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!
Wednesday, February 9, 2011
Thursday, February 3, 2011
Legislative Update
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.
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.
Monday, January 31, 2011
FWWS News
- FWWS Offered Opportunity for Input on Open Wine Commission Position
- All Proposed Bylaws Amendments Approved, Board Positions Open
- WSLCB Announces Compliance Checks at Wineries
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
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!
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!
Friday, January 21, 2011
Senate Labor, Commerce & Consumer Protection Committee Public Hearing
FWWS has introduced 4 bills that have been referred to the Senate Labor, Commerce & Consumer Protection 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:
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
- 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.
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.
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
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