The News Post

WineAmerica Commends Arizona Passage of Expanded Direct-to-Consumer Wine Shipping Bill

April 4, 2016 by Tara Good

4.4.2016

by Michael Kaiser

WineAmerica almost exclusively focuses on federal policy, but every once in a while we get involved in a state-specific issue if the end result has a positive outcome for the American wine industry. To that end, we commend Arizona for enacting a new law that would expand direct-to-consumer wine shipping.

Current Arizona law states that wineries producing 20,000 gallons or less (which works out to 8,412 cases) or less can ship wine directly to Arizona consumers unless the consumer was present at the winery when the wine was purchased. The new law (SB 1381) removes the winery visitation requirement and opened shipping to all wineries.

The new law provides for a limited, regulated and tax paid shipping by American wineries who obtain a license from the Arizona Department of Liquor Licenses and Control. The new licenses will begin to be issued no later than January 1, 2017. There is a gradual increase in the amount of wine that can be shipped to an individual consumer in the three years after the new law goes into effect: 6 cases through 2017; 9 cases in 2018; and 12 cases beginning in 2019 and thereafter. The law includes safeguards to prevent wine being shipped to minors.

WineAmerica worked with the Wine Institute, Washington Wine Institute, Oregon Winegrowers Association, and the Arizona Winegrowers Association to ensure passage of the new law.

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Questions? Contact Michael Kaiser, Director of Public Affairs, mkaiser@wineamerica.org.

WineAmerica is the national voice the American wine industry. Based in Washington, D.C., WineAmerica represents wineries in 43 states and leads a coalition of state and regional wine and grape associations. As an industry leader, WineAmerica encourages the dynamic growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy

The Craft Beverage Expo and ShipCompliant Direct: WineAmerica Registration Discounts

April 4, 2016 by Tara Good

WineAmerica members qualify for registration discounts at two exciting and dynamic conferences.

Craft Beverage Expo

WineAmerica is a supporter of the third annual Craft Beverage Expo, being held in Oakland, California this May 18-20. The Craft Beverage is a cross commodity conference and trade show focusing on post production products and education. WineAmerica members will receive a 15% discount. To get the code for the discount please contact us at mkaiser@wineamerica.org. For more information, please visit the Craft Beverage Expo website.

ShipCompliant Direct

Join the wine community and help shape our industry as we Build Tomorrow at ShipCompliant’s 11th annual DIRECT Conference on June 23-24 in San Francisco!

Come hear from industry experts and motivational keynote speakers who will discuss innovation and the future of our industry, build relationships in the wine community, and share best practices with your peers. DIRECT is the most well-attended event in the industry every year, with hundreds of wine industry representatives present, including wine club managers, heads of marketing and hospitality, compliance managers, shipping department managers, winery owners, third-party marketers, and trade media.

This year’s conference will feature industry experts including:

Steve Gross, Vice President, State Relations, Wine Institute
Susan Evans, Executive Liaison for Industry and State Matters, Alcohol and Tobacco Tax and Trade Bureau

Learn more and register here.

WineAmerica Members receive 10% off registration. To get your promo code, send and email to mkaiser@wineamerica.org.

TTB Publishes FAQ on Tied House Ruling

March 21, 2016 by Tara Good

3.21.2016

by Michael Kaiser

The TTB has issued a set of frequently asked questions in response to their ruling on federal tied house violations (see our analysis here). The ruling was issued last month and was in response to Kroger’s proposal to allow a large distributor to control shelving in their stores.

The TTB has made it clear that industry members may provide retailers a plan for shelving, but nothing further. An industry member may not provide and “inducement” or a “thing of value” to the retailer. While not mentioning Kroger by name, the TTB notes that any category management arrangement between an industry member and a retailer may not result in the exclusion of a competitor’s products. Any such practice would be considered a violation of the Federal Alcohol Administration Act.

When the ruling was published, it was not clear if there were to be an exceptions to what is considered a “thing of value”. The TTB has clarified a few exceptions to what is and is not allowed. They are as follows:

Product displays not to exceed $300 per brand
Advertising items such as posters, coasters, paper napkins, foam scrapers, calendars, ash trays, cork crews, shirts and caps
Consumer coupons and contests
Consumer tastings and samplings

To read the full FAQ as published visit the TTB’s website.

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Questions? Contact Michael Kaiser, Director of Public Affairs, mkaiser@wineamerica.org.

