon the EPA registration and more specifically the one currently labeled SO2 pesticide available in California. WSDA staff is hopeful that any product labeled for use in WA might not be quite as restrictive regarding the supplied air respirator requirement.

At the present time there are no gaseous SO2 products that have label approval for use in Washington State so the WSDA is not presently enforcing regulation of its use. Inevitably this will change when a label approval is issued. At that time, those using SO2 gas will need to follow appropriate pesticide applicator licensing rules. This licensure will fall into two categories:

A Private Applicator’s License will unfortunately be allowed for those using entirely estate fruit only. This license requires one exam. The rules require that the licensee be “available” during application. WSDA enforces this requirement in orchards, for example, by allowing the licensed supervisor to be available by cell phone.
A Private Commercial Pesticide Applicator’s License will be required for all others. This requires two exams and includes a fumigation endorsement. The good news is that WSDA staff assures us that the test can often be taken at the same time and is not considerably more difficult. The rules here require that the licensee supervision must be within eye and ear shot of the application.

We have previously discussed with WSDA staff the fact that many wineries are not overly familiar with pesticide regulations and the desirability of WSDA developing best management practices which take into account the practical realities facing Washington wineries, methods, equipment, record keeping etc. WSDA recognizes that we are already a heavily regulated industry and that we all want to be in compliance. WSDA is actively seeking a grant from the specialty crop block grant funds to develop and implement such guidelines. The concept in the grant proposal envisions a three step process to be implemented over roughly three years:

Step one: Compiling Information. On site testing. Setting parameters, researching methods and protective equipment and establishing BMPs.
Step two: Presentation of BMPs to the industry.
Step three: Implementation through technology transfer and technical assistance for individual wineries.

The FWWS Board has submitted a letter supporting this application and we will keep you informed of the progress.

Washington Farm Bureau Health Insurance

2011-04-11T11:23:00.000-07:00

Dear FWWS Members:

Our organization is pleased to offer you a health insurance option through the Washington Farm Bureau. You can take advantage of this health insurance coverage at affordable group or individual rates.

Please go to http://bit.ly/g6jOGJ and select either the individual or group coverage options to connect for a quote and to enroll.

Your FWWS Board in cooperation with the Washington Farm Bureau

Welcome New Member Vinyl Wines

2011-04-07T11:24:00.000-07:00

I am pleased to welcome our newest member, Vinyl Wines, to the FWWS. Here is some information on them:

From the beginning, Vinyl Wines has had one focus: to offer a new wine experience for consumers. Knowing that it is difficult to reinvent the wheel, we have decided to take the wine industry to a new level. Wine is our passion and we strive to make wines that are not only delicious, but also indicative of the vineyards that we source from. Our other passion is music; from the rhythms to vocal patterns and guitar riffs, music is what moves us on a daily basis. Here at Vinyl, we have decided to bridge our two passions into one product and share it with the world. We hope that you, your friends and family enjoy the wines that we have made and the music that we have selected to share. Here’s to the new generation of the wine and music industry; where the two become one.

http://www.vinylwines.com

Welcome to the org!

Florida Shipping Threatened

2011-04-06T15:31:00.000-07:00

Dear FWWS Member,

Linked below is an alert from freethegrapes.org regarding a proposed law restricting direct shipment of wine in Florida. We are alarmed that this potentially devastating law has gotten as far as it has. Florida is presently one of the best places in the country to ship wine. No permit is required, and you need file and pay taxes only in the month following the months you actually ship wine. Florida is also the fourth most populous state in the country and inevitably poised to take the number three spot from New York. This is a very serious threat to the right of self distribution and to consumer choice. We urge you to forward the sample letter in the alert below to your Florida customers immediately.

http://bit.ly/fqfvc3

WSU Extension Enology & WA Wine Technical Group Presents: 2010 A Vintage in Review

2011-04-06T15:14:00.000-07:00

WSU Extension Enology & WA Wine Technical Group Presents: 2010 A Vintage in Review

April 19, 2011 8:00 am - April 19, 2011 12:15 pm
IAREC, 24106 N. Bunn Road, Prosser, WA

This is a half-day event designed to discuss the difficult 2010 vintage. The event will feature
respected winemakers providing their opinion about the vintage and two technical discussions about strategies for dealing with high acid fruit and moldy or Botrytis infected fruit. There will be two panels at the end of each technical session and final comments by the president of the Washington Wine Technical Group. After the workshop is complete there will be a tour of the WSU Prosser Enology Winery and newly renovated laboratory with Dr. Jim Harbertson and Thomas Henick-Kling on hand to explain the new developments.

http://bit.ly/hpw5jJ

Wholesale Robbery in Liquor Sales

2011-04-06T10:50:00.000-07:00

Dear FWWS Members:

The following article from the New York Times shows that we are not alone in our concerns, but are merely thinking globally and acting locally in our fight for market access and consumer choice.

Your FWWS Board

http://nyti.ms/dRyCPl

Legislative Update

2011-03-31T13:22:00.000-07:00

Dear FWWS Members,

We are still in the thick of the legislative session, and being an all volunteer organization, we're sure you will understand we are all stretched pretty thin at this point. We do want to give you a quick update on the session.

Once again, the Washington Beer and Wine Wholesaler's Association joined the Washington Wine Institute in opposing three of the four bills we introduced this year. None of these bills made it out of committee, though we were encouraged that more and more legislators and interest groups are understanding the issues and pushing back against the status quo. Once the session ends and we can see what shakes out, we will be giving a much more detailed report on these bills, the support and opposition, and the arguments for and against. We will also give an an overview on a number of other wine-related bills that were introduced this session.

Our one year tax reporting bill fared significantly better. Though we received no support for this bill from the above noted groups, we at least had no opposition. This bill passed out of the Senate Labor, Commerce and Consumer Protection Committee, the Senate Ways and Means Committee (a milestone given the fiscal note attached to the bill and probably due in no small part to Senator Adam Kline's personal testimony), and finally the Senate Rules Committee. Unfortunately, the bill did not pass out of the rules committee until the last possible day and died on the floor for lack of a vote before the cutoff deadline. Presently, we are attempting, through our legislative supporters, to have this bill attached to another bill by amendment. Though there is no opposition to the bill, this is a bit of an uphill battle.

As stated earlier, we will be giving a detailed recap of the good, the bad, and the ugly once the session ends. We will also be giving well-deserved kudos to the hard work of our growing number of supporters in the Legislature. Stay tuned.

Your FWWS Board

Spring 2011 Herbicide Drift

2011-03-28T13:43:00.000-07:00

Dear FWWS Members,

We received the attached letter from the Washington State Department of Agriculture who asked that we forward it to our members. It contains important information regarding potential herbicide drift damage to those of you with vineyards and the ways in which you may be able to protect yourself from the economic damage. If you have any questions or require further information, please contact Bruce Olson at BOlson@agr.wa.gov

Sincerely,

Your FWWS Board

Attention Washington Grape Growers!

The Washington State Department of Agriculture (WSDA) requires your cooperation before we can assist you with an investigation. It is essential that the complexities of herbicide damage to grapes are understood by grape growers, as well as their need to adequately prepare appropriate information regarding their grapes prior to filing any complaint with WSDA personnel.

No one expects their crop to be exposed to herbicide injury, but it occurs, somewhere, every growing season. Damage from herbicide drift can cost a grower hundreds of thousands of dollars in crop loss, reduction of wine or juice quality, and serious harm to grape vines that can reduce future production. Traditionally, it has been phenoxy herbicides, such as 2,4-D, that have been responsible for the bulk of herbicide damage observed on grapes, but now more damaging chemistries are available for use in this region. Among them is a chemistry that interferes with nitrogen metabolism, thus rendering useless the application of water and additional nitrogen to herbicide affected vines.

It is of utmost importance that you fully understand both the quantity and quality of information required before a thorough and effective investigation can proceed through authoritative means, such as an investigation. WSU-FEQL and WSDA-PMD research has provided grape producers with the tools to provide critical and necessary data for any investigation’s proper procedure. Producer observations are management tools for critical decisions regarding irrigation, nutrition, and reliably reporting information to WSDA.

When an exposure to an herbicide occurs there is a critical lag time between the exposure event and the subsequent expression of symptoms. During this same time period perhaps hundreds of pesticide applications may have occurred that are similar or identical to the one affecting the grapes in question. Most critical herbicide exposures occur over a 12 week period beginning with bud break, but some may occur later in the growing season. It also must be considered that modern pesticides are rapidly metabolized by the affected plants and degraded in surrounding areas, thus making reliable laboratory analysis difficult or impossible to achieve. With this in mind, it is essential that WSDA personnel will only accept crop history data, from bud break onward through each leaf emergence (leaf indexing), which has been collected by on-site vineyard personnel.

Washington’s grape growing regions are not protected by isolation. Grapes are sensitive to many pesticides used to produce other crops both locally and throughout the agricultural region, including other states. WSDA strives to protect grape production through the restriction of phenoxy herbicides for use by only certified applicators and through various county rules that apply to nozzle/pressure use, daily start and stop times to avoid air temperature inversions, and more. Also bear in mind that many out-of-state based pesticide applicators working in Washington are unaware or avoidant of local conditions and/or state requirements, and pesticide applications which occur on Federal lands do not fall under WSDA purview.

It is necessary that growers realize and appreciate the enormity of evidentiary requirements faced by an investigator in any complaint scenario and the utmost importance of accurate and detailed information gathered by grape growers prior to filing a complaint. Failure to provide this required information to an investigator renders it impossible to proceed with a fair and accurate investigation. WSDA investigators approach each investigation with the knowledge that its findings may be pertinent to litigation. The most WSDA can do for a grape grower not performing the required leaf indexing is simply documenting the allegation(s) of a complaint without investigating any of its elements. Remember, “It is a violation of WSDA rule to provide false or fraudulent information.”

Please familiarize yourself with the training and reporting information provided at the WSU-FEQL website (http://feql.wsu.edu/eb/index.htm). If you require further assistance contact a WSDA-PMD representative.

USDA National Organic Program

2011-03-23T13:12:00.000-07:00

The USDA National Organic Program has released their spring agenda and is holding an in-person public comment meeting in Seattle on April 26-29. You can find their communication with all the pertinent details at:

http://bit.ly/f113RJ

Legislative Hearing

2011-02-16T16:24:00.000-08:00

FWWS has 3 bills that will be reviewed in a public hearing. We encourage all of our members to show your support by attending and testifying. Here are the details:

State Government & Tribal Affairs - 02/17/11 10:00 am
Full Committee
House Hearing Rm E
John L. O'Brien Building
Olympia, WA

Public Hearing:
1. HB 1436 - Providing limitations for the imposition of regulatory civil penalties.
2. HB 1770 - Enhancing small business participation in state purchasing.
3. HB 1372 - Concerning methods of payment for purposes of the alcohol beverage control statutes.
4. HB 1373 - Concerning the tax payment and reporting requirements of small wineries.
5. HB 1482 - Concerning wine shipments.

