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published Sunday, March 2nd, 2008

Wineries hopeful about Georgia shipping law


by Lori Yount

ATLANTA — Georgians soon may not have to make lengthy trips to buy their favorite home-state wine.

The House overwhelmingly passed a bill last week that would allow wineries that acquire a special license to ship wine directly to individual Georgia customers.

Direct shipping will help most small Georgia wineries that are unable to attract wholesalers to distribute their product, said Steve Gibson, general manager of Habersham Winery near Helen, Ga.

He said larger wineries like his may be able to generate more Internet sales.

“Georgia’s a big state,” Mr. Gibson said. “(This bill) gives us the ability to reach our customers.”

Being able to directly ship to individual customers would boost business “quite a bit” for The Georgia Winery in Ringgold, said owner Patty Prouty.

“People call on a continual basis” asking for wine shipments, she said. “We have customers all over the state.”

The winery near Interstate 75 generates some loyal Georgia customers, but they are unable to order wine shipments.

Mrs. Prouty said she thinks it’s “great” there’s serious movement on a direct shipping law after 25 years of wineries’ pushing for it.

Rep. Roger Williams, RDalton, who co-sponsors both pieces of legislation, said, “It’s a great economic tool. We’re helping home-grown farm wineries flourish.”

More than 30 states allow the direct shipping of wine, but opposition from wholesalers afraid of being cut out as the middle man has kept such a law from passing in Georgia.

But this time around, the bill faces no opposition, its sponsor Rep. Ron Stephens, R-Savannah, told House members before they voted 126-8 to pass the direct shipping measure.

The wine wholesalers stopped opposing the bill this year after it answered concerns about state sales taxes, which the wineries would still collect under the law, and provided for age identification and adult signatures of customers, said Fred Kitchens, executive director of Wine and Spirits Wholesalers of Georgia.

“This is a limited shipping bill,” he said. “We don’t think it will have much impact on our business.”

The law would allow a maximum of 12 cases to be sent to any one individual each year. The winemakers would not be allowed to ship directly to businesses licensed to sell alcohol.

The House also passed a bill that would allow wineries to sell in their tasting rooms their wines, wine from other wineries and even liquor and beer, if allowed in their jurisdictions.

Mr. Kitchens said wine wholesalers are pushing for the bill because they have “empathy” for Georgia farm wineries.

“I think they’re trying to succeed within their niche,” he said. “They do rely primarily on visits. They’re generally remote, and in order for them to continue, for customers to continue to visit, they must have the ability to direct ship.”

Both bills must be passed by the Senate and signed by Gov. Sonny Perdue before becoming law.

Rep. Williams, R-Dalton, said senators have been “receptive.”

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