Wine producers form cooperatives

MILWAUKEE - Small wineries in Wisconsin are forming cooperatives to keep their wines on the shelves of grocery and liquor stores.

A state law taking effect Oct. 1 requires all wineries, including those in Wisconsin, to use wholesalers, unless they sell directly to a consumer or make less than 25,000 gallons a year and go through a cooperative.

Marion Weglarz of Weggy Winery in Richland Center has started organizing the Wisconsin Winery Co-op. Weglarz says if "you haven't joined a co-op, you're out of luck."

Steve Kennedy co-owns Burr Oak Winery in New Lisbon. Kennedy says a wholesaler probably wouldn't even handle a winery his size, so he plans to join the Wisconsin Winery Co-op.

The new law is the result of a U.S. Supreme Court ruling in 2005 which says states can't discriminate between in-state and out-of-state wineries. Currently, Wisconsin requires wineries to sell through wholesalers only if they are based outside of Wisconsin.