Archive for April, 2008
Update Your Address Books: New Hampshire Has a Revised Direct Shipping Monthly Report
April 25th, 2008
New Hampshire has updated their Monthly Direct Shipping Report Form. According to the NH Bureau of Enforcement, many wineries have been sending this report to the wrong address; the new form has been issued in part to remedy the incorrect send-to address. The new form is in an Excel format for easier use, and will automatically calculate the total due, based off of the invoice totals that you enter. The new form is available on the NH Liquor Commission Website. You can also view the new form by clicking here.
Make sure your records are up to date with the current contact info for the NH Bureau of Enforcement:
Mailing Address (send your returns to this address):
Bureau of Enforcement
Direct Shipping
PO Box 1795
Concord, NH 03302-1795
Physical Address:
Bureau of Enforcement
Direct Shipping
10 Commercial St
Concord, NH 03301
Tel: (603) 271-8543
Fax: (603) 271-3758
Though the updated form is in an electronic format, New Hampshire does not allow you to submit copies of invoices or payment electronically. You can only send in an electronic version of the Direct Shipping Monthly Report if you have zero orders to report; you can send zero order reports to directshippers@liquor.state.nh.us.
Illinois Direct-to-Consumer Permit Applications Available
April 24th, 2008
The Illinois Direct-to-Consumer Permit applications are now available on the Wine Institute and Illinois Liquor Control Commission’s websites. Beginning June 1, 2008 wineries will be required to have an “Out-of-State Winery Shipper’s License,” file reports, obtain a bond and pay sales and excise tax in order to ship wine to consumers in Illinois. Wineries with a valid Shipper’s License issued by the Illinois Liquor Control Commission will be permitted to ship up to 12 cases a year to a consumer who is 21 years of age or older, an increase over the 2 case annual limit in the reciprocity law being replaced.
The application process separates wineries into 3 classes based on the total of gallons manufactured annually. The license for each class varies. Class 1 wineries have a $150 license fee and produce less than 250,000 gallons annually. Class 2 consists of wineries producing more than 250,000 gallons but less than 500,000 gallons annually. The license fee for Class 2 is $500.00. Class 3 wineries have a $1000.00 license fee and manufacture 500,000 gallons or more annually. A copy of the applicant’s state manufacturer’s liquor license (Class 02 Winegrower’s license in CA) and copies of all federal label approvals must be submitted with the license application. Brands not already registered with the Commission must be registered prior to, or simultaneously with, the direct shipper application filing. Class 1 wineries may apply for self-distribution privileges by completing the “Self-Distribution Exemption” form. Class 2 and 3 wineries are not eligible to self-distribute in Illinois.
Once the Illinois Winery Shipper’s License is issued, the Illinois Department of Revenue will mail the permit holder the Liquor Direct Shipper Wine Return Tax form. Excise taxes must be paid monthly and there is a $1000.00 bond requirement. The permit holder has the option to pay excise taxes electronically or by mail. Permit holders are responsible for paying sales tax. The Department of Revenue has not published instructions for sales tax registration at this time. As soon as the information becomes available it will be posted on the Wine Institute website. Should you have any questions please contact the Wine Institute State Relations Department at 415-356-7530.
Annie Bones | State Relations | Wine Institute
Wine Is Not the Maine Event
April 18th, 2008
A bill that would have allowed in-state and out-of-state producers, suppliers, importers, wholesalers, distributors and retailers to ship wine to Maine consumers passed through the Senate but after a close vote, died on the House floor yesterday evening. If LD1987 (a.k.a. SP781) would have passed as amended by the Senate, the bill would have allowed licensed entities to ship up to 108 Liters of wine to an of-age individual in a calendar year. Other requirements:
- Containers of wine shipped cannot be smaller than 750 mL
- Report and pay sales and excise taxes
- The bureau may adopt rules requiring specific labeling and registration requirements for direct shippers
- “The direct shipper or 3rd party carrier contracted by the direct shipper… check for a valid form of identification demonstrating proof of age.” Common carriers register with the state of Maine.
LD 1987 went far in its legislative journey before failing in the House. The bill would have been a step forward for Maine consumers and offered wine producers, retailers, and wholesalers alike an equal opportunity to ship wine directly to eager consumers.
More Events – come join us!
April 12th, 2008
ShipCompliant will be participating in two events this month. If you are in the area, please try to attend!
Women for WineSense
Professional Members Only – Real Life Compliance Solutions
This event is meant to supplement the full-day TTB seminars occurring in the area at the same time. A legal overview will be provided by Susan Cagann, Special Counsel, Farella Braun + Martel. She will cover state and federal trade practice law along with legal issues concerning advertising, marketing and distributing wine.
