Tuesday, January 16, 2007
Small wineries need the ability to distribute
From the RoundTable blog
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David Manley
Manley is owner of West Wind Farm Vineyard and Winery in Max Meadows.
Recently The Roanoke Times published a commentary piece written by James Archer of Blue Ridge Beverage, a distributor in Salem ("Wine solutions should help everyone," Dec. 28). While his piece seemingly took a more reasonable tone than those written previously, it was still chock-full of hyperbole and irrational alarm. Additionally, it generally missed the point.
All that the 110-plus family-owned Virginia wineries have ever sought is access to the same marketplace in which Blue Ridge Beverage and other distributors in the commonwealth operate. No one seeks to dismantle the three-tier system of alcohol distribution or supports chaos reigning in Virginia's beverage market. Barring our participation in the marketplace flies counter to the values of the free market and entrepreneurial spirit that caused many of the Virginia wineries to become established in the first place.
From 1980 until July of this year, Virginia wineries collected the same taxes and filed the same reports as did Virginia distributors. Instead of doing it primarily for companies like Anheuser-Busch and Gallo, we did it for our own small, independent operations.
For 26 years, the system operated with efficiency and was a model for the rest of the United States. The commonwealth worked hard to build its wine industry to one of national renown and respect. Unfortunately in July, Virginia effectively cut the legs out from under the same wine industry that it worked so hard to build.
Returning the ability to self-distribute their own products to Virginia wineries would underscore the importance of free enterprise and small business and return Virginia to its rightful place as a national model for building a state's wine industry. Legislation is being introduced by Del. Chris Saxman of Staunton and Sen. John Watkins of suburban Richmond to address this issue. On the House side, the bill that would allow small farm wineries (under 3,000 cases production) to return to the marketplace is H.B. 2450.
Our winery is located on a fourth-generation farm in rural Wythe County. The importance of a family business is no more evident to anyone than it is to us. We undertook this venture, in part, to protect the integrity of the family farm and its heritage.
We were only open a month before the letter of prohibition came down from Virginia's ABC board this summer that required us to cease off-site sales unless they were first funneled through a distributor. We understand the value of proper control of alcoholic beverage sales and inventory in the commonwealth and do our part every month in reporting sales, inventory and paying our taxes.
Our production ranks us among Virginia's smaller wineries. This is by design. We make small batches of high quality Virginia wine. Economically, it would only make sense to sell through a distributor once our production reached approximately five times our current level. We don't want this to keep us from achieving broader exposure for our product in the local and regional marketplace.
We have been approached by several restaurants and specialty retailers seeking to carry our products. We'd love nothing more than for a nearby restaurant to offer local wine. Or for a fan of our wines in Blacksburg to be able to shop locally so that he or she doesn't have to drive to Fort Chiswell. If we had to sell through a distributor, our product would certainly cost significantly more once it reached a restaurant table or store shelf, resulting in harm to Virginia consumers.
Restoring a right exercised by Virginia wineries for 26 years is not too much to ask. To require small wineries to pass their wine through middlemen and distributors before it reaches the public is too much to ask.
I urge support of legislation this session that works to restore the ability of small Virginia wineries to self-distribute their farm-made products. Our participation in the free market is in perfect concert with the values that families in small business stand for.