In addition, we need to request a hearing on our annual tax reporting bill, SB 5259, from the Senate Ways and Means Committee. Please support this bill by emailing members of the Senate Ways and Means Committee to support our legislation and ask Sen. Murray for a hearing on the bill.

Thanks!

Welcome New Member Horan Estates Winery

2011-02-11T16:28:00.000-08:00

I am pleased to welcome our newest member, Horan Estates Winery, to the FWWS. Here is some information on them:

In the year 2000, Doug McDougall planted an organic apple orchard on the south slope of the Frenchman Hills not far from Royal City, Washington. At the same time, he lined out about 2 acres of Syrah wine grapes on land near his orchard on Frenchman Hills, just to see how they would turn out. The first vintage was produced in 2002, and Doug sold the small amount of grapes to a well known winemaker from the Tri-Cities area. When the winemaker praised the high quality of the grapes he had received, Doug, along with his wife Diana and dear friends Ross and Kelly Riedinger, decided to start a small winery in Wenatchee Heights, beginning with the 2003 crop. They named the winery Horan Estates, paying tribute to Doug’s mother’s side of the family, who had historical ties to the Wenatchee Valley since the late 1800’s. In the fall of 2010, Doug's cousin, Beth Dobbs, joined with the McDougalls to help with the marketing of Horan Estates award winning wines to local wine shops and restaurants.

The 2003 and 2004 vintages were composed of grapes from the Frenchman Hills vineyard and another vineyard in Mattawa, Washington that Doug had planted on orchard property he co-owned and managed for other owners. From 2001 until 2004, Doug planted additional acreage at the Frenchman Hills site, now known as the Westhill Vineyard. Due to the quality of the grapes produced here, this vineyard has been the sole source of grapes vinified by Horan Estates Winery since 2006. The 8 acre vineyard is planted to Syrah (the dominant variety), Cabernet Sauvignon, Merlot, Cabernet Franc, and Viognier. In 2011, Doug hopes to replant the Mourvedre, Cinsault and Counoise to Malbec, a great blending and stand alone Bordeaux varietal now in high demand in the marketplace.

Since producing its first vintage in 2003, Horan Estates Winery has concentrated on the crafting of three red wines. The first is CWM Syrah, named after the McDougall’s only son, Corey Wayne McDougall, who passed away in December, 2003 after a tragic snowmobiling accident. The HVH Red Blend is dedicated to Doug’s grandmother, Helen VanDivort Horan, who passed peacefully in January, 2004 at the age of 100. The third is Cabernet Sauvignon, made from the five clones planted in the vineyard.

http://www.horanestateswinery.com

Welcome to the org!

Welcome New Member Golden Ridge Cellars

2011-02-11T16:27:00.001-08:00

I am pleased to welcome our newest member, Golden Ridge Cellars, to the FWWS.

Welcome to the org!

Welcome New Member Isenhower Cellars

2011-02-09T13:49:00.000-08:00

I am pleased to welcome our newest member, Isenhower Cellars, to the FWWS. Here is some information on them:

Seeking a life that harnessed their combined backgrounds in chemistry and business, Denise and Brett Isenhower spent two years researching where to make wine in the Western United States. Washington was selected because it is the most entrepreneurial region to craft world-class wine. In 1999 the Isenhower’s founded Isenhower Cellars in Walla Walla because it is the most attractive town in Eastern Washington.

Denise and Brett built their winery in 2002 on six acres of farmland south of Walla Walla. The initial planting of the Isenhower Estate Vineyard was two acres of Malbec (2008) with more acreage to follow. The Isenhower‘s long-term goal is to grow half of their own grapes and purchase the remainder from their outstanding vineyard partners.

Isenhower Cellars has long-term “by the acre” contracts with seven excellent vineyards whose farmers are absolutely committed to growing outstanding grapes in an environmentally sustainable manner. Denise and Brett work closely with the farmers to make wines that reflect the essence of the vineyards.

All the grapes are hand picked and hand sorted prior to fermentation. Isenhower Cellars does not use modern winemaking chemicals and enzymes to make wine. White wine and Rosé are aged exclusively in stainless steel tanks to retain vibrancy and avoid oaky flavors.

Red wines are aged in tight grain French Oak barrels, predominately used and impart limited oak flavors. Denise and Brett minimally rack (transfer wine from barrel to barrel) allowing the wines to age very well.

Denise and Brett Isenhower produce unique wines that reflect the essence of the vineyards of Eastern Washington. The individual wines are based on Cabernet Franc, Cabernet Sauvignon, Grenache, Merlot, Roussanne, and Syrah.

http://www.isenhowercellars.com

Welcome to the org!

Legislative Update

2011-02-03T11:02:00.000-08:00

Dear FWWS Member,

Last Thursday all four of our current bills received a hearing before the Senate Labor, Commerce and Consumer Protection Committee. While this is great news, the Washington Wine Institute, the Washington Beer and Wine Wholesaler’s Association and others testified against three of our bills. Additionally, the WWI has reportedly briefed their membership specifically in regard to their opposition to these three bills. We certainly respect the right of the WWI and others to oppose our bills, and we welcome specific criticism and input. However, we believe many of the points raised by the WWI reflect a fundamental misunderstanding of our bills. To set the record straight and for the benefit of our members, particularly those who are also WWI members, we offer the following information:

SB-5258 Concerning Methods of Payment for Alcoholic Beverages (“Payment Parity Act”)

A winemaker and WWI Board member testified in regard to this bill as follows:

“As I understand it, there are no enforcement mechanisms in this legislation in the event that I was to not receive payment. I have no accounting department; I have no process for tracking down unpaid invoices. Some might argue that this is only five days, but for my husband and I who depend on prompt payment, ‘the check’s in the mail’ just won’t work for us.”

The fact is that under our Payment Parity Act, the status quo remains due-on-receipt. Our bill would give wineries the option of entering into a written agreement with individual customers to allow one business day, not five, to mail a check. The five day period is for completion of the transaction (receipt of the check). These are the existing terms for Electronic Funds Transfers (“EFT’s”) and are not being changed by our bill. We just want the same terms applied to checks as well. Presently, if you choose to leave a case of wine with a customer without receiving payment, you are breaking the law, and you have no recourse for payment whatsoever. Under our bill, if you have a customer who is difficult to connect with on delivery, and if they are mutually agreeable, and if you enter into a written agreement with them, you can receive payment after the fact. If they fail to pay you, they, not you, are in violation, just the same way that they would be in violation if their check bounced, and with the same enforcement provisions. The full force of the liquor code applies, including licensing sanctions. The current law does not change under our Payment Parity Act. The bill does not represent an expansion of credit; it represents an expansion of convenience equivalent to that extended in 2009 for EFT transactions.

Senate Bill 5257 Concerning Craft Wine and Wineries

Critics claim that this bill “Declares that wine made by wineries producing less than 25,000 gallons a year can be declared ’not wine’ and therefore not regulated by state liquor laws, except a handful of laws that are specifically referenced. The bill would create two separate and unequal regulatory schemes for WA wine producers, disturbing our in-state marketplace.”

In fact the bill would allow wineries under 25,000 gallons, at their option, to register as Craft Wineries. Wine produced by such wineries would be defined as “Craft Wine.” Every public safety and tax related regulation in the code remains applicable to Craft Wine. Over-serving, serving of minors, premise and server licensing, tax collection, abatement, and enforcement regulations all remain applicable under the Craft bill. Two classes of wine will be created by the legislation, craft wine and all other wine, but both are still plainly “wine.”

Another criticism was raised by the WWI at Thursday’s hearing to the effect that that small wineries would suffer if there was another class of wineries operating in the marketplace with a separate set of regulations that could foster harmful practices “such as the now-illegal pay-to-play.” In fact so-called “pay-to-play” practices, such as slotting fees and volume discounts not reflecting the cost savings in delivery, are already prohibited by federal law. FWWS welcomes specific suggestions by the WWI to ensure that federal prohibitions could be redundantly applied to Craft Wine under State law. For one example, we would have no objection to a statement that slotting fees are prohibited for Craft Wine.

The WWI has consistently defended the current “Tied-House” and “Money’s-Worth” rules in the liquor code as valuable protections. Many of us at FWWS believe these rules offer no protection at all but rather are hindrances to innovation and marketing. The recent “Corkage free zone” issue is just the latest in an unending stream of good ideas that run afoul of these restrictions. While we do not object to differences of opinion on this point, those who view the current laws as protections simultaneously imply that voluntarily giving up such protections will confer an advantage on those opting out. Both diametrically opposed positions cannot possibly be true. The Craft Winery bill will give small wineries the option of deciding for themselves whether the current laws protect or hinder their business.

Senate Bill 5256 Concerning Wine Shipments

A WWI Board member and winemaker testified that “The bill would allow virtually anyone to ship wine; out-of-state distributors, retailers, importers, wineries, anyone with a liquor license in any state. This would put WA retailers and distributors that currently follow WA laws at an unfair economic disadvantage.”

The bill was written to allow distributors and importers, as well as retailers, to obtain licensure to ship to consumers in Washington. It was our belief that there is no good reason to prohibit such sales. However, in response to comments by the WWI and the Beer and Wine Wholesaler’s Association, FWWS has expressed willingness to amend the bill to eliminate the right of Distributors and Importers to direct ship.

Providing a legal means for out-of-state retailers to ship to Washington residents will not put Washington retailers at a disadvantage. Right now, any such retailers cannot possibly pay Washington State sales tax (since they cannot do business in Washington legally). With a legal method to make sales and to collect and pay taxes, retailers will have a level playing field. The primary beneficiaries will be the public, who will get adult signatures and payment of taxes. Ultimately, Washington wineries and retailers will benefit greatly as this concept spreads to other states that observe the benefits and institute similar laws, thus providing other opportunities for selling Washington wine.

In conclusion, FWWS’s bills will improve the ability of Washington’s small wineries to sell wine and expand their freedom of choice in how to do so. We continue to welcome constructive criticism from our colleagues in the industry. We have already incorporated amendments in these bills to address concerns expressed by the Washington Wine Commission and the California Wine Institute. We stand ready to consider further amendments to incorporate specific changes should such be suggested by other industry stakeholders.

We will keep you posted as these bills proceed through the legislative process.

