Maryland limits wineries' options

Allowing direct-to-consumer shipments would open market
 
  This weekend, Wicomico County is hosting its annual Autumn Wine Festival at Pemberton Historical Park. This popular event showcases Maryland wineries, allowing visitors to sample the wares of various winemakers throughout the state. Some of these wines are beginning to appear in our convenience stores and dispensaries, much to the delight of consumers.

Suppose you discover a tasty new wine that is produced in Maryland, but learn that it's not for sale anywhere on the Eastern Shore. You can purchase a sizeable quantity of the vintage and save it for special occasions --and hope the winery will show up at next year's festival so you can buy more. Or you can drive for several hours to visit the winery or find a retail distributor.

As a Maryland resident, however, what you cannot do is order the wine by phone or online and have it shipped to your door.

Maryland's law dates to 1951, when the General Assembly declared all alcohol infractions a misdemeanor. In 1999, concerned that minor children would be able to order wine directly from online retailers, the state made the misdemeanor a felony. Beginning around the same time, other states began to relax restrictions on direct shipping. In decade since then, such fears have largely proved unfounded.

Maryland's draft Direct Wine Shipper's License Bill protects minor children by requiring all carriers (UPS or FedEx; the U.S. Postal Service will not ship wine at all) obtain the signature of the person whose credit card or check was used to make the purchase. Packages must be plainly labeled "contains alcohol."

The primary opposition comes from wholesalers, who prefer the status quo. But states that have loosened restrictions have seen an increase in business for everyone -- including wholesale distributors.

Maryland state government is also losing potential revenue. The state, if the new legislation were passed, could begin collecting license fees and sales taxes from any entity wishing to ship wine directly to consumers --in-state and around the nation.

Given the built-in safeguards, potential new revenue stream and practically unlimited opportunities for expanded markets and consumers, there seems to be little justification for Maryland to criminalize direct-to-consumer shipment of wine. As the nation's economy begins to recover from this painful recession, Maryland has an opportunity to expand a fledgling industry and open its markets to the entire country.