Avenue Vine

House Bill 1190 pertaining to farm winery sales would allow Indiana vintners to sell their product to consumers by the bottle at three locations apart from the winery, and increases from nine days to 30 days the amount of time per year a winery could participate in a trade show.

What it doesn’t do is allow shipping inside or outside of Indiana, and it does limit sales to retailers, which would essentially cut potential revenues the growing Indiana wine industry might experience from those sales.

Dorothy Gahimer, owner of Terre Vin winery in Rockville, Ind., and the WineShop in Monticello, said at least 40 percent of their customers are from out of state and would purchase more of their product if it could be shipped.

“Being able to ship wine inside and outside Indiana will increase our business growth."

“At least 40 percent of Terre Vin’s customers come from Illinois and we get several requests a month from customers who have bought wine in Rockville or at the WineShop, to ship them more of the wine,” Gahimer said.

She explained that Indiana wineries have been making direct sales to groceries, liquor stores, and restaurants for many years, but most wineries are too small to interest distributors.

“We have been in business for 10 years and have talked to distributors several times. They have had no interest in carrying our wines. We have been working to expand our direct sales to retailers, if this avenue is closed to us, it will result in a decrease in our income and that of our outside salesman.” She said.

HB 1190 states that it, “Prohibits a farm winery from selling wine directly to the holder of a retailer permit.”

“The legislation removing shipping and direct sales from Indiana wineries will adversely affect an industry that has been growing for several years, and many wineries say they will suffer a severe loss of income,” said Gahimer.

The bill was passed out of the House Committee on Public Policy and Veterans Affairs and up for a second reading and discussion Thursday afternoon. Rep. Don Lehe (R- Brookston)said he had heard from constituents concerning the bill including Larry Pampel, a Monticello businessman and owner of a vineyard.

“The good stuff was taken out of that during committee,” said Lehe.

“Currently the way I understand it, the bill strips the benefits wineries had, and we need to look at something to benefit them. I’m going to be looking at what we can do to get the benefits back in,” he said.

Retail sales and allowing wine to be shipped are pro-business efforts to try to develop the industry in the state Lehe said.

On the Senate side, SB 0110 allowing shipping and retail sales, still lingers in the Commerce and Transportation Committee according to a report from Sen. Brandt Hershman’s (R- Wheatfield) Statehouse office.

That’s where it may stay considering Monday morning is the last day for committee hearings and the bill isn’t on the list yet.

Hershman said in general his philosophy on alcohol laws is they are meant to prohibit illegal sale and consumption by minors.

“I don’t think there is a problem with illegal consumption for small wineries. It (HB 1190)does limit their ability in the marketplace. My general tendency would be to relax the restriction,” said Hershman.

Pampel, in addition to Whyte Horse Farm and Vineyard, is building a winery south of Monticello. HB 1190 may affect his decision to develop the business.

“That will essentially restrict small wineries. This bill went from favorable to unfavorable for small business,” Pampel said.

Where Indiana has been promoting agribusiness, to restrict sales of small, family-owned businesses that hire local workers, Pampel said, will cause them to go away.

Pampel suspects there may be influence from distributors and wholesalers behind the restrictions, but said only 8 percent of total state wine sales are by small wineries and shouldn’t affect distributors.

“HB 1190 was a compromise with distributors at first, but when it came out of committee it was changed with no chance to comment,” Pampel said.

He added that wineries are typically destinations for tourists, and with the tourism industry in Monticello, they add diversification to what the area already offers.

“This could affect our decision on whether to go ahead (with the winery),” he said.

Source: “New House bill would restrict farm wine sales,” Kevin Howell, The Herald Journal, January 26, 2006