Wineries move a step closer to direct shipping

State legislature set to consider bills today

Maryland wineries that want to ship wine directly to consumers had to wait at least another day to learn if they are any closer to achieving that longtime goal.

Both the House and Senate decided Thursday to delay the matter until today.

Wineries have been pushing for direct shipping for the past decade, said Kevin Atticks, executive director of the Maryland Wineries Association. Similar bills have failed in the General Assembly the past three years, according to a state legislative analysis.

Atticks said he understood the need to ensure the issue is thoroughly reviewed.

"It's a big piece of legislation," he said. "Everyone wants to be careful that it is done right."

This week, House and Senate committees approved measures that would allow both in- and out-of-state wineries to ship wine, but would not allow retailers to do so. The Maryland State Licensed Beverage Association, which represents alcohol beverage licensees, was among those that advocated for the limitation.

The bill that passed the House committee was an attempt at a compromise after meeting with stakeholders, Del. Charles E. Barkley, the sponsor of that measure, said in a recent committee meeting.

"It will not satisfy everyone, but I think it is a good first step," said Barkley (D-Dist. 39) of Germantown.

Washington, D.C., and 37 states — including Virginia and West Virginia — allow direct shipment of wine, according to a state legislative analysis.

Allowing retailers to directly ship wine would increase revenue for private businesses and public entities, said Mitchell Pressman, owner of Chesapeake Wine Co. of Baltimore and president of the Wine Merchant Association of Maryland.

"We turn down business every day," Pressman said. "This is lost revenue for us and lost tax revenue for the city and state."

Terri Beirne, eastern counsel for the Wine Institute, a trade association that represents wineries in California, said direct shipment has worked well in other states. In Virginia, which has had direct shipment since 2003 and allows both wineries and retailers to ship, such shipments account for 2.8 percent of all wine sales and generate about $3 million annually in state tax revenue, she said.

Direct shipping has not reduced wine sales at wineries and retailers, Beirne said.

"Consumers will purchase wine online and go to local retailers and ask for them to carry that product," she said.