Bill would lift wine direct-shipping ban

New Jersey wine connoisseurs could soon have cases of their favorite product shipped directly from Napa Valley vineyards to their front doors, under proposed legislation that would lift the state's direct-shipping ban on wine.

The bill, sponsored by Senate Majority Leader Stephen Sweeney and Assemblyman John Burzichelli, would also give New Jersey wineries the ability to send their products directly to in- and out-of-state customers, opening the door to a whole new marketplace for small wineries that legislators hope will put them on the map.

"Everything's (about) the California wines, why can't it be the New Jersey wines that are talked about around the country?" said Sweeney, D-3rd Dist.

Currently, wines can be shipped through retailers, although advocates for the legislation say that unless a winery can produce thousands of bottles, it is unlikely their product will be picked up.

The lawmakers said the legislation would boost opportunities for the state's agricultural community while giving consumers the same buying power as residents in 36 other states.

But the bill is getting push-back from retail associations, concerned that cutting them out of the supply chain would impact their bottom lines.

Barbara McConnell, a lobbyist for the New Jersey Licensed Beverage Association, which represents bars and taverns that also sell packaged goods, said the legislation comes at a time when the industry is already experiencing lower sales because of the tough economy.

"We think it's just going to have a further economic impact," she said.

McConnell said she believed the bill would also reduce sales and excise tax revenue to the state because of new collection processes and provide underage residents with access to wine through Internet ordering.

Supporters of the measure have brushed off those arguments.

Stephen Reid, senior vice president of the Princeton-based lobbying firm Capital Public Affairs, who is pushing the direct-shipping effort through a group called UncorkNJ, said the measure is more about providing choices to wine-lovers than impacting existing business.

"This is not a bill to hurt local liquor stores, this is so far from the truth," Reid said. "If you wanted a bottle of wine for dinner, you would go down to your local liquor store like you do today and buy a bottle of wine."

"This is for people that are in local wine clubs," he added. "This is wine that you can't get at your local store."

Countering the concerns about underage drinking, Reid said residents accepting an order would have to be at least age 21 and have to sign for the shipment.

Denise Slattery, marketing director for AmericanWinery.com, a Walla Walla, Wash., company that promotes direct sales through wineries, said the measure would also allow local wineries to keep more of the profit, instead of sharing with distributors and retailers.

"The few hands it touches, the less expense involved," Slattery said.

The measure (S-1810) was scheduled for a hearing Monday, but canceled because of the weather. It has yet to be rescheduled.