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Pennsylvania Wine Shipment Legislation Gains Momentum

On March 28, the Pennsylvania State Senate unanimously passed 48-0, Senate Bill 790 which would allow consumers to have domestic wines from U.S. wineries shipped directly to their homes in the state. Under the legislation, consumers would be allowed to purchase by phone, mail or internet as many as 24 domestic wines per month. However, for those residents interested in purchasing imported wines, Pennsylvania residents would still be required to continue to obtain imported wine purchases from the 620 state owned/controlled liquor stores.

Under the bill, consumers would be required to verify their age and sign for shipments. Wineries would be required to collect taxes prior to shipping and to pay a $100 state registration fee annually along with reporting requirements to the Pennsylvania Liquor Control Board.

Pennsylvania is one of 14 states that restricts the shipping of wine to its residents. The State’s ban on direct shipment of wine has been a long standing concern integral to the wider debate on the future of the Pennsylvania’s state-controlled liquor store system. While proponents of the bill believe the legislation offers Pennsylvania residents a bit more liquor freedom while bolstering state revenue, Senator Lawrence M. Farnese Jr. D-Philadelphia, a co-sponsor of the bill voiced his disappointment arguing that late surfacing amendments to the bill shuts out “90 percent of the world’s wine” from French, German, Australian and other imports thus “giving the people of Pennsylvania less that what they should be getting”.

The Pennsylvania Liquor Control Board is the largest purchased of wine and spirits in the United States with sales topping $1.9 billion.

Calling All Pennsylvania Winemaker’s With No Dirt

Do you happen to be a Pennsylvania Winemaker with no vineyard? No UrbanWineryProblem. Perhaps your real calling is that you’re a city dwelling vintner. Besides, the grapes only care about where they are grown and not where they are crushed. With that in mind, have you considered that maybe there is an Urban Winery in your future? If so, your time is now. Advances in both technology and transport are on your side. Today, there is a growing recognition that you really don’t have to have the dirt to start your own Urban Winery. Instead, your grapes can be grown in a remote location with you transporting them to your urban facility for crushing, fermenting, and aging.

Typically when we think of wineries, most of us think of expansive vineyards overlooking large gardens with a view. The Urban Winery is a growing yet different phenomenon. As the winemaker you can locate your winemaking production facility in an urban setting within a city rather than the traditional rural setting typically in close proximity to the nearby vineyard.

The upside of course is that you can attract all of today’s millennial’s who enjoy that frequented city dwelling lifestyle. This concept has all kinds of possibilities. Conceptually you’d be bringing the consumer intimately closer to the winemaking experience in a much more meaningful way, far beyond the wine bar experience. Your Urban Winery can be “the” gathering spot for the neighborhood locals who drop in to sip and take a few bottles of Pennsylvania wine home.

Urban wineries are rapidly cropping up across America. You could now find them in New York, California, Ohio, Maryland and Washington State to name a few.

So, if you’re ready to grab hold of those urban dwellers and are ready to provide them with an authentic winery experience– perhaps there is a Urban Winery in your future. Go for it Pennsylvania Winemakers!

How To Ensure Your Wine and Hospitality Business Success In 2012

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If you’re preparing to open your own winery or hospitality business you have no doubt heard the warnings “its a jungle out there” or that “most businesses fail within the first five years”.

Whether your winery, restaurant, or hospitality business success or fails, the one sure truth is that you’ll be guaranteed to have some challenging times. Building a successful wine or hospitality business can be a true roller coaster ride. New entrepreneurs often underestimate the difficulty and pain that comes with starting a new business. The responsibilities are great. The time pressures are demanding. The financial investment often comes with significant personal costs.

The good news is that if you have fire in your belly, building your own business into a success will give you a personal sense of satisfaction and joy. It feels good. Thus if you’re starting a new winery, restaurant, or hospitality business in 2012, it is essential that you do it right. Here are just a few good tips:

You should consider preparing an effective business plan.
Know your market.
Watch you cash flow.
Deliver a good product or service.
Implement the right legal protections.
Listen to your customers.
Participate in your industry’s trade organizations.
Hire a good attorney who understands your business.

Arming yourself early on at the inception of building your new winery or hospitality business will go a long way to helping your business grow and become a success. And, by all means, “get in where you fit in”

An End To Swipe And Blow For Pennsylvania Wine Consumers

The Pennsylvania Liquor Control Board has ended its ill-fated wine vending program after a year’s experiment with statewide grocery stores. The wine kiosks located at 21 stores throughout the state required customers to swipe their ID, blow into a breathalyzer and look into a security camera to buy their wine. The program came under tough scrutiny with customer complaints, mechanical problems and lagging sales. This week, the PLCB concluded the wine kiosks program after the manufacturer Simple Brands LLC of Montgomery County defaulted on a payment of more than $1 million per Joe Conti, CEO of the PLCB. The end of the kiosks program comes during a time where House Majority Leader Republican plcb_kioskMike Turzai has introduced a bill to privatize the state’s liquor system proposing the sale of liquor licenses wherein supermarkets would be able to purchase licenses and sell wine to its customers. Alternatively, the PLCB initially envisioned the wine kiosks program as a way to implement modernization into the state’s liquor control system. Meanwhile as the turf battles continue in the industry, some of us are still looking for ways to “eat local” and “drink local”. Now what say you?

