Code of Practices Proposed for Wineries in Direct-Shipment Battle

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Kim Marcus
Posted: January 15, 1999

This week, a wine industry coalition introduced a new voluntary code of practices for wineries that ship directly to customers. Proponents of the measure see it as a way to eventually provide greater access to wines for U.S. consumers.

According to the nine-point code, proposed by Free the Grapes!, a Napa Valley-based wine industry and consumer coalition, direct shipments would be prohibited to all states that deem the practice illegal. Currently, about half the states have such prohibitions.

The code is an attempt to put wineries on the moral high ground as Free the Grapes! works to liberalize direct shipments laws throughout the nation.

"Its important that wineries abide by the laws on the books if they expect legislators to amend [the laws] to provide more access to direct shipments," said Free the Grapes! spokeswoman Seana Wagner. "The code of practices is a guideline for those wineries who want to do the right thing when it comes to direct shipments."

Direct shipments have become a political hot potato in many states because wholesalers and distributors have been protesting the growing trade in direct wine shipments, spurred in part by the growth of Internet-related sales and boutique wineries seeking to fulfill mail-order demand.

Over the past two years, seven states have made it a felony for wineries to directly ship wine to their citizens. At the other end of the spectrum, 12 other states have "reciprocal agreements" allowing direct shipments. Meanwhile, the regulation of direct shipments in the remaining states is hit or miss at best.

Free the Grapes! expects a busy spring as several state legislatures take up pro- and anti-direct-shipment legislation. "Its going to be a battle in every state," said Wagner. As part of its efforts, the coalition is compiling a list of wine drinkers to be notified of pending direct-shipment legislation in their respective states.

Other provisions of the code of practices include requirements to verify the legal drinking age of the buyer or recipient and the payment of the appropriate alcohol taxes. To view the complete code, you can refer to the News section of the Free the Grapes! Web site at www.freethegrapes.org.

Free the Grapes is circulating the proposal among wineries and industry associations for comments and suggestions until Feb. 15. No date has been set for the release of the final code.

November 21, 1998
Georgia Legislator Hopes to Repeal Direct-Shipment Felony Law

September 12, 1998
Free the Grapes! Hopes to Tap Wine Lovers in Mail-Order Battle

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