I contacted Delegate Chris Saxman one of the legislators responsible for the new wine distribution bill and asked him some questions based on the articles I have read thus far. I am also attempting to get in touch with a representative from the distributors to get their take on the bill.

The questions and answers follow:

1. How does this legislation differ from the bill that was tabled last year? Will those changes be enough to allow this bill to come to the floor?
   
   Last year's bill had a cap on the size of the winery; This year's has a cap on the amount of distribution, allowing all wineries some self distribution. We can only hope there is the political will to get this bill out of the General Laws ABC subcommittee and committee to a floor vote.
   


2. How do you answer criticisms from alcohol distributors that this law will disrupt the three-tier distribution system that is in place? In line with that, do you feel that Virginia's wineries are being given special consideration in relation to micro-breweries and other alcohol producers?
   
   This bill supports and compliments the three tier system. Wineries that choose not to self distribute or that distribute more than 3,000 cases annually will have to use the three tier system. Recall that farm wineries had been self distributing for 25 years with no negative impact on the three tier system.
   
   I am unaware that the micro brewers have suffered the impact the wineries have and don't know if they have the difficulty that small wineries have finding wholesalers willing to distribute their products. Some have had family members create wholesalers to sell their products. This solution has been suggested to the wineries by the wholesalers, but is extremely expensive and complicated.
   


3. One point that is not clear from the news articles I have read: Does the 3,000 case cap apply only to wine distributed in the state of Virginia, or does it apply to total number of cases produced by a winery?
   
   The 3,000 case limit applies to the amount that wineries, in or out of state, can self distribute. Any winery of any size we be able, we hope, to self distribute up to that amount in Virginia
   


4. Senator Watkins said the point of the bill was to nurture these wineries until they reach a certain size. Is that size defined strictly by case distribution, or are there other factors in the bill?
   
   In practice, most Virginia wineries hire an independent wholesaler by the time they produce 6,000 to 7,000 cases per year. If they are making that much, they are selling about 3,000 cases in their tasting room and at festivals, and 3,000 cases by self distribution. Economies of scale suggest that they can afford a wholesaler at that level and that a wholesaler will be interested in assuming responsibility for the brand and market demand they have created. Also, the usually don't have the manpower/vehicles to transport much more than 3,000 cases of wine per year.
   


5. Finally, there will undoubtedly be a lot of support for this bill from readers of this site, is there anything they can do to help push this legislation in the Virginia House and Senate?
   
   Call your legislators and ask them to support the farm wineries.