Pennsylvania wineries are sour over a new law going into effect
today which bans the shipment of wine directly to in-state
customers.

The ruling – issued as an order by the Pennsylvania Liquor
Control Board and with a genesis from a state Supreme Court ruling
in May – would impact such local wineries as The Winery at Wilcox
and Flickerwood Winery in Kane.

Already, the Pennsylvania Wine Association is planning on
fighting the legislation, which would force customers to pick up a
wine order at the nearest state store and pay an 18 percent liquor
tax and $4.50 handling fee.

“I guess most of us in the winery business consider this the
first step in trying to eliminate us,” Ron Zampogna, the owner of
Flickerwood, said. “It’s our feeling that wholesalers and people
with a lot of money and influence are behind this.”

According to the Supreme Court ruling, if a state allows
shipments of wine within its borders, it’s unconstitutional for a
state to prohibit shipments into the state from other states.
Conversely, the wineries claim the PLCB is worried about its own
wine sales if the shipping market is opened up.

“The ban affects different wineries around the state to
different degrees, but on the short notice, this is a huge concern
to us,” Jenny Engle, executive director of the Pennsylvania Wine
Association said, adding the organization, along with winery
owners, held a demonstration Oct. 18 in Harrisburg. Engle added
other factions will also suffer from the ban, including wine
tasting and wine of the month clubs.

“A lot of our wineries have already ordered their holiday
supplies and prepared for that, not only inventory wise, but with
special packaging and promotions,” Engle said. “The holiday season
is a big time for our wineries.”

Engle said the association has filed for an injunction to
postpone the implementation of the legislation to Jan. 1.

“They stopped us from shipping right smack dab in the middle of
our best shipping time – the holidays,” Zampogna said. “I don’t
know what the answers are, but we need the support of our
customers. There’s a lot riding on it.”

Just how much a business profits depends on shipping the product
directly to their customers, and other factors, including if the
winery has any outlet stores, of which they can have a maximum of
five.

Separated less than 10 miles apart, The Winery at Wilcox has
three outlets and doesn’t rely heavily on out of store sales, while
officials at Flickerwood estimate the out of store sales are
anywhere between 10 to 15 percent.

The “farm wineries” – of which there are 106 statewide and
include The Winery at Wilcox and Flickerwood – produce less than
200,000 gallons of wine a year. Many produce less than 10,000
gallons annually.

“The shipping is not a terribly large portion of our business
here,” Jamie Williams, vice president of The Winery at Wilcox,
said. “It’s something that we never relied too heavily upon. Our
position is, where it is somewhat prohibitive of the legislators to
do, to prohibit us from in-state shipping, it is not the issue
we’re going to the mattress for.”

Williams said Pennsylvania is a “control state,” adding
out-of-state wineries can’t have an outlet store in a Pennsylvania
mall or at a separate location.

In other words, a major California winery has to sell its
product through the state liquor store.

Along those lines, Zampogna said more than 100 of the smaller
wineries also provide tourism for the state.

“It’s not just a matter of selling wine,” Zampogna said, adding
Flickerwood gives tours and tiny samples, as well as information on
local sights, attractions and businesses. The winery is also
involved in the community. “I know we have well over half a million
dollars invested in this business. We can’t afford to lose
that.”

Zampogna said he and his fellow winery associates have launched
a campaign in which they have written to their state
representatives and senators, in addition to Gov. Ed Rendell. They
are also encouraging customers to do the same.

He also said at this point of the season, wineries hire
additional seasonal help; Flickerwood’s employee population grows
to nearly 50 people.

For his part, state Rep. Martin Causer, R-Turtlepoint, said the
House Liquor Control Committee and Senate are currently working on
ways to remedy the situation.

“At the end of September they (committee) were holding
informational meetings on the issue,” Causer said. “It’s a big
issue. We recognize the economic impact on those that are involved.
I think a winery should be able to ship directly to the customer.
I’m hoping we can get legislation to address this.”

(Era Associate Editor Mike Schreiber contributed to this
report)