If you are interested in attending the event or joining their Professional Members group, please send WineSense an email.
Christina Carr, Marketing Manager at Gundlach Bundschu will host the marketing panel consisting of ShipCompliant and New Vine Logistics presidents, Jason Eckenroth and Katie Hoertkorn. The companies will review best practices and provide actionable advice on direct shipping compliance.
WHEN: Wednesday, April 23 — 530-8PM
WHAT: Real-life Compliance solutions – legal and marketing.
TASTE: Our program will be accompanied by fine Mondavi wines paired with tasty hors d’oeuvres.
WHERE: Robert Mondavi Winery, Highway 29, Napa
COST: $20 Professional members, $35 invited non-members
Wine 2.0 Spring Fling
ShipCompliant’s Software as a Service (Saas) approach of enabling any technology system to integrate our best of breed compliance web services is well received among Wine 2.0 companies. Join the Wine 2.0 crowd at Crushpad on April 24th and meet some of our staff in person. They expect more than 200 attendees to enjoy an evening of great wines at Crushpad’s new urban winery location.
EVENT SPECIFICS
WHEN:
Thursday
April 24th
7pm – 10pm
WHERE:
Crushpad, Inc.
2573 3rd Street
San Francisco, CA 94107
DIRECTIONS
Caps Off to Dolan’s Intentions
April 11th, 2008
In October of last year, wineries began shipping directly to Ohio residents under a new direct shipping permit law. When the provisions of the law in Ohio were first announced, one of the major subjects of controversy was the capacity cap, which only allows wineries that produce less than 150,000 gallons annually to obtain a permit. Capacity caps continue to be a subject of controversy in all the states that use them (currently Arizona, Massachusetts, Indiana Kentucky and Ohio; Florida could adopt a 250,000 gallon cap if SB1096 or HB1293 is passed).
Continuing the controversy, Ohio Representative Matthew J. Dolan is looking to increase the capacity cap for wineries from 150,000 to 250,000. Though the increase in production volume may be a “little step” in the right direction, it certainly seems like a very little step, allowing only 17 more California wine labels to be shipped to Ohio residents. According to The Plain Dealer, Dolan originally vowed to eliminate the cap altogether, but got a lot of pushback from the Ohio Department of Commerce and from Ohio Distributors (as Uncorked points out, “no surprise”).
Just next door, Indiana also prevents wineries producing over a certain amount of wine per year from shipping directly to its residents. Indiana’s original capacity cap was 500,000, but will increase on July 1, 2008 to 1,000,000 gallons since SB0107 was signed on March 13th by governor Daniels. Though this is the highest volume cap of the four states that have said restrictions,
Many will agree that any permit system that discriminates against a winery for the amount of wine produced is not an ideal permit system. Furthermore, the constitutionality of these caps is being challenged through litigation (see Family Winemakers of California vs. Jenkins). State legislators may adopt a capacity cap restriction for any number of reasons, but none of them seem very fair. The state may claim that it is trying to protect its own wineries by establishing the volume cap just above that of the highest producing in-state winery, but who else is being protected while the consumer’s interests fall by the wayside?
Update: In our original post, we mistakenly stated that that Indiana has a capacity cap that is similar to OH, KY, MA, and AZ. The 500,000 gallon “cap” in Indiana that will increase to 1,000,000 gallons on July 1st, 2008 only applies to wineries in that the applicant must not sell more than this amount of wine per year IN Indiana, excluding wine shipped to an out-of-state address.
Direct to Consumer Symposium – May 1st and 2nd 2008
April 10th, 2008
Direct to Consumer Symposium
May 1-2, 2008
Meritage Resort, Napa, CA
Proceeds to Benefit Coalition for Free Trade and Free the Grapes!
Register here
Sessions will include:
- Who Is Buying? Consumer Research Findings
- Starting a Winning Direct Marketing Program
- Direct to Consumer Legislation and Enforcement
- Using Food & Wine Marketing to Increase Tasting Room Traffic
- Strategies & Best Practices to Grow Direct to Consumer Sales
- Litigation Updates from Coalition for Free Trade
- Start Up/Start Over – Lessons from the Winery Trenches
- The Down & Dirty on Compliance
- Using Telemarketing for Customer Service and Profit
- Strategies and Tactics to Increase Your Mailing List
- A State by State Shipping Update
- Grow Your Wine Club to 5,000 Members & Beyond
