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House Committee Votes to Ban All Retail Wine Delivery PDF Print E-mail

by Joel Goldberg

A State House Committee has unanimously approved a bill to halt all retail wine delivery in Michigan, whether by in-state or out-of-state merchants. The action, on a 6-0 vote, came Thursday, November 13, one day after the bill was introduced.

 
SHIPPING TIMELINE

SEPT 30
-- Federal Judge Denise Page Hood overturns Michigan's ban on out-of-state retailers shipping wine into the state

OCT 3
-- Internet retailer Wine.com announces entry into Michigan market

OCT 6 -- Judge Hood stays enforcement of September 30 ruling, pending an appeal

OCT 9 & 14
-- MichWine places two orders with Wine.com for delivery to Michigan

OCT 10 & 15
-- Wine.com confirms shipment of two orders from California

OCT 16 & 21
-- Two Wine.com orders delivered in Michigan, violating court stay

OCT 23 & 24 -- Defendants file appeal of Judge Hood's ruling

NOV 12
-- State Reps Farrah and Ward introduce bill to ban all retail wine deliveries

NOV 13
-- Rep. Farrah's committee holds public hearing and approves shipping ban
 
Prior to voting, the House Regulatory Reform Committee gave just 15 minutes email notice of the bill's required public hearing. The full House will consider the bill when its lame duck session resumes in early December, after the hunting season recess.

The legislation would outlaw such common practices as sending gift baskets that contain wine, or stores delivering wine to the site of a wedding or party. Michigan retailers could only turn over wine to customers at their stores, and consumers would lose the right to order wine by phone or online for retailer delivery.

According to Cari Noga in Crain's Detroit Business, the ban would also jeopardize the existence of new Michigan online startup, Winebuys.com, whose entire business model relies on shipping directly from Michigan to customers nationwide. Noga reported its Detroit-area founders recently invested over $1 million to start the business, and anticipate $10 million in sales by next year.

The bill, co-sponsored by term-limited lame duck Representatives Barbara Farrah and Chris Ward, came in response to a recent Federal court decision (article) that overturned Michigan's retail wine shipping law as unconstitutional.

The invalidated law let in-state retailers ship or deliver wine to their customers, but denied the same right to out-of-state merchants.

 
Pay-to-Play in Lansing?
 
Michigan's Beer and Wine Wholesalers have already reported political donations that exceed $700,000 during the current election cycle, according to the Detroit News. This figure doesn't include contributions made close to Election Day.

Numbers supplied to MichWine by Rich Robinson of the Michigan Campaign Finance Network show that members of the House Regulatory Reform Committee -- which just passed the Wholesaler-supported delivery ban -- took over $37,000 from the MBWWA. Rep. Barbara Farrah, 
the bill's sponsor and Committee chair, also got more than $3,000 in "travel expenses" to attend the last two MBWWA winter meetings.

"This is the sort of shameful, pay-to-play politics that creates the extraordinary cynicism Americans have toward the political process," Tom Wark, executive director of the Specialty Wine Retailers Association, told an AP reporter.
 

Robert Epstein, plaintiffs' attorney in the case, called the legislature's attempt to prohibit all retail shipping "vindictive", noting that  Michigan's own retail businesses and consumers would be the major losers if the proposed delivery ban passes. Epstein acknowledged that a ban could supply grounds for the State to return to court and seek dismissal of the original verdict.

Those who received sufficient advance notice to attend the Committee hearing included representatives of the Michigan Beer & Wine Wholesalers Association (MBWWA) and the state's Liquor Control Commission, both of whom spoke in favor of the ban.

MBWWA members are among the state's top contributors to the campaign coffers and officeholder funds of Michigan legislators (see sidebar). They control the selection, price and distribution of nearly all wine sold at retail and in restaurants within Michigan.

If the legislative delivery ban fails to pass and the court ruling remains intact, Michigan consumers would have an option to receive wine deliveries from out-of-state retailers who don't buy from MBWWA members.