FWWS News

2011-01-31T14:44:00.000-08:00

FWWS Offered Opportunity for Input on Open Wine Commission Position
All Proposed Bylaws Amendments Approved, Board Positions Open
WSLCB Announces Compliance Checks at Wineries

FWWS Offered Opportunity to Comment on Open Wine Commission Position

Last summer, an FWWS board member contacted State Agriculture Director Dan Newhouse. He was asked whether, in his view, RCW 15.88 allowed for FWWS to make recommendations for his consideration when making Wine Commission appointments. He agreed that it did, but since he was required by the RCW to make recommendations that "seek to ensure as nearly as possible a balanced representation on the commission which would reflect the composition of the growers and wine producers throughout the state as to number of acres cultivated and amount of wine produced," he would have to take into account the level of production represented by FWWS wineries. We hope to meet with Secretary Newhouse this year to discuss our view that the Commission composition, with positions already reserved for large wineries, already accomplishes this. That said, Mr Newhouse's attitude is very open and positive.

Pursuant to these conversations and correspondence, the Agriculture Department has informed us that Position 11 of the Commission is presently open, due to a resignation. RCW 15.88 requires that this position be held by a licensed Washington wine distributor. We need to make recommendations on a replacement candidate by February 3. Please contact us if you have any suggestions as to candidates who you believe have a good understanding of the needs of small and self-distributed wineries with regard to the Commission's work of promoting Washington wine.

All Proposed Bylaws Amendments Approved, Board Positions Open

Thank you all for your responses to the recent bylaws vote. All proposed amendments were approved. With the proposed changes to the board structure, there are currently two Board vacancies. One is for the new "consumer" member and is open to Associate Members. The other is a vacant position open to any voting member of the organization. Please contact the Board if you would like to be considered for election to the board. Please be advised that, since our dues structure does not allow for regular paid staff, this is very much a working position rather than an honorarium or an advisory position, and requires significant attention, time, and willingness to actively participate. Uncle FWWS wants YOU!

WSLCB Announces Compliance Checks at Wineries

Captain Jennifer Dzubay, the chief compliance enforcement officer at the WSLCB, recently announced that the WSLCB will be conducting compliance checks, with an emphasis on winery and brewery premises, over the coming months. FWWS has consistently supported the notion that the WSLCB should focus its limited resources on enforcement and education relating to public safety goals, into which category this compliance focus clearly falls.

While you are not required to obtain Mandatory Alcohol Server Training (MAST) permits for your on-premise tasting room staff (Note: MAST permits are required for off-premise tasting room staff!), we strongly encourage you and all of your staff to participate in MAST training. Captain Dzubay's email follows in its entirety:

From: Dzubay, Jennifer
Sent: Friday, January 21, 2011 3:55 PM
Subject: WSLCB - Compliance Checks Announcement

Please be advised that for the next two months we will be conducting Compliance Checks at winery and brewery premises. All compliance checks will be conducted with a youthful-appearing minor operative, ages 18 to 20 years of age, using their valid WA state drivers license.

We conducted this last summer and had a 46% non-compliance rate. We hope through our educational efforts, whether it is the MAST program or the responsible sales video, that we see an increase in the compliance rate this year.

As an educational tool, I'm enclosing a copy of Checking WA State ID, as well as a link below with a short little video on Responsible Liquor Sales.

We encourage you and your employees to review the enclosed material to help educate and prepare yourselves for these checks. If you have additional questions, please contact your local Liquor Officer for clarification.

http://www.liq.wa.gov/enforcement/responsible-liquor-tobacco-sales-video

Thank you!

Welcome New Member Frenchman Hills Winery

2011-01-31T12:17:00.000-08:00

I am pleased to welcome our newest member, Frenchman Hills Winery, to the FWWS. Here is some information on them:

The first commercial vintage of the Frenchman Hills Winery was the 2005 crop year with grapes from the Estate Owned Sentinel Gap Vineyards. Frenchman Hills Winery was licensed in January 2007.

Frenchman Hills Winery owner Norman Myrick and viticulturist/winemaker Larry Myrick take pride in the 100% varietally correct production. Focusing on the Ultra Premium Tier 1 and Premium Tier 2 full bodied red wines, the wine making style is a handcrafted fruit forward expression of the vineyard. The best grapes are hand selected for the Ultra Premium Tier 1 Program which includes Merlot, Cabernet Sauvignon, and Syrah. The Premium Tier 2 Program includes Merlot, Cabernet Sauvignon, Syrah, and Red Wine (a blend of 51% Merlot, 34% Cabernet Sauvignon, and 15% Syrah).

Shortly after bottling in January 2007 the Winery had a limited release of the 2005 vintage. This limited release was for test marketing and for a blind judging by Wine Press Northwest of the Tier 1 Syrah and Tier 1 Merlot. The Spring 2007 Spring edition of Wine Press Northwest rated the Tier 1 Syrah as Excellent and the Tier 1 Merlot as Recommended. Even with the successful l test marketing and extremely high ratings of the very young red wines, the winemaker decided to place the 2005 vintage back for cellaring and proper aging.

Frenchman Hills Winery formally released the 2005 vintage in October 2009. The Tier 1 Syrah was submitted to the 2009 Tri Cities Wine Festival for its annual blind tasting and was awarded the Bronze Medal. The Tier 2 Red Wine was submitted to Wine Press Northwest for blind judging. The Red Wine received a Recommended rating and was written up in the 2009 Winter edition.

The Winery is self distributed by agents to high end restaurants, wine shops, destinations resorts and direct shipping to retail customers and club members.

http://www.frenchmanhillswine.net/home.html

Welcome to the org!

Senate Labor, Commerce & Consumer Protection Committee Public Hearing

2011-01-21T09:51:00.000-08:00

FWWS has introduced 4 bills that have been referred to the Senate Labor, Commerce & Consumer Protection Committee:

SB 5256 - Concerning wine shipments.
SB 5257 - Concerning craft wine and wineries.
SB 5258 - Concerning methods of payment for purposes of the alcohol beverage control statutes.
SB 5259 - Concerning the tax payment and reporting requirements of small wineries.

The Labor, Commerce & Consumer Protection Committee is holding a public hearing next Thursday at 10 AM in Olympia (see information below). We encourage our members to attend and to testify before the committee.

We hope to see you there!

FWWS Board

Labor, Commerce & Consumer Protection - 1/27/2011 10:00 a.m.

Senate Full Committee
Senate Hearing Rm 4
J.A. Cherberg Building
Olympia, WA

Public Hearing:

SB 5156 - Concerning airport lounges under the alcohol beverage control act.
SB 5173 - Concerning the waiver of restaurant corkage fees.
SB 5285 - Concerning the issuance of liquor licenses for businesses located near schools.
SB 5302 - Modifying liquor permit and licensing provisions.
SB 5256 - Concerning wine shipments.
SB 5257 - Concerning craft wine and wineries.
SB 5258 - Concerning methods of payment for purposes of the alcohol beverage control statutes.
SB 5259 - Concerning the tax payment and reporting requirements of small wineries.

Possible executive session on bills heard in committee. Other business.

If you plan to visit the Capitol Campus in Olympia, please keep in mind parking is very limited. For directions, maps and information regarding parking and free shuttle service please see: http://www.leg.wa.gov/legislature/Pages/Parking.aspx

New Washington State Liquor Control Board Website

2011-01-20T11:31:00.000-08:00

The WSLCB released this Manufacturer, Importer, Wholesaler (MIW) Bulletin today:

Date: January 20, 2011
To: Industry Members
From: Brian E. Smith, Communications Director
Subject: New Washington State Liquor Control Board Website

On Friday January 21, 2011, the Washington State Liquor Control Board (WSLCB) is scheduled to launch an entirely new website. We hope and expect that the new site will better serve our customers and others seeking information from us online. While the WSLCB will maintain its existing domain on the internet (www.liq.wa.gov), some of your existing bookmarks may break. Please update all bookmarks once the new site is online.

The new site includes features requested by many of the nearly 500 visitors who took an online survey earlier in 2010.

Website Features

The new site will feature online:

Maps and directions to store locations powered by Google
One-click website language translations from English to Spanish or Korean
Search functions to pinpoint the items you need quickly
Left-hand-side-of-page buttons to help you navigate the site easily
Clean and simple layout with prominent highlights of emerging news
Many more user-friendly features

New Feature: Business Portal

One important new feature on the new site is the “Business Portal.” We created this section with you in mind. The Business Portal is a one-stop shopping for business users to access the information they need. Please visit the Business Portal for:

WSLCB’s online tax reporting and payment system
Access to tax reporting forms for in-state and out-of-state licensees
All forms and contact information for listing new products

We Want Your Feedback

If you have just a few minutes after you see the site, please give us feedback via the online survey you’ll see posted. Thanks again for your time and input.

2011 Legislative Update

2011-01-18T13:00:00.000-08:00

2011 session underway, FWWS introduces four bills.
New FWWS proposal would legalize consumer direct ship by retailers.
Farmer’s market sampling bill introduced, receives hearing.
Wine Institute “What is a Winery” proposal still a mystery.

2011 Session Underway

As of this writing, the first week of the 2011 Washington Legislative session is behind us. The FWWS Board has been very busy over the past year preparing for this hectic season. Together with our Lobbying Team of Mark Gjurasic and Terry Kohl, we have secured sponsors in both the House and Senate for a total of four bills – a very ambitious agenda. Three of these bills, our Tax Reporting Relief Act, Payment Parity Act, and Craft Wineries Act have been previously introduced. Our Direct Shipping Bill is new. No hearings have yet been scheduled on any of our bills. Fact sheets and the complete text of all these proposals are available on our website.

FWWS Introduces Direct to Consumers Shipping Bill

FWWS has introduced a new bill this session which we believe has many positive aspects for Washington wineries, consumers, and the State. While Washington wineries and out-of-state wineries presently have the right to ship wine direct to consumers in Washington, both domestic and out-of-state retailers are prohibited from doing so. In other words, any retailers presently shipping to Washington consumers are doing it illegally. We believe creating a legal venue for this practice is a good idea and will accomplish the following:

Level the playing field for Washington wineries. Presently any wine shipments by out-of-state retailers are shipped without collection of Washington State sales and excise taxes since such shipments are extra legal and outside the tax registration process. This puts your wines at a roughly ten percent competitive disadvantage even before considering the cost of adult signature requirement compliance, presently $4 per package for UPS shipments.
Adult signature requirements can be extended by regulating such shipments, accomplishing a clear and valuable public safety goal.
Tax revenue can be generated at a time of tight state budgets from a population that will gladly accept such taxes in exchange for the benefit of being able to bring what we believe is a common practice into the legal daylight.
Strategically, we believe that seeing such revenues suddenly appear from a currently underground economy, will encourage other states to join the handful that presently allow direct shipment from retailers to consumers. This will allow Washington wineries to sell to Washington retailers, or nationwide retailer intermediaries such as Vinoshipper.com, for resale to consumers in other states, and in quantities that presently make it impossible to either attract the representation of a wholesaler or justify the cost of compliance by an individual Washington winery in such an out-of-state market.

