ILLINOIS LITIGATION COULD LOCK OUT HUNDREDS OF WINERIES

The Specialty Wine Retailers Association (SWRA) led by director Tom Wark issued a press release earlier this week alerting the industry that up to 500 California wineries could be prohibited from shipping wine to Illinois consumers if pending legislation is passed.

Virtual wineries that hold Type 17 and Type 20 licenses issued by the California Alcohol Beverage Control board are not considered “traditional” wineries and would therefore not be able to ship to Illinois residents. These winemakers’ official status in California as retailers and distributors not only keep them from pouring wine at California charity functions, but put them at odds with Illinois House Bill 429 that prevents out-of-state retailers from shipping directly into the state.

California winemakers that hold type 17 and type 20 licenses usually don’t own a winemaking facility, but rather use other winemaking or custom crush facilities. In many cases, says Tom, these virtual wineries rely heavily on direct shipments to consumers, but their retailer/wholesaler license will keep them out of Illinois.

This stands as the latest update in the ongoing series of Granholm fueled court cases throughout the country.