Last update: 11/17/08

PREVIOUSLY  IN MICHWINE ON RETAIL SHIPPING:
Original story: Court throws out Michigan retail shipping law, with updates
Judge Hood's full ruling (will open in new tab or window)
Judge Hood's stay order (will open in new tab or window)
Editor's Blog: Don't place your order yet
Story: Wine.com shipping to Michigan in violation of court stay
Editor's blog: Wine.com is wrong. But Michigan's shipping ban is much worse.
Story: State and Wholesalers appeal court ruling, with updates

 
Obama Wins 8 of Top 10 Wine-Producing States PDF Print E-mail

Mawby Obama wineAccording to the San Francisco Chronicle's  SFGate website -- where such information is extremely important -- Barack Obama beat John McCain in 8 of the nation's top 10 wine producing states, including Michigan. The two outliers: Texas and Kentucky.

Obama won in states that house 88% of all U.S. wineries, and produce either 98 or 99% of all U.S. wines, depending on which poll you read.

At right, Larry Mawby shows off a bottle of his (sold out) Obama sparkling wine. Mawby donated $1 from each bottle to the Obama campaign.

-----------------------------

Photo courtesy of the Leelanau Enterprise

 
Two Lads Shutters Tasting Room PDF Print E-mail

Problem? No wine left!

twolads.png

Old Mission Peninsula winery Two Lads announced on October 17 that it had closed its tasting room until April, 2009, because it has completely run out of wine.

The new winery, whose industrial-modern design became an instant tourist magnet, had just 1800 cases of wine available to sell during its first summer in operation.

When the winery reopens, Two Lads will offer its first Riesling, along with a Cabernet Franc, Cabernet Franc Reserve, and Merlot from the highly-regarded 2007 vintage.

 
How sweet is that Riesling? PDF Print E-mail

That's easy -- look at the label!

You may soon be able to figure out how just how dry -- or sweet -- a bottle of Michigan Riesling tastes with a quick glance at its label.

  Riesling Taste Profile

If you're a Riesling fan, the new Taste Profile could be good news. You can try an unknown bottle with confidence that you won't get stuck with a wine that's much sweeter -- or drier -- than you wanted.

Here's a rundown on how it works, and what that means to you.

  • Riesling labels may show a sweetness scale on the label, starting with the 2008 vintage
  • The scale ranges from "Dry" on the left to &quot

The "Riesling Taste Profile" pinpoints a wine's sweetness on a scale from Dry to Sweet. The International Riesling Foundation (IRF) developed the Profile in consultation with wineries in a half-dozen countries, and made it available earlier this month for winemakers worldwide to print on their labels.

"Riesling’s many styles can fit almost any taste preference, but consumers may be put off if they are expecting one taste and get another," explained California wine journalist Dan Berger, who spearheaded the profile's development for the IRF.

"It allows wine tastes to be more easily conveyed to consumers," said Ed O'Keefe III, president of Chateau Grand Traverse, Michigan's largest Riesling producer. "Today, people can put a wine out there and call it dry, even if it's sweet."  (See  MichWine's interview with O'Keefe, below, for more details.)

 
Ed O'Keefe on the Riesling Profile PDF Print E-mail

Ed O'Keefe III is President of Chateau Grand Traverse on Old Mission Peninsula, Michigan's largest Riesling producer. He's also the state's lone representative on the International Riesling Foundation Board that developed the Taste Profile. He spoke with MichWine's Joel Goldberg about using the Profile, how it was developed, and the role he sees it playing at his winery and elsewhere.


MichWine: Can you give us a one sentence description of  the Riesling Taste Profile?

Ed O'Keefe III: It's a complicated computation that allows wine tastes to be more easily conveyed to consumers as well as allow people on the sales end to effectively communicate to customers.

Today, people can put a wine out there and call it dry, even if it's sweet.

Ed O'Keefe III
Chateau Grand Traverse's Ed O'Keefe III
MW: Expand a little...

EO'K: Wineries will be able to convey information to consumers, and restaurants can have a little more ease at tableside selling. We've used a scale like this in our tasting room, and it's been a very useful tool.

It's fantastic that there are a number of wineries around the world that are dealing with the same issues of conveying information to their consumers, and we are all coming to a consensus to address it the same way. Wineries in Canada, Germany, New Zealand, wherever are dealing with the same consumer issues that we are in the marketing of Riesling.

MW: So this is a way people can compare apples and apples?

EO'K: Basically true. Today, people can put a wine out there and call it dry, even if it's sweet. People can use terminology any way they want.

For example, Dan Berger noted on a couple of occasions that when our [Chateau Grand Traverse] wines are entered in competitions out West, we would describe them as being sweet or semi-sweet, when it's perceived in their area as being a dry or off-dry wine.

 

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