KENTUCKY JUDGE LIFTS BAN ON OUT-OF-STATE WINERIES

A Kentucky Judge has eliminated the ban on direct shipments from out-of-state wineries, making it legal for small wineries anywhere in the nation to ship to Kentucky residents – assuming they have a license. Kentucky put a cap on what they deem “small wineries” by only allowing those that produce less than 50,000 gallons of wine a year to ship direct.

Under the new law, face-to-face sales were thrown out the window. Consumers were formerly required to order wine in person before having it shipped, but will now be able to make out-of-state orders by telephone, mail or Internet. In addition, the ruling eliminates a provision in Kentucky law that allows small wineries to ship their product directly to retailers and bypass wholesalers.

The impact the decision will make remains to be seen. Since Granholm, many wineries have reported a surge in sales thanks to direct shipments. However, others believe its more trouble than its worth, and tell customers they can’t or won’t ship wine. The frequently complex and costly regulations that differ from state to state leave some family wineries unclear on what they can and cannot do, so they opt to give up shipping altogether.

Kentucky wholesalers are currently planning their next move although no final decisions have been made, according to local newspapers.