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Legislature approves new rules for direct wine sales

   Local winery owners are celebrating a change in Oregon law approved by the Legislature shortly before the close of this year’s session, streamlining the rules for direct-to-consumer sales.
   House Bill 2171, signed into law last week, establishes a “direct permit shipping” system for Oregon wineries, allowing them (and other vendors licensed by the Oregon Liquor Control Commission) to sell directly to consumers in other states.
   Previously, all wine sales had to pass through an authorized distributor, and interstate sales were only possible through a “reciprocity agreement” between Oregon and that of another state, allowing two-way shipping privileges. However, a 2005 U.S. Supreme Court case found that such reciprocity agreements were in violation of the Interstate Commerce Clause of the Constitution.
   Instead, wineries in other states must now secure a shipping permit from the OLCC, at a cost of $50 per year, allowing them to send up to two cases of wine per month per customer.
   For interstate sales, Oregon wineries must obtain equivalent permits from the destination state (at a price set by that state’s legislature) and pay any applicable sales tax. Packages must be clearly labeled and signed for by a recipient age 21 or older at the time of delivery.
   Direct-to-consumer sales are a rapidly-growing segment of the wine industry, according to research results from wine marketing group VinterActive.
   Based on their annual survey of more than 3,500 wineries nationwide, VinterActive reported that wine club, Internet and phone or mail orders increased 58 percent at U.S. wineries in 2006 while tasting room and event sales fell 18 percent, bringing the 2006 total of consumer direct sales to $2.4 billion, approximately 10 percent of that year’s total wine sales across the nation.

From July 18, 2007, Newberg Graphic
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