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Wine Law, Wineries and the Yellow Rose of Texas

Last week, I had the very good fortune of traveling to San Antonio Texas to attend Law Seminaryellow-rose-of-texas International’s Winery and Wine Law Distribution Conference. (You should know right off that I previously resided in Texas for 13 years but have long since moved from the state). While things had very much changed, the best of my memories of Texas still remain the same. I soon realized upon my arrival why it was that of all the places I’ve ever lived (KS, Mo., Oh, TX, NY, PA) I always enjoyed my time in Texas the most. There’s much to be said about “southern hospitality”. I was barely off the tarmac when I took note of how everyone in the airport was more than helpful to assist me in getting to my right destination.

Upon my arrival to the hotel, I quickly discovered that my hotel was conveniently located two blocks away from San Antonio’s famous River Walk and the Alamo.   Unable to resist grabbing some real authentic Texas Mex (hint hint Taco Bell), I quickly tossed my heels aside, donned my nikes and headed straight for the River Walk. There I found a quaint restaurant called The Original Mexican Restaurant.  I ordered my very favorite Tex Mex meal–cheese enchiladas, refried beans, spanish rice and guacamole.   Despite the fact I found myself over dressed and melting from the heat, my momentary discomfort was offset by an extremely attentive wait staff who were eager to please. The congenial waitstaff waited on me hand and foot while a trio of Mariachi singers enticed me to chip in for a song.   A tough negotiation later, we settled on the $5 dollar rendition of a serenade of the “Yellow Rose of Texas”. With a big smile on my face watching the passerby’s and tourists pausing to listen, I quickly emailed a 30 second iphone video of my personal serenade back home to my kids.  Predictably my children responded with giggles and text messages to each other saying “Mom’s down in Texas on a roll”. (Meanwhile I was momentarily kicking myself for at least not extending my visit another day longer). I enjoyed the rest of my evening and planned for my highly anticipated conference the next day.

Day 1 of the conference was everything I hoped it would be and more. I started my day putting a name with a face with conference planner Bonnie Clark of Law Seminars International. Bonnie and I had previously spoken on numerous occasions from different coasts (she’s in Seattle) with her assisting me with useful information about the conference and the industry players.  Arriving at the registration desk and formally identifying myself, there was Bonnie.   We were like two kids in a candy store. Bonnie and I smiled, hugged each other and delighted in the fact we were able to finally personally meet after many coast to coast emails and phone conversations.

Two hours into the morning session, I was convinced that  Day 1’s agenda was well worth the investment of time, resources and money. Program event co-chairs were Lou Bright, General Counsel of the Texas Alcoholic Commission, and Kimberly Frost, a very able regulation attorney at Jack Martin & Associates.    Attendees at the conference included not only attorneys with interest in wine law, but winery owners and operators as well. Lou proved to be the voice of authority as most everyone in the room seemed to know him. I found him to be very colorful, knowledgeable, and warm.   Lou Bright’s passion about the wine industry and his eagerness to help his regulatory clients through a very complex process was obvious.  The morning’s agenda included modules on Setting Up Business Partnerships, Employment Issues for the Wine Industry, Water Rights, Brands, Trademarks, Labels, Selling Wines Online, and Legislative Updates. Speakers arrived from Texas, California, Illinois and other parts of the country to educate the attendees on the latest hot topics and emerging trends in the industry.   It was great to actively participate in the back and forth exchange between regulatory leaders, winery owners and legal community participants with different points of view and perspectives.

By meal-time, things got even more rewarding as I was invited to join attendees, Ken Feagins, Esq. founder of Gaucho Wines, LLC and Haile do Valle Peixoto Director of Gaucho Wines. The three of us hit the road and ended up on a BBQ mission finding ourselves at the infamous County Line BBQ. (Again, now I know why I missed Texas). Ken, a resident of Oklahoma and Haile a resident from Montevideo-Uruguay were launching an import/export business specializing in wines from Uruguay. We engaged in a lively conversation about the permitting process in the context of the import export process. After our meal, we all agreed to stay in touch. Ken suggested we take pictures of ourselves on our iphones so that when we call, we’d have a face to put with the name. (I’ll remember that tech savvy tip for future reference).   By the end of Day 1, most all the attendees were commenting on how great the conference was going. (Kudos to LSI).

But the best was yet to come. A blind tasting was planned for the evening. Attendees were invited to bring a Texas wine to the tasting. While running out to buy a Texas wine (I bought a Peregrine Hill 2008 Cabernet Sauvignon), I wondered how much fun it would have been if a Pennsylvania wine could have been included in the tasting. Ken Feagins commented on how much he would have liked to have seen a Uruguay or Oklahoma wine in competition as well.   We were just a few of the attendees crossing interstate lines and therefore could not bring our state’s wines.

