Will New Mexico Free the Grapes and Expand Direct to Consumer Wine Shipping?

Business Wire, Jan 28, 2008

NAPA, Calif. -- If Senate Bill 59 passes next week, New Mexico's wine lovers may want to raise a toast to the Committee on Corporations and Transportation, according to Free the Grapes!, the national consumer-winery grassroots coalition. (www.freethegrapes.org)

Senate Bill 59 would replace the state's outmoded 'reciprocal' direct shipping law - which limits consumers from purchasing their favorite wines - with language that allows wineries and retailers from any state to purchase a license, pay taxes, and ship limited amounts of wine to New Mexico consumers 21 year or older. The bill mirrors legislation working in a majority of U.S. states that has helped solve the wine direct shipping issue, a hot button since the U.S. Supreme Court ruled on the issue in May 2005.

Last year, a similar bill was introduced and promptly killed by special interests in the New Mexico wine wholesaler community, although similar bills have received in-state wholesaler support in Illinois and Colorado, to name two.

Senate Bill 59 is supported by the New Mexico Wine Growers Association even though the bill would theoretically open up the state's flourishing wine industry to greater competition. New Mexico consumers could purchase wine directly from any winery or retailer in the U.S. licensed by New Mexico to ship. "Any opposition to Senate Bill 59 is economic protectionism, pure and simple. Our winery members welcome the competition from other states," said Farid Himeur of Gruet Winery, a member of the NMWGA. "The actual experience in other states is very favorable - everyone wins with this legislation: the state, consumers and local wineries," he added.

There are now more than 5,000 wineries in the United States, at least one in each state. Since the U.S. Supreme Court ruled on direct shipping in May 2005, winery-to-consumer shipping has become legal in 35 states, which collectively represent 81% of wine consumption in the U.S. The model direct shipping bill allows licensed wineries and retailers to purchase a permit, pay taxes, mark boxes, and consent to the jurisdiction of the state, among other provisions. Free the Grapes! is a national consumer-winery grassroots coalition of more than 300,000 members and supports legal, regulated direct-to-consumer wine shipments.