Is Your Pennsylvania Wine Ready To Take Flight?

Does your Pennsylvania wine have a distinct taste and flavor that will come through if sipped at 30,000 feet? Is so, the airline industry may be the place for your wine to take flight. It appears that U.S. airlines have taken note that passengers keep coming back to their airline based on the wine and champagne served in the cabin. As such, Sommeliers are now working with the airlines to choose which wines will be served. Perhaps your Pennsylvania is ready to take flight. For more on this subject take a look at the video below:

Here’s What Every Pennsylvania Liquor And Limited Winery Licensee Should Know

Pennsylvania’s Governor Corbett recently signed into law Act 11 (HB 148) which has made numerous changes to various sections of the Liquor Code. The Act made changes include adding a definition of “happy hour” and permitting retail liquor licensees to hold happy hour pricing up to four (4) hours per day and up to fourteen (14) hours per week. “Happy hour” is now defined as “the period of time during which a licensee discounts alcoholic beverages”. While the maximum period remains fourteen (14 hours per week, licensees will be able to adjust the length of their daily happy hours to take advantage of slow/busy days as long as the maximum limits are not exceeded. The hours need not be consecutive, but prohibitions against giving discounts between midnight and closing remains intact.

Three large changes have occurred for Pennsylvania’s Limited Wineries.

1) Effective immediately a limited winery can sell food for consumption on or off the main licensed premises and at its additional Board approved locations. It can also now sell wine by the glass at both its main premises and its satellite locations.

2) Effective immediately, a limited winery is now allowed to sell its alcoholic products from 9:00 am to 11:00 p.m, extending from the old 9:00 p.m. closing. The old law regarding expanded hours for the holiday period has been deleted.

3) Effective July 28, 2011, a limited winery will be able to apply for a “farmers market permit” for the sale of its product at more than one (1) famers market at any given time. The permit fee is $250.00 annually and there is no limit as to the number of days it can be used in that year. The limited winery can sell by the bottle or in case lots. All sales must occur during the standard operating hours of the farmers market. Samples must be free and cannot exceed one (1) fluid ounce per brand.

For more on the new changes to the liquor laws read: What Licensees Should Know About Act 11 of 2011.

Pennsylvania’s Privatization Battle For The State’s Liquor Stores Continue

State Rep. John Payne, R-Derry Twp plans to introduce a bill to allow the the state’s 1200 beer distributors to apply for a free permit to carry wine and spirits at your local beer distributor. Permits to wholesalers would cost $50 million. Payne’s proposal in the debate on privatization of the state’s liquor stores would leave the Pennsylvania Wine and Spirit stores intact. For more on the debate read: Pennlive.com: Wine and Spirits At Beer Distributors?

Pennsylvania’s Liquor Control Board’s Advocacy For Modernization Continues

The Pennsylvania Liquor Control Board’s Chief Executive Joseph Conti appeared before the Pennsylvania Senate Law and Justice Committee this week to address its plan to modernize the Board’s operations. Ten proposals were offered to law makers as an effort to stave off privatization of the state’s Wine and Spirit stores. For more read: Pennsylvania Independent’s: Pennsylvania Liquor Control Board Proposes Ten Ideas For Modernization

Beer, Wine & Spirit Producers Fight Back Petitioning Congress To Reject HR1161.

The wine wars continue.

Members of the Beer, Wine & Spirit Industry joined together recently to urge members of Congress to oppose the “Community Alchohol Regulatory Effectiveness” Act of 2011 (CARE), the legislation (H.R. 1161) sponsored by the wholesellers tier of the Alcohol Beverage Industry.

Wine America, The Brewers Association, Distilled Spirits Council of the United States, Wine Institute, Beer Institute, and the National Association of Beverage Importers strongly oppose H.R 1161. In their recent letter to Congress, the producers stated “We strongly oppose H.R. 1161, which like its predecessor in the last Congress, is unnecessary. Its provisions would harm consumers and the marketplace, limit consumer choice, and allow states to enact protectionist and anti-competitive laws. It this bill becomes law, it would make it much harder for brewers, vintners, distillers, and importors to get their products to market.”

To view the entire letter, read here.

Pennsylvania Liquor Control Board Proposes To Modernize It’s System Of Wine and Liquor Sales

Pennsylvania Liquor Control Board officials advocated modernization changes today as it faces the threat of privatization by Gov. Tom Corbett and others to privatize the system.

The changes were discussed today at a state Senate appropriations hearing. The proposed changes include:

–Increasing Sunday store closing hours from noon until (currently 5pm) 7 or 8 pm

–Erasing the state’s current limit of only allowing 25% of the stores open on Sunday

–Allowing direct shipment of wine/liquor from out of state online retailers to go direct
to Pennsylvania households versus the current practice of state store product pickup.

–Varying the standard 30% markup on all wine and spirits sold in the stores.

For more on this read: LCB Proposes Changes To Stave Off Privatization