Farmers’ Market Wine Sampling Bill Introduced

A bill has been introduced in both the State House (HB 1172) and Senate (SB 5029) that provides a pilot program allowing wineries to provide tasting samples at farmers’ markets. Currently wineries may apply for a $75 license endorsement to sell wine at farmers markets meeting certain requirements. Tasting at such markets is not allowed. Under the proposal, tasting of samples up to 2 ounces would be allowed with a maximum of 4 ounces per customer, and only at markets currently approved for such wine sales. The pilot program would expire at the end of 2012 unless extended.

FWWS supports this proposal. It has already received a hearing in the house and is presently scheduled for a hearing before the Senate Labor, Commerce, and Consumer Protection Committee on January 18th. We will keep you posted on its progress.

Washington Wine Institute “What is a Winery?” Bill Still a Mystery

Last month we reported to you on the WWI’s “What is a Winery?” concept. The WWI has been discussing concerns in this regard for at least eighteen months. As we reported, last August we became aware through the trade media that the WSLCB shared some concerns being discussed by the WWI. Inquiries to the WSLCB indicated that they expected the WWI to present such a bill in the 2011 session but that the WSLCB could offer no details since they were only providing “technical assistance” to the WWI in this regard. Repeated subsequent requests to the WWI for a draft copy or even an outline of their proposal have gone unanswered.

In December, a legislative committee Chair offered to arrange a meeting between FWWS, the WWI, the WSLCB, and the federal Alcohol and Tobacco TTB in order to discuss agency concerns and the WWI concept. While the WWI refused the invitation, a meeting was subsequently arranged by the WSLCB. Attending were FWWS Board members, our lobbyist, and staff from the TTB and WSLCB. While several issues of regulatory concern were discussed, what became clear from the meeting is that the current State definition of “production” within the licensing statute is not sufficiently clear or comprehensive to cover business models currently being used, models which may be allowable under the current federal statutes, assuming wineries are actually complying with the federal rules. Beyond identifying this fairly straightforward definitional inadequacy in the statute, what was not sufficiently covered in the meeting is; first, to what extent the proposal is being driven by public policy goals arising from the lack of clarity in the licensing rules, and, second, if this is primarily being driven by insufficiency with the current licensing laws, why the WSLCB, rather than the WWI, is not pursuing this legislation as a regulatory reform proposal. We believe that broad industry input on proposals which mandatorily affect all state winery licensees is vital and that the WSLCB, as our regulator, is in the best position to coordinate such input. Thus far, the WWI has not only not solicited such broad industry input, they have been unwilling to accept it, except, presumably, from their membership.

At the present time and one week into the current legislative session, we have not received either a draft bill or an outline of the bill concept from the WWI. We are, therefore, uncertain whether the WWI intends to proceed with such a bill at this time, or why such a bill is necessary beyond a few definition tweaks in the liquor code. Obviously we are in no position to comment on what may or may not be in it. We will keep you posted.

As always we welcome and value your questions, comments, and input.

The Board of FWWS

Wine Industry News

2010-11-29T14:41:00.000-08:00

FWWS Tax Reporting Relief Act Becomes Reality – In Idaho

The State of Idaho recently adopted rules allowing wineries, at their option, to report and pay their liquor taxes annually as long as they have less than $600 in quarterly tax liability. The Idaho rules actually allow qualifying wineries to report monthly, quarterly, semi-annually, or annually, at their option. The rules save time and money for both the wineries and the state – an important virtue in these recessionary times. The Idaho law is very much like what FWWS has been proposing to the Liquor Board and in the Washington Legislature for three years. The Washington Wine Institute has thus far declined to support this legislation citing a “lack of safeguards” similar to federal annual reporting. It is not clear to us what such safeguards might be since Washington has no tax bond requirements even for the largest wineries, but we are hopeful that in future the Wine Institute will join us in supporting our proposal for this positive change. As Idaho has clearly demonstrated, this sort of reform is achievable.

Governor Suspends Agency Rulemaking

On November 17, Governor Gregoire signed Executive Order 10-06 “Suspending Non-Critical Rulemaking and Adoption.” The stated intent of Governor Gregoire’s order is to relieve the burden on small business of implementing and adopting agency rules. FWWS has contacted the Governor’s office to express thanks for her recognition of the adverse effects of such burdensome regulation, and noted that advocating for such regulatory relief is one of the founding purposes of our organization.

An immediate effect of this rule on our industry was to table rulemaking on five topics, including rules proposed by the Washington Beer and Wine Wholesaler’s Association that would have allowed distributors to charge fees for split cases (ironically a form of volume pricing). As noted in a Memo from the Governor’s office, rulemaking may continue for various reasons including implementation of laws or court orders, public safety emergencies, and “negotiated rule making or pilot rule making that involved substantial participation by interested parties.” The grocery store sampling program is proceeding through rulemaking under the latter noted exception. The alcohol energy drink and chronic alcohol impact area rulemaking processes are proceeding under the public safety exception.

What is a Winery, Northwest Style

Much has been heard lately under the subject heading of “What is a Winery?” The Washington Wine Institute (WWI) has been speaking out about this issue for well over a year. FWWS learned this past summer that the Washington State Liquor Control Board (WSLCB) has been working with the WWI since at least June on this issue and apparently shares some of the concerns of the WWI with regard to definition. Since the WSLCB’s involvement clearly makes this an industry-wide issue, we asked for a copy of the bill. We were referred back to the WWI which has repeatedly claimed that the bill is “not yet drafted.” Repeated requests to the WSLCB for an outline of their specific issues of concern that would be addressed by the expected bill have thus far gone unanswered. At this point it is unclear to us what current business models may be in violation of current State statute, and we believe it would be unproductive to speculate on that topic. We are concerned that if not carefully drafted, such a bill could theoretically infringe on business privileges and practices currently enjoyed by Washington wineries. We are presently seeking clarification of this issue via a meeting with the WWI, the WSLCB, and a key legislator. We will present further information on the specifics of this proposal and FWWS’s position when such becomes available.

Interestingly, there is a current proposal in Oregon on the subject of defining a winery. This proposal, by the Oregon Beer and Wine Wholesalers’ Association, has as one central feature a requirement that wineries “produce” at least 75% of the wine they sell. Depending on how the term “produce” is defined, this could result in a severe limitation on “negociant” wines produced under license at facilities owned by others. We believe this is a serious concern given that using the economies of scale inherent in larger facilities is a proven way for small wineries to become larger wineries. We believe negociant wine to be a simple matter of brand ownership and/or alternating premise designation. We are not aware of any Federal law that presently precludes such a practice.

As stated above, we do not wish to speculate on what may or may not be in any eventual bill put forward by the WWI. We stand ready to support any bill which makes legal currently used winery business models that are not presently allowed under State law. Since FWWS has never opposed a proposal of the WWI, and since it would be preferable to have our concerns addressed ahead of time to avoid such an opposing stance, the WWI’s lack of communication on this matter is regrettable. We will keep you posted and hope to be able to report shortly that our concerns in this regard have been satisfactorily answered.

Texas Shipping Ban Survives Another Challenge

In a very unfortunate result, the State of Texas shipping policy, which discriminates against out-of-state retailers, has won another round in court. The Second Circuit Court of Appeals held that Texas’ ban on direct shipments by retailers was constitutional despite the clear violation of the commerce clause. This is a rather stunning result in that it goes completely against the grain of the Granholm decision which found such discrimination in the case of wineries (i.e., discriminating in favor of in-state wineries and against out-of-state wineries with regard to shipping regulations) to be in violation of the commerce clause of the US Constitution. As you are probably aware, the wholesalers have responded to Granholm in the US congress by proposing HR-5034 to have congress give up its exclusive right to regulate interstate commerce with regard to wine, thereby allowing states like Texas to openly and brazenly discriminate against wineries such as yours. Incredibly, the Circuit Courts seem to be suggesting that the commerce clause does not protect wine retailers in interstate commerce the same way that the Supreme Court has ruled it protects wine producers. The Specialty Wine Retailer’s Association, an FWWS affiliate member, has made appeal of this case its highest priority. Since FWWS believes that retailers are in the best position to navigate the myriad state shipping regulations, and since sales margins to retailers are vastly higher than those to wholesalers, we feel this issue is of vital importance to Washington wineries. We will be following this issue closely. Stay tuned!

HR-5034 Becomes Zombie - Stalks Halls of Congress

HR-5034 is the current attempt by the beer and wine wholesalers to have Congress abdicate its right to regulate interstate commerce, and allow states to enact laws which once again openly discriminate against out-of-state wineries in shipping. Despite more than 100 co-sponsors in the House of Representatives, HR-5034 was apparently too blatant to survive intact. Its sponsor, Massachusetts Representative Delahunt, offered changes to the bill in September that gave lip service to concerns about discrimination, yet provided virtually no barrier to the effective overturn of the Granholm decision. So the bill is not dead but lives on like a zombie. Its future is uncertain. While Representative Pelosi’s loss of the House Speaker’s chair removed a potentially overpowering opponent hailing from California, the Country’s largest wine-producing state, Democratic Representative Delahunt, perhaps sensing the same tide that took Speaker Pelosi’s seat, chose not to seek re-election in 2010. Rest assured that the wholesalers’ lobby will not cease their dousing of congress with their large diameter money hose. This issue will require constant vigilance.

Internships / SSCC Partnership

2010-11-16T14:44:00.000-08:00

In an effort to better serve our members, Family Wineries of Washington State is in the process of developing an internship program which will serve the needs of small wineries as well as the needs of students in the industry. In the weeks to follow we will be sending a brief survey in order to determine where your needs are most heavily concentrated. Your suggestions and feedback are important to our mission, so please feel free to write independently of the survey if you have anything you would like to input.

It is our pleasure to announce our first partnership with South Seattle Community College and the Northwest Wine Academy. Although young, the program is highly respected in the industry for producing talented graduates. Interns are available to assist you in all aspects of your business including the following:

Marketing and Sales
Tasting Room Operations
Reporting Functions
Cellar Operations
Chemistry Services
Bottling / Labeling
Harvest Production

Our long-term vision for partnerships also include collaboration on:

Class guest speakers
Class projects
Field trips
Student volunteer work

Thank you for continuing to support Family Wineries of Washington State. You will be kept up-to-date on progress concerning this and future partnerships with other Washington state wine programs. We look forward to hearing from you!

Sincerely,
Jean Marie Elkins

FWWS Friends of the Family Program

JeanMarie.Elkins@familywineriesofwashington.org
http://www.familywineriesofwashington.org

I-1100 Fails. What's Next?

