Virginia Farm Wineries Threatened by Loss of Self-Distribution Rights

Self-Distribution Bill, HB1288, defeated by a General Assembly Subcommittee yesterday.

ALEXANDRIA, VA, JANUARY 27, 2006 – Virginia’s farm wineries suffered a tremendous hit yesterday when a General Assembly Subcommittee struck down a bill designed to protect farm winery self distribution rights. Self distribution – the ability for wineries to serve as their own distributor by personally delivering wine to local shops and restaurants – remains the single most important factor in the growth of Virginia’s wine industry from 6 farm wineries in 1979 to more than 100 farm wineries today. The Virginia Wineries Association’s (VWA) Self-Distribution Bill, HB1288, was created to maintain these rights.

Last spring, the federal courts eliminated self distribution by Virginia’s farm wineries because out-of-state wineries are denied such a privilege and must use wholesale distributors. Delegate Chris Saxman of Staunton committed himself to solving the wineries constitutional dilemma by creating a license for small out-of-state wineries to self distribute on a limited basis in Virginia (HB 1288). At the General Assembly Subcommittee meeting yesterday, over 30 wineries, the Virginia Vineyards Association, Virginia Farm Bureau Federation, Virginia Agribusiness Council, and Virginia Hospitality and Travel Association voiced support for HB1288, many noting that the survival and growth of the Virginia wine industry cannot be guaranteed unless farm wineries are able to continue to self-distribute.

Approximately 90% of Virginia’s farm wineries self distribute in local markets, even when they also use a wholesale distributor. Ann Heidig, President of VWA and Owner of Lake Anna Winery notes, “The impact on Virginia’s farm wineries from the loss of self-distribution will be devastating. If Virginia’s laws are not fixed, many farm wineries will have no outlet for their products other than their tasting rooms and wine festivals. HB1288 will ensure the survival and continued growth of this agricultural industry."

HB1288 will be heard by the full House General Laws Committee on Tuesday, January 31st at 9:00 AM.

The Virginia Wineries Association, established in 1983, is a non-profit trade organization, representing the wineries of Virginia and dedicated to promoting public wine education and appreciation, wine and health research, quality wine production, market development and growth of the wine industry.