Important Wine Sales Changes in VT and MD

Posted by Tom Wark on May 22, 2006

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It appears that both Maryland and Vermont have followed Washington State’s lead and passed laws that allow wineries outside the state to sell directly to retailers and restaurants in VT and MD.

This is a huge step that confirms the states’ acknowledgment that wine wholesalers are not necessary tools for getting wine to market but rather one tool that CAN be used to get the wine to market.

In the case of Maryland, however, the new law restricts winery’s that make more than 11,500 cases per year from participating in this direct-to-retail sales channel. This of course makes the Maryland law really a wholesaler protection act and begs the question, if, say, Gallo found it more cost effective to sell wine directly to Maryland retailers and restaurants themselves, rather than doing so via a middle man, why shouldn’t they be allowed to since a smaller winery is allowed to?

I predict that some day, down the road, wine wholesalers will be asked to demonstrate their value without substantial subsidizing of their business plan by the states.

More to come on this as I hear back from various officials in Vermont and Maryland.

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