The Wine Tasting was great fun. Many of the winery owner attendees brought wines from their estates. We each were given a questionnaire to fill out quick facts and points of interest in the Texas Wine Industry. The winner would be announced the following day. Tables were set up across the room with various red and white varietals tucked nicely in brown bags next to plenty of food choices to clear our palettes and spit buckets nearby.  This proved to be a great opportunity to get acquainted with other attendees.  There were awesome stories and great tales being told by some of the attendees on how they made their entree into the winery business.   My favorite story came from Ronald F. Yates, owner of Yates Law Firm. He was a lawyer/winery owner and told his personal story of how he happened into a purchase of a seller -financed winery two years ago.

But the day would not be complete without my having met winery owners Alphonse A. Dotson and his wife Martha Dotson.  Mr. and Ms. Dotson are owners of the AVA Hill Country’s Certenberg Vineyards. To my surprise Mr. Dotson, a 6 foot 4 former professional football player and I soon discovered we had “Kansas City” in common.   I being born in Kansas City and he having signed with the Kansas City Chiefs, we chatted about our love for the infamous Ollie Gate’s famous Gates and Son BBQ chain restaurant.   Of course we got a good laugh out of the fact that he spent time with Mr. Gates, while I was tooling around in high school with Mr. Gate’s kids.

As a Day 2 speaker, Mr. Dotson spoke on the challenges of  Texas Agriculture, mother nature’s climate curve balls and how both impact the viability of Texas wineries and the wine industry.  Mr. Dotson shared  a very compelling story of a three days and three nights toil one easter weekend utilizing his entire water reserves to protect his vineyard from an unexpected freeze.  By late afternoon, our guest speakers were covering topics ranging from how to survive a TTB compliance Audit to Finding Money to Finance Your Winery. The day was not complete without Chicago Illinois Director Steve Gross of the Wine Institute covering the hot topics of Shipping Compliance and the State of the Nation.  Director Steve Gross and I later spent some time discussing the fact that Pennsylvania was still one of 18 states in the nation with no direct to consumer shipment laws and where he thought litigation and legislative actions on the issue currently stand.

Finally the day ended with the annoucement of the winners of the Wine Tasting.  That ended up being a tie between the only two attendees who took the time to write about the wines as opposed to drinking them.  Their prize of course was a bottle of Texas wine!

All in all, it was an action packed conference that fulfilled its every promise of providing up to date information from recognized experts in the field of wine law.  It was a vibrant and stimulating exchange of information that left me wanting more.   I met a lot of wonderful folks with whom I hope to forge long lasting business relationships in the future.

As I boarded my plane back to Philadelphia International, I reflected yet again on how happy I was to be in a position to have married my passions for wine and law.   It was hard to think of my experience as work.   And while I was happy to be returning home, I couldn’t help but noticed that I was still humming “The Yellow Rose of Texas” in my head.   So I turned on my iphone and watched those mariachi players once again, taking my Texas memories with me.

As for Pennsylvania winery and hospitality owners, I’m back in the saddle, locked and loaded with new information and emerging trends of interest to post that you may find useful to your winery, wine and hospitality based businesses.  Do stay tuned.

What Wine Or Hospitality Business Are You Creating? Forming the Sole Proprietorship

In my recent travels along the Pennsylvania wine trail, I met an entrepreneurial minded young lady who expressed an interest in forming a “wine-tasting business”.   We briefly explored her needtype of business formation to create the right business structure.   Thus, I thought I would  discuss the various business structures for those of you who are considering opening your own winery, restaurant, catering, event planning, bed and breakfast or hospitality business.  The type of business structure you choose is determinative of the personal liability and tax consequences you will face. You will need to consider the amount of control you wish to have as well as your business exposure to lawsuits.

There are advantages and disadvantages to each form of legal business structure.   The different types of business entities include: Sole Proprietorship, Partnership, Corporations, and Limited Liability Company. I will discuss the differences in these legal structures in a series of several posts.   As you consider starting your own wine or hospitality based business, think about how you want your business to be structured.   In today’s post, I will begin with the Sole Proprietorship.

Sole Proprietorships

The most simple of business structure is the sole proprietorship.   There are no multiple owners in this form of business structure.   The sole proprietorship is the easiest and least expensive business structure to operate.  In this type of business formation you are in sole control of the management of your business.  This is one of the advantages of operating as a sole proprietorship.   There are no organizing documents to be filed with the State.   First, name your business.   You should determine that the name you select is available for use and that you are entitled to use it.   Any sole proprietorship conducting business under a fictitious name (a name other than your own) must register this name with the Pennsylvania Department of State Corporation Bureau.   In the Commonwealth of Pennsylvania if you operate your sole proprietorship under a name other than your own, you are required to publish an advertisement in two newspapers in the county where your business is located. You must state that you have filed or intend to file a fictitious business name registration. While you are not required to do so, you may want to give consideration to registering your business name as a federal and or state trademark.

