Greenville lawmaker, Rep. Deborah Hudson, is continuing an effort to allow direct shipments of wine.
More than 90 percent of the nation’s wine consumers can have bottles sent to their homes via FedEx and other carriers, but Delaware has been bucking the trend on this issue, with wholesalers and the Teamsters Union opposing the measure on fears of lower sales.
Delaware has far fewer wineries that can make their views known in Legislative Hall when compared to its neighbors, although the number of wineries has grown to four in Kent and Sussex County.
In 1998, there were 17 states that allowed a winery to ship directly to an adult consumer. There are now 40 states that allow the practice.
“The bottom line is that … winery-to-consumer direct shipping is really the norm at this point,” said Jeremy Benson, executive director of Free the Grapes! — a coalition of consumers, wineries and retailers supporting direct wine shipment.
Benson said there are approximately 8,000 wineries in the nation. “The vast majority of them are family-run vineyards that do not have national distribution and they rely, quite heavily, on direct-to-consumer sales.”
Hudson, R-Fairthorne, has repeatedly introduced legislation to authorize the shipments.
Under Rep. Hudson’s House Substitute 1 for House Bill 60, wineries wishing to ship their products to Delaware would need to obtain a state license. Carrier companies handling the product, like UPS and Federal Express, would also be licensed. All wine shipments would need to be prominently marked and require that someone least 21 years of age sign for the delivery. All state taxes and fees applicable to retail wine sales would also apply to direct shipment. “We’re not re-inventing the wheel here,” Hudson said. “These provisions are the hallmarks of how this law works everywhere else.”
Hudson’s bill requires an analysis on the law’s impact after going into effect and a four-year life span. “If we see this isn’t working, it dies of its own accord,” she said.
Delaware’s ban on direct shipping doesn’t just impact out-of-state wineries. The four wineries listed on the Delaware Wine and Ale Trail are also prohibited from shipping wine to Delaware customers. The House Economic Development/Banking/Insurance and Commerce Committee is expected to consider Rep. Hudson’s bill next month.