2010-11-05T15:13:00.000-07:00

Dear FWWS Member,

At the time of this writing, it appears likely that I-1100 will fall slightly short of the necessary votes needed for approval. We know that some of you will be relieved and and some very disappointed by this outcome. One thing we can likely all agree on is that I-1100 was not an ideal solution to all the regulatory problems faced by small Washington wineries. At the very least this issue engendered open and vigorous debate on the current and future course of the Washington wine industry.

So what's next for FWWS? The short answer is we pick up right where we left off, except that where we left off is a bit of a misnomer since we never stopped working on our legislative proposals. We have already secured a promise for a meeting with the current chair (and at this moment apparently next session's chair) of the Senate Labor, Commerce and Consumer Protection Committee together with representatives of the Liquor Control Board, the Wine Institute and our contract lobbyists, Mark Gjurasic and Terry Kohl. We hope to discuss all of the following:

Our "Payment Parity Act" that would apply the same terms to business checks and other customary forms of payment as were recently applied to EFT transactions. This would allow you to voluntarily leave wine with vendors without immediate (CoD) payment and not thereby surrender your right to collect the money due because you have broken the law.
Our "Tax Reporting Relief Act" that would allow wineries producing fewer than 5,000 gallons per year to file state production reports annually rather than monthly at their option.
Our "Craft Wineries" act that would allow wineries producing fewer than 10,000 cases annually to register, at their option, as a "Craft Winery" and be exempted from many of the restrictions (or some would say "protections") contained in the current liquor code such as delivered pricing, co-advertising restrictions, etc.
The Wine Institute's proposal to further define the term "winery." Since it has never been apparent to us why this is necessary, we will be able to get some clarification on that point, to give input on keeping any new definitions as simple as possible, and to ensure that in providing for the existence of any potential new business models, the new proposal does not eliminate any rights currently enjoyed by wineries. We are specifically concerned with any potential limitations on the presently unlimited right of wineries to make "negociant" wine at facilities owned by other wineries.

In addition to proceeding with our legislative agenda, we will in the coming weeks be proposing several new bylaw amendments for your consideration as well as electing at least one new board member.

Stay tuned!

The Board

Welcome New Industry Member Baldwin Resource Group, Inc.

2010-10-22T13:00:00.000-07:00

I am pleased to welcome our newest industry member, Baldwin Resource Group, Inc., to the FWWS. Here is some information on them:

Baldwin Resource Group is a professional service firm committed to assisting our clients in building, preserving and protecting their physical and financial assets. We serve businesses and individuals and provide resources and expertise in the Insurance, Employee Benefits, Business Consulting, Risk Management and Financial Asset Management disciplines. BRG is focused on building long-term relationships with an emphasis on finding solutions to our clients’ most pressing problems.

http://www.baldwinrgi.com

Welcome to the org!

Welcome New Member Fielding Hills Winery

2010-10-22T12:59:00.000-07:00

I am pleased to welcome our newest member, Fielding Hills Winery, to the FWWS. Here is some information on them:

Creating truly premiums reds wines is our primary goal; but also will be our desire to produce a wine that can help make any occasion a special one. By using only time honored small lot winemaking methods, combined with only the finest ingredients (grown at our affiliated vineyards in Mattawa, WA), we believe our wines truly excel. We also hope that by sharing with you many of the details of our winemaking experiences that you can become more connected to our wines. Only time and tastings will prove the results of our efforts.

http://www.fieldinghills.com

Welcome to the org!

Latest News

2010-10-18T14:18:00.000-07:00

Here is the latest news for your reading enjoyment...

Prohibition and Repeal: A short History of the Wine Industry’s Regulation in the United States
Journal of Wine Economics

"The United States wine industry has experienced tremendous growth in the past twenty-five years. The number of wineries in the United States has grown to almost 5000, located in all fifty states, and creating over a million full time jobs. Alcohol distribution laws that hinge on the Supreme Court’s reconciliation of the Twenty-first Amendment and the Commerce Clause have significantly hindered the industry’s ability to expand. Current interpretations of the 21st Amendment give states unprecedented freedom to regulate interstate commerce in alcoholic beverages. The resulting regulatory diversity presents problems both domestically and internationally."

Calling all wineries, distributors and wine retailers
Washington Wine Report

"As part of a subsequent post about Initiatives 1100 and 1105 following the current series, I will be giving the perspective of people at all three of the distribution tiers: wineries, distributors, and retailers. If you are interested in sharing your thoughts, please contact me at wawinereport@gmail.com. This will involve responding by phone or email to a specific set of questions. The responses may be anonymous or attributed, whichever you prefer.

Separately, I plan on collating and listing the names of wineries that have taken positions for or against these initiatives and listing this information on the blog for reference. If you are interested in having your winery's name listed, please contact me at the email address above and state your position on each of these initiatives (no additional explanation needed)."

Yes on I-1100, no on I-1105
The Herald

"We recommend a yes vote on Initiative 1100, which would close all state liquor stores, including those run under contract, and require the state to sell its huge liquor distribution center in Seattle. It also would clear away many archaic rules that were established after the repeal of Prohibition, rules that haven’t made sense for years. Among other things, they ban direct sales from manufacturers to retailers, the extension of credit for liquor sales to retailers, and discounts on bulk purchases.

We encourage a no vote on Initiative 1105, which also would get the state out of the liquor business, but hold onto unnecessary requirements that favor distributors and keep prices artificially high. Retailers would have to buy liquor through a middleman."

Liquor privatization draws distributor ire
The Herald

"The battle over Washington state’s two liquor privatization ballot measures has drawn millions of dollars from out of state, mostly from beer wholesalers opposed to efforts to shake up the current alcohol distribution system."

Get state out of liquor sales: Yes on I-1100, no on I-1105
The News Tribune

"Of the two liquor initiatives on November’s ballot, only one ends all state intervention in the liquor market plus has the added advantage of heading off an unholy fight over new liquor taxes.

Initiative 1100 is that measure. Voters who want to get the state out of the business of booze should approve it while voting no on its competing measure, Initiative 1105."

Wine Industry News

2010-09-27T12:54:00.000-07:00

News has been fast and furious lately, here are some interesting developments in our industry:

New Version of H.R. 5034 Being Circulated
WineAmerica, The National Association of American Wineries

"A new version of H.R. 5034 is being circulated by its chief sponsor, retiring Massachusetts Congressman, Bill Delahunt (D-MA). The bottom line — it’s still an unnecessary piece of legislation that would harm wineries."

Va. wineries back liquor privatization proposal
The Washington Post

"The Virginia Wineries Association on Wednesday endorsed Gov. Bob McDonnell's (R) proposal to privatize the state's liquor industry.

The group is the latest industry, retail and transportation group to back McDonnell's bid to sell the state's wholesale and retail spirits operation. In a statement, the wineries say that privatization would be good for Virginia wine because studies show that more wine is sold in stores where liquor is also sold."

I-1100 - AWB Endorses
I-1105 - AWB Opposes
Association of Washington Business

"The Association of Washington Business, one of the state’s leading business groups, endorsed Initiative 1100 today, saying that the initiative will reset “the priorities of state government” and “refocus state government on essential services.”

The 250-person AWB Board endorsed I-1100 with 82 percent of the vote (60 percent is needed to pass). Rather than approval, Initiative 1105, a competing initiative on the Nov. 2 ballot, received 82 percent opposition from the AWB board."

Agonizing Over and Analyzing Washington Ballot Initiatives I-1100 & I-1105
Wine Peeps

"After following the money, studying what the initiatives do and don’t do, and since I am a big proponent of dismantling the archaic three-tiered system that exists primarily for the benefit of distributors and for getting the state monopoly out of the wine retail business, I had concluded that I’m for I-1100 and against I-1105."

Initiative 1100 best route for Washington state to get out of retail liquor business
The Seattle Times

"The Seattle Times Editorial Board supports Initiative 1100, which would replace the state liquor monopoly with a competitive market, and it opposes Initiative 1105, which would replace the state liquor stores with a private cartel."

Welcome New Member Hoover & Roofus Winery

2010-09-21T16:27:00.000-07:00

I am pleased to welcome our newest member, Hoover & Roofus Winery, to the FWWS. Here is some information on them:

Hoover & Roofus Winery is a boutique winery in Zillah producing less than 1000 cases annually of Riesling, Nebbiolo, and Pinot Gris.

Welcome to the org!

E-mail, Facebook, and Twitter Updates

2010-08-20T16:08:00.000-07:00

Attention wine geeks!

Our org would love to stay in touch with you. But we also value your privacy. So we have created a variety of ways you can get updates from our org:

Family Wineries of Washington State News E-mail

http://eepurl.com/MPff

This e-mail service is opt-in only. That means we don’t sign you up, you need to sign-up yourself. That way we can guarantee you don’t end up receiving these e-mails when you don’t want to. In addition, this list allows safe unsubscribing at any time after joining.

Facebook

http://www.facebook.com/pages/Family-Wineries-of-Washington-State/140633052631865

Visit our Facebook page and “like” us! Our blog also feeds our Facebook page so you can read the latest info about our org.

Twitter

http://twitter.com/FWWSorg

Follow us on Twitter and receive all the latest news on your mobile device.

We hope you sign-up and enjoy the updates!

2010 TTB Compliance Seminar for Bonded Wine Premises Handout Packet

2010-08-20T15:22:00.000-07:00

The 2010 TTB Compliance Seminar for Bonded Wine Premises handout packet is now available.

Of special interest are Common Compliance Concerns detailed on pages 168-169. Here are some samples:

Inadequate bond coverage
Unauthorized distilled spirits or brewing operations take place on wine premises
Amount removed in each tax class is not totaled on taxable removal record
Insufficient evidence of removals for tasting, testing, and breakage
Taxes paid do not match the taxable removals shown on Form 5120.17
COLAs don't match the labels
Records relating to receipt and use of spirits are insufficient
Bottled wine shortages were not taxpaid

Take the time to review the packet and get up-to-date.

Yes to 1100!

2010-08-20T13:55:00.000-07:00

Check out the new pages for Yes to 1100

Facebook

Twitter

Please visit the sites and take advantage of the plethora of useful information WRT to I-1100.

Vote YES on 1100!

I-1100 Just Makes Sense

2010-08-19T15:59:00.000-07:00

Washington state should not be in the liquor business. Rather than promoting alcohol sales the state should make enforcement its primary mission. The Liquor Control Board has been blinded by the money and it needs to get back to basics and put its full energy behind enforcement. Controlling teenage drinking will not be a problem if the state just does its job.

I-1100 is the responsible way to take the state out of the liquor business. It leaves the taxes in place but it ends the monopolistic practice of the state charging an obscene 51.9% mark-up on a bottle of liquor on top of the highest liquor tax in the nation.

I-1100 is about convenience. Especially for people who are only occasional purchasers of alcohol. It is incredibly inconvenient to, after going to the grocery store to shop for a special event, make an extra stop at some out-of-the-way strip mall to shop at a state liquor store. The limited hours of operation are a real problem in our active world.

