While many state activists and legislators are engaged in long-standing legislative dog fights to privatize wine distribution, I found this article to pose an interesting question as to whether or not privatization of the liquor industry will necessarily yield better outcomes. For a different perspective, read after the jump Tyler Colman’s: Will the Recession Liberalize Wine Laws?
Local wineries are fighting back against the proposed federal legislation , H.R. 5034. This legislation is being backed by the National Beer Association. The legislation as proposed gives individual states the power to regulate alcohol sales and distribution. For a good read on this pending legislation, read Chris Rauber’s Wine Wars.
Do you know about HR 5034? Learn more on how to “Free The Grapes”.
Pennsylvania lawmaker Mike Turzai, R-Allegheny, introduced legislation designed to create privitization of the wholesale and retail operations of the Pennsylvania Liquor Control Board. Turzai said “Government should not be in the business of selling alcohol”. He believes Pennsylvania’s current system results in higher prices and less selection for consumers. For more information read: Turzai Introduces Legislation to Privatize Sale of Wine and Spirits.
Here’s an interesting article on how a not so well established Napa winery took matters in its own hands to sell its wine in the New York and New Jersey markets when a big distributor failed to take him on as a client. For more information read: Local Winery Bypasses Distributors in New York and New Jersey.
The New Jersey State Senate has recently approved legislation allowing New Jersey residents to receive direct shipments of wine. If this law is enacted, New Jersey would join thirty-five other states that currently have legislation that allow direct wine shipment. For more information read: N.J. Gets Closer To Allowing Direct Wine Shipments With Senate Approval.
Unfortunately Chile’s wine industry has not escaped the devastating effects of this week’s earthquake. As pointed out in today’s Wine Spectator, millions of liters have been lost resulting in huge damages to the industry. For more information read: Powerful Earthquake Rocks Chilean Wine Industry.
Recently I took an unforeseen hiatus from posting to this blog to tend to the needs of my oldest child
who was recently injured this January in an automobile accident at the hands of a drunk driver. Like most of the mothers of MADD, I too experienced the anguish that comes with that dreadful night in the emergency room, waiting 40 minutes for a simple word from physicians in what felt like a lifetime of silence as to whether my child was to live or die, while the drunk driver walked away with little more than a scratch.
It’s horrible to be in a position wherein despite the fact my daughter suffered a brain hemorrhage, short term memory loss, a fractured skull, broken nose, broken ribs, loss of teeth, and deep facial lacerations, I was relieved to hear the words “she’s on a ventilator, but is expected live”. Two surgeries later, our family is blessed to have her home and recuperating. While her total healing process is expected to take 12-18 months, there are huge economic and emotional losses to recover from as well.
After having lived through this dreadful experience, spending many nights at her hospital bedside and wondering what words of comfort to offer her children who looked to me for words of hope, I am compelled now to post for the benefit of my winery, restaurant, and hospitality business readers how you may protect your business and life’s work from the risks and hazards that come from dealing with visibly intoxicated persons who senselessly create liability for your business. If you do not want to be in a position of having to “lawyer up”, let’s now visit what is important for you to know.
The Dram Shop Law in Pennsylvania makes it unlawful to serve liquor, malt, or brewed beverages to “any person visibly intoxicated”. Dram Shop is third party liability law which makes it possible for 2nd and 3rd parties to sue any person for a death, injury, or property damage. Establishments licensed to sell and serve alcohol are commonly referred to as “dram shops”. These establishments or “dram shops” are liable to third parties for damages inflicted by customers of the establishment, if the customer was sold, furnished or given liquor by the establishment when the customer was visibly intoxicated when served. Selling alcohol to a minor, selling to a visibly intoxicated person, selling alcohol after hours, or selling without a liquor license is unlawful in Pennsylvania. This Dram Shop statute is designed to protect the public at large as well as the person who consumes the alcohol.
If you’re a winery owner on a wine trail for example, and a VIP or “visibly intoxicated person” comes to your winery as well as several other wineries on the trail, and is involved in an automobile accident resulting in an injury to a third party, you and your business are now in the “hot seat”. The same is true if you are a restaurant or bar owner serving bar-hopping patrons who later leave in a drunken state, and kill themselves and or others. Because your establishment can be held liable for injuries it is in your best interest to be diligent in ensuring that intoxicated persons are not served more alcohol. In order for liability to attach, you must have actual knowledge or notice of a customer’s condition before liability is imposed. Thus its important to have your servers trained in alcohol awareness and to teach your staff the obvious signs of intoxication such as staggering, slurring words, loud speech, drinking too fast, etc. and even the more subtle signs that the untrained eye might not see. This kind of evidence helps to dispel the implication that a patron was served while visibly intoxicated.
