WASHINGTON SIGNS IN THE FIRST DELIVERY BILL

As expected, Washington State Gov. Chris Gregoire signed a bill allowing out-of-state wineries to ship directly to Washington consumers yesterday, March 14. According to sources, the move is not likely to help local wineries as it is only inviting competition from other states. Washington is the second largest premium wine producer behind California with a $2.5 billion industry, and previously did not allow vintners from other states to ship directly without reciprocity. Gov. Gregoire is soon expected to sign a bill that will allow out-of-state wineries to sell directly to retailers without using a distributor. Although the move is hailed by wineries, it leaves one to wonder if they are up to the task. Even Tim Hightower, president of Washington Wine Institute, expressed uncertainty to komotv.com: “It helped set the precedent for opening up shipments from all states, but on the other hand, there's a regulatory hurdle that you have to jump through, obtaining a permit and paying of additional taxes.” Are wineries jumping the gun? Most wholesalers have had decades of experience dealing with retailers and producers, paperwork and taxes, and they know how to get the job done. Furthermore, states that allow direct shipping are already having efficiency problems between suppliers and consumers with all the legal quandaries and expensive licenses. Let me know what you think. megan@winespiritsdaily.com