I-1100 reduces the head count of state workers while creating hundreds of new jobs in the private sector.

Remember to vote YES on 1100 and NO on 1105!

WA State Winery Data 2009

2010-08-17T13:18:00.000-07:00

This is a follow-up to our popular previous blog post on 2008 WA winery data. Our previous blog post detailed and charted interesting winery data from 2008. Well, here's the data from 2009! Our analysis of the data was identical to the 2008 analysis. Here we go...

Distribution of Wineries by Gallons Sold

What we did was break down production into 6 different categories. Each category is basically a range of annual gallons produced. We then figured out how many wineries fall into each category.

Distribution of Wineries by "Craft" Designation

We have been using the term "craft winery" to identify wineries that produce less than 25,000 gallons per year. This is also a requirement to be eligible as a full regular member of the FWWS. Here's how wineries in WA state break down by whether or not they are a "craft" winery.

Actual Gallons Sold by "Craft" Winery Threshold

OK, so now we know how many wineries in WA state would be considered a "craft" winery. The following data and graph show you how many actual gallons of wine are produced annually by craft wineries versus non-craft wineries.

Summary

So there you have it: 94.04% of the wineries in WA state would be considered a "craft" winery, a little bit more than in 2008. A general trend continues: the other 6% of the wineries (non-craft wineries) produce about 93% of the actual gallons per year. And once again, 1 winery tops the scale at producing 13 million gals. annually. The next biggest winery only produces approximately 1.1 millions gals. annually. Finally, the total number of wineries grew from 547 to 671.

Response to WA Wine Institute’s Anti-I-1100 Misstatements

2010-08-16T14:05:00.000-07:00

Recently, the WA Wine Institute’s views about Initiative 1100 were circulated to our state’s wineries and vineyards and suggested that the proposed new law would be detrimental to the Washington wine industry.

Nothing could be further from the truth.

Passage of I-1100 will be the greatest legal development for the Washington wine industry since the repeal of Prohibition. The WWI’s arguments are based on keeping control of the industry in the hands of the established producers and large distributors – not in the hands of the rest of us in the wine business. We at Family Wineries of Washington State find the WWI’s stance counter-productive to free and fair competition – and we lose in the process. The WWI wants to keep existing so called “protections” against credit and discounts that limit the growth of the Washington wine industry and punish wine consumers (our customers) with lower quality, higher prices and poorer selection. Support the public’s right to choose what is best for them over narrow special interests. Vote for wine freedom by voting for I-1100.

And what about Initiative 1105, which is sponsored by two huge out of state distributors?

The WWI is silent about 1105 even though it would send the Washington wine industry back to the dark ages. I- 1105 expands big distributor monopoly power and repeals many of the gains achieved over the past fifty years. Don’t let big distributors and a few wineries that are doing well under the current system foil the best chance we have to free the grapes (and breweries and distilleries) in Washington State from unjust and unfair laws.

Remember, YES on 1100; NO on 1105! Support economic growth and wine consumers instead of special interests.

I-1100 Brings Common Sense to Liquor Laws

2010-08-04T16:43:00.000-07:00

An excellent editorial from "Puget Sound Business Journal" with regards to 1100.

http://bit.ly/c2PgCG

Remember to vote YES on 1100 and NO on 1105!

Sad News - John Powers from Chuckanut Ridge Wine Company Passed Away

2010-08-04T16:30:00.000-07:00

We are sad to report a death in the wine industry, John Powers from Chuckanut Ridge Wine Company has passed away.

You can find details about the event celebrating John's life at http://bit.ly/9CBB62

Ray's 2010 Summer Tasting Photos

2010-08-03T14:38:00.000-07:00

The photos from the Ray's Summer tasting are now available on our site at http://www.familywineriesofwashington.com/images/Rays2010/

We have some great pics of the winemakers, the venue, and some wonderful guest portraits and candids. Visit the photos and see if you can find yourself! Feel free to download the images and to share with your friends.

To all the guests who visited, thanks very much for supporting our org, we hope you had a great time, and we would love to see you at our next event.

HR 5034 and the Consequences

2010-08-02T16:15:00.000-07:00

No Wine Shall Be Served Before Its Time - At Least Not Without Wholesalers Taking a Cut

An excellent analysis of the economic issues.

http://bit.ly/bg1PhV

Sadly, HR 5034 is backed by the same huge beer distributors who oppose Initiative 1100 in Washington State and sponsor Initiative 1105. Remember to vote YES on 1100 and NO on 1105!

Welcome New Member Convergence Zone Cellars

2010-08-02T15:13:00.000-07:00

I am pleased to welcome our newest member, Convergence Zone Cellars, to the FWWS. Here is some information on them:

CONVERGENCE ZONE
Where two prevailing flows meet & interact, resulting in distinctive weather conditions.

CONVERGENCE ZONE CELLARS
A new Washington State winery where red grape varietals meet and interact, resulting in distinctive, handcrafted wines.

http://www.czcellars.com

Welcome to the org!

Ray's Part Troix

2010-07-29T18:52:00.001-07:00

Northwest Totem Cellars pouring their Qo-nē.

John Bell from Willis Hall Winery drinks wine double-fisted.

Queen Anne Winery just released 07 Sangiovese.

Stomani Cellars and their awesome Chard.

SYZYGY displaying their 2007 Syrah which was a Wine Spectator 93!

Paul Beveridge and his better half Lysle serving 2 new wines from their new vineyard, a white blend and a port. Oh yeah, he's the prez of FWWS!

Posted using BlogPress from the traveling FWWS iPhone.

Location:Seaview Ave NW,Seattle,United States

Ray's Continued

2010-07-29T18:20:00.001-07:00

Tim Narby pouring his excellent Una Notte red.

Masquerade Wine Company and their superlative Effervescent Elephant!

Medicine Creek Winery and their award winning Stage Coach Bordeaux blend.

Dana Madsen from Madsen Family Cellars proudly displaying his Cab Franc and Cab Sauv. Delicious!

Matt from ANIMALE exhibiting his extraordinary 2008 Cab Franc.

Lost River Winery pouring excellent Pinot Gris.

Posted using BlogPress from the traveling FWWS iPhone.

Location:Seaview Ave NW,Seattle,United States

FWWS at Ray's Boathouse!

2010-07-29T18:04:00.001-07:00

The FWWS summer tasting event at Ray's is underway! The sky is blue with nary a cloud. The location and view are superb and a wonderful ocean breeze is keeping our guests cool. And of course the wine is excellent and matched by outstanding food.

Let's take a tour of the facility and the FWWS wineries that are pouring this evening...

Bob Delf from Northwest Cellars pouring his super wine.

Edmonds Winery out of Woodinville pouring a Sauvignon and a red.

Jim from Lowden Hills Winery showing off his new super Tuscan.

Paradisos del Sol and their superlative rosé.

Posted using BlogPress from the traveling FWWS iPhone.

Location:Seaview Ave NW,Seattle,United States

FWWS on Facebook and Now Blogging Mobile!

2010-07-24T00:39:00.000-07:00

Once again your web-ninja Alex Sloley is deploying cool new technology for FWWS!

We already have these awesome publishing features:

Blog posting capability

Blog RSS and feed on home page

Simul-post on Twitter

Simul-email of blog posts

Now we also have:

A Facebook page at http://www.facebook.com/pages/Family-Wineries-of-Washington-State/140633052631865 where all blog posts are simul-posted

The ability to multimedia blog post via iPhone

In fact, this post was created on the mobile FWWS iPhone!

Enjoy the new features and go to our new Facebook page today...

Posted using BlogPress from the traveling FWWS iPhone.

Wineries Rate Their Distributors

2010-07-23T20:12:00.000-07:00

Check out this article on Wines & Vines about a new website that allows vintners to vent about no-pay, slow-pay.

http://bit.ly/bY5YMM

Welcome New Industry Member Vintners Global Resource, LLC

2010-07-23T19:09:00.000-07:00

I am pleased to welcome our newest industry member, Vintners Global Resource, LLC, to the FWWS. Here is some information on them:

Vintners Global Resource, LLC was founded with the vision of becoming the preferred supplier of imported wine bottles and packaging to the Pacific Northwest Wine Industry. This singular commitment to the wine industry keeps our energies solely focused on your success.

We are a family owned and operated company with offices in Tacoma, Yakima and Grandview, Washington. Our decisions are made locally, promptly and by people who care about your success. Our local industry knowledge and world-class service ensure that your orders will arrive as expected.

Our founders and company team members have many years of experience in the U.S. wine and perishable food industries. We understand your concerns and will meet your requirements with integrity, quality products, fair value and high service levels that you can count on.

Our sourcing, quality control, supply-chain management, inventory management and high standards for customer service levels have been market proven with the many years of success of our affiliated company, SGS Hardware.

We supply and deliver to you the right product at the right time so you can focus on your winery business. At Vintners Global Resource, we are fanatical about reliability and obsessive about high-quality customer service.

Thank you for the opportunity to serve you.

http://www.vintnersglobal.com

Welcome to the org!

Family Wineries Respond to Mega-Distributor Arguments about Initiative 1100

2010-07-23T16:25:00.000-07:00

Giant beer distributors have been circulating ugly and false rumors about the impact of Initiative 1100 on small wineries. The following red rebuttals respond to the mega-distributor arguments:

When liquor goes private via 1100, wineries that are small will get squished like bugs.

No, we will nimbly step out of the way as we always have. Small wineries will rarely be successful competing directly with the big boys. With 1100, we will be free to compete in many new ways and win the way we always have, by being local and providing better, more interesting products, service and convenience.

Distributors will be beholden to large spirit companies that sell wine and spirits. Say Gallo, Diageo and constellation.

The Washington State Beer and Wine Wholesalers Association is dominated by huge out of state distributors. Small wineries do not operate on the same level as larger spirit companies or giant distributors. Small to medium size distributors and wineries (and breweries and distilleries) will gain many competitive advantages due to the freedom and increased market offered by 1100.

The big local players will have money to buy the wine lists and cut exclusive deals.

Not if it results in any real damage (exclusion). These sorts of hard-core business practices are already illegal under other state and federal laws (e.g. the antitrust laws). And who cares if national mega-restaurant chains make exclusive deals with commodity wine producers? That’s not where small wineries sell their products anyhow. Small restaurants and retailers will benefit from the freedom to compete provided by 1100, which means there will be more places to sell Washington wine.

The shelf space in stores for wine will decrease as liquor will take 25 percent of the space.

Only at stores with poor selection that are willing to lose wine consumers as customers. Under 1100, demand for wine will increase because wine will be less expensive due to removal of unnecessary economic regulation (law of supply and demand) more than making up for any potential loss due to spirits becoming more convenient.

