The wholesalers in Maryland wanted to have all local wines sold to them. The
was based on a suit and Supreme Court ruling on shipping, The MD Comptroller
took the wholesaler's side. At the end a public & press out cry got the
wholesalers to back down


May 4, 2006





To: Senator Thomas Middletown

Delegate Virginia Claggett



Subject: Kudos



On behalf of the supporters of Maryland wineries. I thank you for keeping
them in business.



I began including Maryland wines in courses I taught from 1983-2000, when I
retired. I sold wines for 3 Maryland wineries as well as some in
Pennsylvania and Virginia.



As you know Virginia is completely in support of their wineries. While
attendees at a Virginia Wine Festival have unlimited access to the number
and quantity of wines, in the Free State we are limited to 10 ounces of wine
per person and subject to examination by local and State police. There have
been no accidents in either state after a wine festival.



The friendlier attitude by the Commonwealth has resulted in the growth and
Popularity of Virginia wines. While Virginia has its share of small
wineries, there are several wineries owned by out of state interests and
have enough capital to promote their wine. That's why forcing a Maryland
winery to sell through a disinterested wholesaler was an effort to punish
those wineries that supported the 2000 direct shipping bill.



The 2000 direct shipping law needed two tries. In 1999 the Comptroller's
office prepared instructions for consumers that were as complicated as Part
D of Medicare. Advocates of direct shipping and Senator Harris revised the
shipping law in 2000. Although the revised law made it easier for consumers,
the wineries had a multipage form to fill out with complete financial
information. Many wineries thought potential orders too small to spend
several days in filling out Dr. Ehart's masterpiece. To compound further
revisions, several legislators were challenged by members of the liquor
industry.



I suggest you have your staff's monitor the implementing instructions
prepared by the Comptrollers Office with input from wholesalers and retail
organizations to insure neither in state or out of state wineries are given
unneeded instructions that would be in excess of any requirements for
wholesalers for retail sales.



As I was employed in retail and managed the fine wine sales for a wholesaler
before I became a broker, I know and respect many wholesalers and understand
the pressures put on them to maintain the 3-tier system by parent
corporations. Nonetheless, trying to put small wineries out of business was
pure greed and a disservice to consumers and most retailers. Almost 20 years
ago, a leading winery, Byrd in Myersville was forced to close because a
developer with ties to Byrd's mortgagee wanted the land. Very few wines on
the East Coast were as good as the 1980 and 1982 Byrd Cabernet Sauvignon. I
suspect some of those who lobbied on behalf of the wholesalers knew
developers who would love to own land as attractive as Boordy or Catoctin

at fire sale prices.



It takes a good 10 years for young vines to producer world-class wine. There
are several vineyards that are now producing competitive wines that compare
with many wines from the left coast. There are at least 4 winemakers that
would shine in California, France or Italy even though they are self taught.



What you both did in defense of the wineries is worthy of a long toast.



Joe Rosenberg