The Pennsylvania Liquor Control Board created the Responsible Alcohol Management Program (RAMP) to help liquor licensees and their employees to serve alcohol responsibly. Ramp offers advice to restaurants, winery owners, hotels, clubs, distributors and special permit occasion holders to learn to avoid unnecessary liability and to detect signs of impairment and intoxication.
So as to avoid having your winery or hospitality business “lawyer up” in the face of such dreadful outcomes at the hands of intoxicated persons, protect your business and your life’s work by being vigilant in the sale of alcohol and the persons you hold accountable for seeing that your patrons drinking responsibly.
This week I had the pleasure of being invited by Dominic Strohlein, owner of Big Creek Winery to be the guest speaker to the membership of Pennsylvania’s Lehigh Valley Wine 
Trail Association. It was a wonderful time starting the new year in their company as they hosted their first of many membership meetings held annually throughout the year.
We used our time together having a very healthy exchange discussing Pennsylvania’s Dram Shop Law. We discussed issues of premise liability and its impact on winery and vineyard owners. In Pennsylvania, the laws that govern servers of alcohol, if violated can result in very costly lawsuits. Thus, the manner in which each winery owner can best protect themselves in various environments including the tasting room, wine festivals, wine events, tour group events and commercial carriers can be very complex waters to navigate. Too, we considered how managing potential risks and hazards can be minimized with proper training and knowledge in order to avoid unlawful acts of alcohol service to “minors” or “any person visibly intoxicated”.
The Lehigh Valley Wine Trail Association is home to nine family owned vineyards and wineries located in eastern Pennsylvania. Designated an American Viticultural Area (AVA) in 2008, Lehigh Valley is Pennsylvania’s fasting growing wine region in the state.
The Lehigh Valley Winemakers include:
Amore Vineyards & Winery
Franklin Hills Vineyard
Sorrenti’s Cherry Valley Vineyards
Big Creek Vineyard and Winery
Galen Glen Vineyard and Winery
Blue Mountain Vineyards & Cellars, Ltd.
Pinnacle Ridge
Clover Hills Vineyards & Winery
Vynecrest Vineyards & Winery
I found the Lehigh Valley Wine Trail Association membership to be very proactive in their efforts to keep abreast of new trends and changes in the law so as to conduct their winery and vineyard operations as responsible licensees in their community.
Pennsylvania is home to 11 wine trails throughout the state. This year, as your wine trail association gathers to meet and exchange ideas, you too may want to start your year anew considering how best to protect your winery operations as responsible licensees in your community.
As you usher in your new year and embark upon your Pennsylvania wine country travels, perhaps you’ll head out to eastern Pennsylvania and check out the wineries on the Lehigh Valley Wine Trail. I’m certain you’ll have a wonderful wine experience.
Thank you again Lehigh Valley Wine Trail Association for the opportunity to meet and speak with you.
Happy New Year to you all!
You’ve likely heard the saying “a rose by any other name is still a rose”. Well in a way that can be true in the
business world as well. Especially if you are considering giving your business a “fictitious” name.
Before establishing your winery, wine or hospitality based business, you will want to consider what name to use when forming your new Corporation or Limited Liability Company. While many business owners choose to operate their business under the name they put in their state filed Articles of Incorporation, you may choose for marketing purposes to operate your corporate entity under a name that’s different from the formal name listed in your Articles of Incorporation. Perhaps you have a catchy name in mind for marketing purposes. Or your own name is too long or not savvy enough for purposes of building your brand. If so, consider a “fictitious business name”.
For example, your may be planning to operate a wine event planning business under the name “John Rose Wine Events, LLC and subsequently plan to do business under that name. Alternatively, some business owners like to operate their corporations under a name that’s different from their individual name or formal legal entity name identified in their Articles of Incorporation. This is what is known as a “fictitious business name” or “dba” doing business as name.
For marketing purposes you may prefer to identify your business as “My Wine Sommelier”. Thus, you might alternatively establish your business name as “John Rose Wine Events, LLC, dba My Wine Sommelier.” You could then market your business as “My Wine Sommelier”.
In order to do so, most states require your corporate entity to file a “fictitious” or “assumed” business name and pay a fee. This legal filing allows creditors, customers, and vendors to know that your business operates under a “fictitious name” yet they are still able to identify you as the business owner. In order to protect your chosen name and establish exclusivity, you may consider registering your chosen name as a trademark.
So now, can a rose by any other name still be a rose? Well yes it can. Consider a “fictitious business” or “dba” name and you too could be the next “My Wine Sommelier”.