Mandatory FDA Menu Labeling Delayed Until Next Year

March 14, 2016 by Tara Good

3.14.2016

By Michael Kaiser

Chain Restaurant Menu Labeling to be implemented in 2017

As a result of language in the omnibus appropriations bill enacted December 18, 2015 FDA is delaying enforcement from December 1, 2016, to the date that is one year after it issues final guidance on menu labeling. It is unclear when the final guidance will be issues, but we expect it sometime later this year. Restaurants of twenty or more locations will be required to list the nutritional information of all standard menu items when the rule is implemented. Alcohol is included in the labeling requirements.

WineAmerica has been following this issue for some time now, as alcohol is not exempt. The FDA was required to establish the rule under the nutrition labeling requirement contained within the Affordable Care Act of 2010. Alcohol, which originally was proposed to be exempted by the FDA, is now included in the labeling requirement for restaurants.

A restaurant that meets the parameters will have to list the calorie and nutrition information for all beer, wine and spirits listed on a menu. Mixed drinks not listed on a menu are exempted from the requirements, as are liquor bottles on display behind a bar. Restaurants have significant flexibility in choosing a basis for nutrient contents disclosures. This can include the USDA’s National Nutrient Database for Standard Reference. The USDA’s National Nutrient Database for Standard Reference includes the categories, “alcoholic beverage, wine, table, red,” “alcoholic beverage, wine, table, white,” among several other general categories for alcoholic beverages. The USDA will allow covered establishments to use these entries as the bases for their nutrient content disclosures for alcoholic beverages that are standard menu items.

The FDA will not be encroaching on the TTB’s regulation of the alcohol industry, and all of the nutrition labeling requirements will comply with TTB requirements. Alcohol producers will not be required to disclose the nutritional content of their products or conduct laboratory analyses of their products. The burden for disclosure is on the covered establishments (restaurants) and they will be allowed to use the accepted USDA measurements for caloric and other nutritional content.

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Questions? Contact Michael Kaiser, Director of Public Affairs, mkaiser@wineamerica.org

WineAmerica is the national voice of the American wine industry. Based in Washington, D.C., WineAmerica represents wineries in 43 states and leads a coalition of state and regional wine and grape associations. As an industry leader, WineAmerica encourages the dynamic growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy.

Final Step Taken to Avoid Costly Tariffs on American Wine in Canada

March 14, 2016 by Tara Good

3.7.2016

By Michael Kaiser

The Department of Agriculture (USDA) has finalized the rule repealing country of origin labeling rules (COOL) for certain muscle cuts of meat. The repeal, as authorized by the 2015 Omnibus Appropriations Bill, will allow the the US to avoid costly tariffs places on goods, including wine, exported into Canada and Mexico.

WineAmerica worked tirelessly as a member of the COOL Reform Coalition to make sure the COOL rules were repealed to avoid a complete disruption of the American wine market in Canada. In 2014, U.S wine exports to Canada reached $487 million, a 7% increase from 2013. Retail sales for American wine in Canada now eclipse $1 billion. In 2013 the U.S. was the second largest exporter of wine to Canada, with a 16% market share among wine imports sold in Canada. If the over $1 billion in retaliatory tariffs were implemented by Canada, the costs of US wine exported to Canada would have rose exponentially. If the Canadian market was to shrink, the excess wine would have remained in the United States, causing a glut. This was not something our industry would have been able to tolerate.

The COOL issue is an example of an issue that seemingly has no bearing on wine, but as a value added product, it is an easy target for tariffs and other trade barriers. WineAmerica did not have a position either way on the labeling rules themselves, but in order to protect the interests of American wine in the Canadian market and here in the United States, we had to become a leader in the COOL Reform Coalition. We worked hand in hand with our partners working House and Senate offices to secure repeal. When a witness was needed for a Senate hearing, we provided it (Wine Testifies for the Senate) and without the work of our grassroots network we would have never been able to stop the tariffs from being implemented. Wineries and associations from as far flung as Washington and Virginia played an important role in getting the message out about the dangers of this issue.

This COOL repeal is just one example of what WineAmerica is doing in Washington, DC to protect the business interests of American wineries. We are the only national organization working for the American wine industry in our nation’s capital.

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Questions? Contact Michael Kaiser, Director of Public Affairs, mkaiser@wineamerica.org