The selection of wine will decline as grocery stores buy from a central warehouse in full cases and the pack out means less selection.

Maybe for some commodity wines, but no way for small wineries. When Alberta privatized it’s provincial liquor stores, selection quadrupled throughout the province. Free market forces maximize selection. The existing regulations greatly limit selection.

Fly down to southern California and take a look.

Southern California is a relative fine wine desert for a number of reasons, none of which have to do with California’s liquor laws. We prefer to look at northern California where the same free market laws apply and wine flourishes along with great small restaurants and small retail shops. The customer base for small Washington wineries is much more sophisticated than the customer base in southern California and will continue to demand more and better wines than do Hollywood starlets. The biggest reason we support 1100 is that it will be great for wine consumers (price and selection will improve) and small wineries always win when they put their customers ahead of narrow special interests.

Deregulation squeezes small players. That’s why in London all the pubs have the same beer selection, they are paid by brewers.

You go to the wrong pubs. London is full of great pubs with great beer selections, just like France. Spain, Italy, and other free nations are full of great wineries, wine shops and restaurants. Plus, tied houses will remain illegal under federal law. 1100 is not going to get rid of vapid sports bars where brainwashed soccer louts swill the most heavily advertised national yellow beers. But 1100 will make it easier for good pubs and restaurants in Washington state to sell more wine and stay in business. Deregulation frees small players to compete with all their skills and inherent advantages of size while enlarging the overall wine market for everyone. Let’s give Washington state the perfect legal climate for wine!

Protect your family winery and check this out.

Embrace freedom and promote the common good over special interests by voting yes on 1100 (and no on 1105).

Your friend Dan from a mega-distributor

Your friends of small wineries and the public at Family Wineries of Washington State

Benefit shows set up for injured Bellingham business owner

2010-07-23T16:14:00.000-07:00

Dear FWWS Member,

The following article appeared in a Bellingham Herald article on July 20th and concerns a serious injury suffered by one of our fellow wine makers. Please forward this posting to any in the industry you may know who would be interested in helping John and his family.

Benefit shows set up for injured Bellingham business owner

Sincerely,

The FWWS Board

Welcome New Member Otis Kenyon Winery

2010-06-22T13:33:00.001-07:00

I am pleased to welcome our newest member, Otis Kenyon Winery, to the FWWS. Here is some information on them:

Otis Kenyon Wine is a family owned and managed winery with deep historical ties to the Walla Walla Valley. We handcraft limited quantities of elegantly structured and affordable Bordeaux and Rhone varietal wines from our estate and other proven Walla Walla Valley vineyards.

In tribute to four generations of Otis Kenyons, the family has returned to the Walla Walla Valley with a passion for time-honored winemaking, an unyielding commitment to excellence and a dedication to sustainable and bio-diverse viticultural practices.

http://www.otiskenyonwine.com

Welcome to the org!

Welcome New Member Masquerade Winery

2010-06-22T13:31:00.001-07:00

I am pleased to welcome our newest member, Masquerade Winery, to the FWWS. Here is some information on them:

Handcrafting fine Red Mountain Estate and vineyard-designate wines in the heart of Washington Wine Country. Our mission is to make wines that bring enjoyment and celebration to life.

Laissez les bons vins verser!

http://www.masqueradewines.com

Welcome to the org!

Feedback to Initiative 1100

2010-06-18T16:40:00.000-07:00

Family Wineries of Washington State has received lots of feedback, both positive and negative, from member and non-member wineries about Initiative 1100. Listening to the views of member and non-member wineries is very important to FWWS. We understand that some wineries in Washington State (including a significant minority of FWWS members) believe that there are benefits to wineries under the current legal system -- namely the prohibition on volume discounts and the prohibition on offering credit -- that are worth preserving. We have studied these issues carefully for many years and discussed them with legal and economic experts. Our research and these experts have convinced us that these economic restrictions cause more harm than good.

While some individual wineries may feel they benefit from the ban on discounts and credit, there is no doubt that these restrictions limit innovation and the growth of the Washington wine industry as a whole. The restrictions reduce available capital, favor large distributors, and are unfair to retailers, winegrowers and, most importantly, wine consumers. No other industry in Washington State operates under such a paternalistic system. While I-1100 may not perfectly represent all the best interests of the wine industry, the Board believes that the opportunity presented by this convergence of political, economic, and electoral forces will not occur again and must, when weighing the freedoms and opportunities gained against the special treatments lost, be embraced.

Initiative 1100 presents an extraordinary opportunity for our industry. FWWS, while advocating for a comprehensive separation of economic regulation from public safety regulation under the liquor code, has for three years proposed bills in Olympia which offered either significant compromises on major issues such as credit (example: our Payment Parity bill) or voluntary exemption of wineries from restrictions on trade (example: our Craft Wineries bill). Each and every proposal has been rebuffed, without any offer of compromise, by both the Washington Beer and Wine Wholesalers Association, and the Washington Wine Institute. In light of this sustained and uncompromising opposition, the opportunity posed by Initiative 1100 could not be ignored by FWWS. The drafters of Initiative 1100 chose to achieve the privatization of liquor sales in Washington - a proposal that polls show is extremely popular with voters - by comprehensively removing the state from both the sale of alcohol and the economic regulation of the sale of alcohol on behalf of special interests. For those who believe that the "protections" in the existing law are in their own self interest, the question presented by initiative 1100 is this: Are these features of the current law, on balance, worth preserving if doing so will jeopardize the best chance we may see in our lifetimes for ending the invasive and stifling day to day control of our private economic affairs by the Liquor Board? While I-1100 may not perfectly represent all the perceived interests of every winery, the Board of FWWS believes that the opportunity presented by the convergence of political, economic, and electoral forces in 1100 must be embraced. The freedoms to be gained outweigh the special treatment to be lost.

We believe it is time for the Washington wine industry to loosen the shackles of the past and embrace a new era of fair competition and growth. We firmly believe that small wineries and small retailers have the most to gain from the flexibility that Initiative 1100 will provide. Small wineries and retailers have never been able to fight toe to toe with the big companies and the current law unfairly favors large distributors. Initiative 1100 will provide small wineries and retailers with more flexibility to find the niches of profitability the big companies leave behind and that small wineries and retailers have long exploited by being more nimble and providing better quality, selection and location than the makers and sellers of commodity wines. A free market is the only truly level playing field.

For too long, every time a winery thinks of a new way to sell Washington wine, the winery has had to go to the legislature for an exception from the existing law. We respect that others may have different opinions but we think that passage of Initiative 1100 will be the best legal development since the California Wine Act was passed by the legislature in 1968. The California Wine Act created the modern Washington wine industry by allowing the sale of California wine in Washington State stores and restaurants. The passage of Initiative 1100 represents a similar watershed opportunity for Washington State wineries (and breweries and distilleries). We hope all of you will come to share our view that the passage of Initiative 1100 is a huge opportunity to take all of our wineries to the next level.

Again, we thank those of you who have taken the time to express your views.

How Initiative 1100 Helps Wineries

2010-06-18T14:11:00.000-07:00

1)Initiative 1100 is unique among the current proposals for liquor store privatization in that it comprehensively removes the state from not only the business of selling alcohol, but of regulating the economic aspects of alcohol trade as well. As such it is arguably the most fundamentally important and positive change in Washington state liquor law since the repeal of Prohibition. 1100 will get state bureaucrats out of winery front offices and re-focus the Liquor Board's limited resources on public safety and tax collection.

2) "Money's Worth Restrictions." Current law prevents a winery from giving any money or thing of monetary value to its customers, including credit (a loan of money), joint advertising, personal gifts and many ordinary customer service functions. 1100 removes these restrictions.

Credit. 1100 would end the current preferential treatment for wholesalers (allowed to ask wineries for credit terms) and allow wineries to set their own credit policies for all their licensed customers. Wineries will be able to, at their discretion, use their valuable inventories as readymade credit facilities which are bank free, application free, and cost free to the winery. The availability of additional credit will expand economic activity in the Washington wine business exactly the way it does in every other business. Even wineries who choose to extend only short-term credit will be able avoid the current hassle of standing around waiting for a check from a trusted client.

Advertising. Under 1100 wineries will no longer be prevented from engaging in targeted win-win co-promotions with their retail customers to showcase their wines. No longer will wineries have to go to the legislature to ask for permission to take advantage of every new idea or development in advertising and promotion that comes along.

Gifts. Under 1100 wineries will no longer be prevented from exploiting the strength of their personal relationships with clients. It will no longer be illegal for you to give someone who sells your wine a book, a dinner, or a special bottle of wine. Excessive gifts will still be subject to the commercial trade laws against bribery.

Customer service. Under 1100 you will be allowed to direct customers to specific stores, perhaps for a special sale event or to find sold out wines. Likewise such stores could advertise availability of long sold out wines on your website and unclutter their shelves. These are just a few of countless examples of ordinary and customary business practices prohibited under the current law that would be allowed under 1100.

3) 1100 will eliminate the extremely limited exceptions to tied house ownership rules passed into law in 2009, exceptions that require separate companies and stock ownership as the only acceptable forms of investment.

4) Opponents of 1100 argue that it will increase pressure for wine giveaways such as sales incentives, underwriting of advertising, promotional material giveaways etc. Asking for those items is not fundamentally different from the bargaining that already goes on. Whether a retailer asks for a lower bottle price or the cost of some advertisement, it is the same to the winery.

5) Opponents of 1100 argue that it will lead to uncompetitive strong-arm practices such as coercion, threats of product withdrawal, exclusive marketing etc. The current state and national legal system already contains safeguards under the antitrust, fair trade, and consumer protection laws that make illegal the egregious economic activities that opponents claim will be allowed.

6) Passage of 1100 would give Washington the best wine laws in the country and thereby make available a competitive advantage to Washington wineries not available to other states until they revise their own laws. California’s laws have many of the benefits of 1100 already and small wineries are doing fine there.

7) Without hindering public safety, 1100 would make it easier for wineries by themselves and with other members of the industry to market their wine. This will increase wine sales.

8) The independent state auditor’s report concludes that 1100 will raise revenue for the state, putting less pressure on the legislature to raise taxes on wine for revenue.

Passage of 1100 will allow Washington wineries to unleash their full competitive strength and innovative creativity. FWWS truly believes that 1100 will greatly increase the long term potential for success in our industry. Embrace the future and fair competition by supporting I-1100!

How Initiative 1100 Helps Consumers

2010-06-18T14:08:00.000-07:00

• The State of Washington should not be in the liquor sales business – it’s the only consumer product the state sells. Passage of I-1100 will provide wineries with a free and fair market for wine in Washington State for the first time in history.

• I-1000 would allow consumers to make decisions regarding the spirits, beer and wine they buy instead of state bureaucrats. It would repeal blue laws which remain on the books only as a throwback to a century ago when prohibition was the order of the day: we have gone way beyond that as a population.

