Direct Shipping Bill Permit Fee Could Impact Small Wineries

A bill now on its way to the Governor’s desk allowing wine to be shipped directly to consumers, includes a permit fee that could impact smaller wineries, according to Ray Brasfield, president of the Maryland Winery Association and owner of Cygnus Wine Cellars in Manchester.

The original House and Senate bills have passed with amended language. They now allow only wineries to ship direct to consumers, and have a $200.00 permit fee.

“As wineries, of course we are happy that some form of direct-to-consumer shipping looks to be near a reality,” said Brasfield. “However, the sales required to make up for the $200.00 permit fee will be beyond the expectations of all but a few wineries. The norm for permit fees in most states is $100.00, and for California it is $10.00.”

The passage bill into law will make shipping wine to customers in Maryland legal for the first time since 1933.

 Thirty-seven states or 75 percent of the United States and the District of Columbia allow adult consumers to have wine mailed directly to their homes. 

The system in place monitors the sale of alcoholic products through a system in which wine is shipped first to a wholesaler in Maryland, which sells products to a distributor who then transports the wine to retailers.

The process was put in place to keep alcohol out of the hands of minors, but for local wineries these are lost sales. 

While the bill is through the House and Senate, Brasfield said he’s still leery of the results.  

“There is still time for someone to try and mess with the bills before they get to the Governor's desk for signature. It’s too early to celebrate, and never too late to be cautious. This is Annapolis, after all.”