• We would have better wines at lower prices – with private businesses able to offer bargains for larger orders. There are only 18 states remaining that have liquor controlled by their states – 32 have privatized sales of liquor.

• Currently there is a three- tiered system of liquor in Washington; the people who make the wine must be separated from the customer at the retail level by an additional middle man who is the distributor. These large distributors have built a legal system based on their own economic self interest rather than the interests of consumers. This initiative would take out that mandatory middle man and remove the complex restrictions on the way wineries sell wine that are contained in the current special interest driven liquor code, allowing the industry to move forward under a more open and fair system.

• I-1100 does not reduce state liquor taxes; the state will not lose money under I-1100, in fact it will reduce expenditures by the state at a time when the state budget is strapped.

• I-1100 does not change the public safety provisions of the liquor code at all. The state will still control all the public safety aspects of liquor, something that all of us agree is of utmost importance.

• Wineries are restricted in hundreds of ways that interfere with the marketing of wine – from limitations on advertising and promotion of wine; to bans on volume discounts and extension of credit to their wholesale customers (distributors are exempted from this ban). These restrictions are so broad that they prevent things as simple as re-filling recycled containers and printing wine lists for restaurants. The current regulations prohibit many business practices that are perfectly legal for other products and have nothing to do with public safety.

• For years family wineries have been working with the state legislature and the Washington Liquor Control Board to change these laws. To date the progress has been frustrating and time-consuming with little real change; we are still living with Prohibition-era mentality where protectionism rules and the free market do not apply. People may tell you that Initiative 1100 will hurt the protections built into the law for smaller wineries and breweries, but nothing could be further from the truth. Our small wineries will flourish when they can finally put their creativity, marketing and consumer relationships to work directly with the people who are doing the buying.

Response to the WWI on Initiative 1100

2010-06-18T13:41:00.000-07:00

First and foremost, Initiative 1100 will repeal outdated laws that don’t pertain to any other industry. Here in Washington, forestry, aeronautics, software, and even other agricultural products thrive without such “protections” from competition.

CASH ON DELIVERY

Being able to sell wine on credit is a good thing. There is a reason why every other consumer good in this state is sold on the credit principle. A reputable retailer or restaurant isn’t going to default on its credit otherwise it will lose out on all of the other business credit that it uses. A questionable retailer or restaurant doesn’t have the bargaining power to not pay on delivery. Having credit as an option gives more opportunity for a wine seller to increase their output as there will be more capital available for retailers to buy wine. The availability of credit also allows for more efficient billing and delivery, i.e. no waiting for a check unless you want to. Furthermore, allowing wineries to extend credit to customers other than wholesalers will allow those wineries to tap the equity in their inventories as a credit facility without having to go through a bank.

“PAY TO PLAY” AT RETAIL

Being able to make volume discounts is a good thing. Many companies operate on this principle because it increases their volume of sales as well as cutting other marginal costs like transportation. Wineries often give a case discount to their wine club customers to encourage larger sales. They should be able to do the same with retailers and sell more wine to them. This is based on the law of supply and demand.

Retailers can’t run an advertisement and send a winery a bill for the cost under the initiative. What Initiative 1100 does is give producers more of an ability to advertise if they want to.

Printing menus is just a cost of doing business that already exists. If the restaurant pays the cost, they increase the price of the wines on their list to compensate. If the winery pays the cost, it increases the cost of its wine to compensate, and in turn the restaurant increases the cost of its services to compensate. In the end it comes out the same. A winery should be allowed to help retailers with menus if they want to.

Providing branded promotional items is currently legal in all other industries and how often does it happen? The wineries just fought for and received the right to provide such items to their wholesale customers. Retailers don’t have the power to make ridiculous demands on wine makers anymore than they do in any other industry. A winery should be allowed to provide a promotional item to a retailer if they want to.

The bottom line is that removing these restrictions will only help to give the Washington wine industry more options and opportunities to make money, get our wine out to more people, increase the demand for wine, and innovate. How much benefit do you derive from these so called “protections” and how many great ideas do you have to give up on every year because you are not allowed to give “anything of monetary value” to your customers?

The examples that the WWI provides are blown out of proportion to create an atmosphere of unreasonable fear. 1100 offers us the best opportunity to fix the wine laws in Washington State and take control of our own business destiny. We should embrace the future and support I-1100!

Regarding Members-Only Wine Event at Ray's Boathouse July 29th - Important Changes

2010-06-14T17:43:00.001-07:00

Dear FWWS member,

Following our announcement of the Ray's event and blog posting, we were contacted by Captain Jennifer Skoda of the Washington State Liquor Control Board in regard to the $50 table fee we set for the event. She has indicated that this fee is an illegal extension of money from distributors (you) to a retailer (FWWS, who will be selling your wines at the wine store). Rather than trying to create a complicated work-around we have decided to concentrate our efforts on passage of initiative 1100 which would eliminate these silly "money's worth" restrictions from the statutes.

The Good News for you is that registration for the event will now be free to all member wineries. At the present time, we still have a few spaces available but we suggest you register immediately as the fee elimination should make entry even more attractive. As part of the reason for the table fee was for place-holding, please do not register for the event and reserve a space if you are not committed to being there.

One final note, many of you had agreed to provide a volunteer in lieu of your registration fee. We still need the help so please let us know if elimination of the fee will change your willingness to bring help. We will be contacting you soon with details on ticket sales so we can start advertising the event.

Thank you.

The Board

Initiative 1100 Update

2010-06-14T09:22:00.000-07:00

Dear FWWS Member,

Family Wineries of Washington State supports Initiative 1100 and urges you and your winery to do so as well. We are trying to collect as many signatures for the initiative as possible by the July 2nd deadline. Many wineries have no doubt run into questions from their patrons regarding this initiative and we have produced several documents that help to answer these questions.

This one lets consumers know how the initiative will benefit them and the small wineries they love.

This one highlights the benefits for you and your winery.

This one rebuts points raised in the email from the Washington Wine Institute that many of you have received.

Many wineries have already decided to have petitions at their tasting room but we still need more wineries on board. If you have access to a printer that can print 11"x17" then feel free to print the petition directly here. Please note: smaller formats are not acceptable to the Secretary of State, also it must be printed on both sides. You can mail it to us at 600 Stewart St Suite 1300, Seattle, WA 98101 . If you need us to send you petition forms, please let us know as soon as possible how many signatures you estimate your winery could gather in the coming weeks and we will send you the appropriate number of official Initiative 1100 petitions.

We urge you to do everything you can to support Initiative 1100.

The Board of Family Wineries of Washington State

Welcome New Member Knight Hill Winery

2010-06-09T22:09:00.000-07:00

I am pleased to welcome our newest member, Knight Hill Winery, to the FWWS. Here is some information on them:

In 2010 we will release a varietal Mourvedre, a varietal Syrah, a Bordeaux style Red Blend and the second edition of Roundtable Red. We will also complement our Dry Riesling and Chardonnay with a 2009 Sauvignon Blanc.

Our picnic area and patio will be ready for your al fresco folicking. The view remains the same: Fabulous!!

We are walking distance to a vineyard cottage rental and also to a first class hilltop B & B.

http://www.knighthillwinery.com

Welcome to the org!

Initiative 1100

2010-05-27T14:56:00.000-07:00

Dear FWWS Member,

Family Wineries of Washington State urges you and your winery to support Initiative 1100. With Costco now backing Initiative 1100, we have a real chance to free the grapes (and beer and spirits) in Washington state from unnecessary and counter-productive economic regulation. Passage of Initiative 1100 would require the Liquor Board to focus on public safety and education and get the Liquor Board out of economic activity that should be handled by private enterprise in a free democracy. Polls show that Washington voters overwhelmingly support Initiative 1100. We know some wineries think the laws left over from the repeal of Prohibition provide them with some valuable protections against competition. But the benefits to all (including grape growers, wineries, distributors, retailers and consumers) of implementing a free market in wine (and beer and spirits) in Washington state greatly outweigh the minor benefits of these antiquated “protections.” FWWS has pledged to help Costco and the Initiative drafters, Modernize Washington, gather signatures on the Initiative 1100 petitions. The rest of this message describes how you can help our effort to give Washington The Perfect Legal and Economic Climate for Wine!

The first step to passing Initiative 1100 is gathering at least 250,000 signatures on official Initiative Petition forms by July 6. Costco will gather signatures at its stores, but the wine industry needs to do its part as well. We ask that you accept signatures at your winery tasting room and anywhere else you are likely to meet Washington state registered voters. If you have access to a printer that can print 11"x17" then feel free to print the petition directly from the link below. If you need us to send you petition forms, please let us know as soon as possible how many signatures you estimate your winery could gather in the next month and we will send you the appropriate number of official Initiative 1100 petitions.

FWWS is also seeking monetary contributions for further funding of our Initiative effort. Please let us know by return e-mail if you or your customers are interested in providing financial support to FWWS’s efforts to pass Initiative 1100.

We urge you to do everything you can to support Initiative 1100.

The Board of Family Wineries of Washington State

I-1100 Petition

Tips Regarding Signature Gathering

FWWS 2010 Summer Tasting at Ray's Boathouse Update

2010-05-24T15:43:00.000-07:00

Dear FWWS members,

We recently announced the plans for our 2010 FWWS Summer Tasting Event at Ray's Boathouse on beautiful Shilshole Bay in Seattle. This pouring opportunity is open to FWWS members only.

We encourage you to sign up ASAP because the tables are going fast and you don't want to miss this opportunity!

The event will be from 5:30 to 8:30 on Thursday, July 29th. Attendance will be limited to 150 guests. Ray's catering will be providing appetizers to accompany our wines. The entry fee will be $45, which should be an attractive price point. We plan to be pouring wine in our brand new FWWS Riedel tasting glasses which should show your wine at its best. If you have not been there, this is a beautiful venue on one of the statistically best weather days of the year.

Details:

Registration will be limited to 24 wineries on a first-come first-served basis. Pouring wine will be donated by the winery. There will be a wine store for wine sales for which you will be paid 70% of your suggested selling price.

One final item, FWWS has purchased event insurance to cover members acting on behalf of the organization. Since pouring will be by members-only this means that no special proof of event insurance will be required from you. We want to point out once again that this insurance in no way takes the place of separate festival liability insurance which is part of your winery liability policy and protects you and your business.

We think this will be a great opportunity for members to show their wines in a very favorable way within this important market. Don't wait to sign up!

Go to this link to sign up now!

http://bit.ly/aRMluo

The FWWS Board

PS: Please post the details of the event on your calendar of events, e-mails, newsletters, tweets, etc. at your earliest convenience and even if you are unable to attend. This is a fundraiser for FWWS and helps to keep your dues low which we know is important to you. Thanks.