Every business subject to employment taxes is required to have a Federal Employer Identification Number (EIN) to identify the business with the Internal Revenue Service (IRS) and Social Security Administration (SSA).  You may apply for an EIN even if you have no employees.   This will make it easier for you to establish your business’s bank accounts.  You should preferably keep your business finances and record-keeping separate from your personal accounts.

While the sole proprietorship is the simplest form of legal structure, do not sleep on your obligations.   As a sole proprietor, you can personally be held liable for all financial obligations of the business.   This also includes any unlawful acts of your employees.  You ask, what does this mean?  It means that if you don’t pay your suppliers, fail to pay your creditors, or you lose a lawsuit, then the business (which is you) has to pay.    If you fail to pay, your creditors could legally come after your home or your possessions.

Tax filing for the sole proprietorship has easy reporting requirements.  Legally, the sole proprietor is not separate from the individual who owns it.   Business income or losses are reportable through the IRS Tax Form 1040, Schedule C with the sole proprietor’s personal income tax return.  Sole proprietorships avoid double taxation often associated with certain corporations.

You should ensure that you have all licenses or permits required to operate your business as most counties or cities require sole proprietorships to obtain local zoning, seller’s permits or business license and tax registration certificates.

In the next post of this series, we’ll consider the other forms of business structures.   What wine or hospitality business are you creating?

What Are You Doing With Those Eco-Friendly Corks?

With all the fan fare these days about “boxed wines”  I love the fact that there are still great arguments to be made on behalf of the cork.    The Huffington Post hosts author Jennifer Grayson, founding editor of theredwhiteandgreen.com. Ms. Grayson, an avid environmentalist has written a great article on the eco-friendliness of corks and why you may want to recycle them.  For more information read: Eco Etiquette: Can I Recycle Wine Corks?

Pennsylvania Wineries: Are You Getting Wine Lovers To Your Wine Or Your Wine To Your Wine Lovers?

When marketing your winery’s wine this harvest season, you may be creatively thinking of ways toPhiladelphia Festival 2
get wine lovers to your wine, or your wine to your wine lovers.   If your marketing efforts include the latter, you may wish to plan to host or participate in an event outside your winery’s usual business. That said, what are the requirements for a winery to participate in such an event?

In Pennsylvania, participating wineries in such events, should be properly licensed limited wineries in the Commonwealth of Pennsylvania.  Limited wineries are licensed by the Pennsylvania Liquor Control Board that may produce alcoholic ciders, wines and wine coolers (subject to certain exceptions).  Because the sale of alcohol without a license is illegal in Pennsylvania, limited winery event participants would need to obtain a Wine Exposition Permit. A limited winery licensee may apply for and obtain a Wine Exposition Permit from the Pennsylvania Liquor Control Board (PLCB) in order to participate in wine and food expositions off the licensed premises.

The permit may be issued to a licensed limited winery for expositions, not to exceed five consecutive days. The total number of days may not exceed 40 days in a calendar year.   The permit allows the holder to sell its alcoholic ciders and wine by the glass, bottle or case. Tasting samples of one fluid once or less may be provided for free or for sale.

The exposition may be held indoors or outdoors with the primary purpose of educating the attendees of the availability, nature and quality of the Pennsylvania product wines and alcoholic ciders in conjunction with suitable food displays, demonstrations and sales.   The exposition may include arts and crafts, musical activities, cultural and agricultural exhibits and similar activities. The permit fee is thirty dollars ($30.00) per day.

The next time you’re looking for ways to get your wine to your wine lovers, start with a Wine Exposition Permit and get your wine on!!

Does Drinking Red Wine Have A Protective Effect for Women With Breast Cancer?

healthReporting for Reuters Health News, author Michelle Rizzo wrote a “must read” article on a study of how women with breast cancer are being aided in their radiation treatments by consuming red wine. The article discusses the findings on how drinking red wine can prevent radiation induced toxicity. You may find the article an interesting read on the the numerous therapeutic benefits of red wine consumption for women with breast cancer. Read the full article here: Wine May Curb Toxic Effects of Radiation

Pennsylvania’s Brandywine Wine Trail: A Winery Lover’s Labor Day!

Labor Day weekend’s road trip found us on Pennsylvania’s Brandywine Wine Trail.  There are several wineries on the Brandywine Wine Trail.  Headed down the trail in the rolling hills of Chester County we had a truly special time at the “Summer Under the Stars Jazz Festival” at Chaddsford Winery.  We arrived just in time to catch the lively sounds of The Budesa Brothers jazz band. You could readily sense the warm camarderie of the Chaddsford Winery patrons as they happily tapped their feet, mingled about and experienced the wonderful tastings with catered cheeses, salads and meats.   Despite the fact that proprietors Eric and Lee Miller were on vacation, the event was left in capable hands with Winery Manager Gregory Kuhn at the helm.  An amicable guy, Gregory moved about with hospitality and winery staff in tow, all of whom under his leadership were moving about tending to the needs of the winery patrons.

The very charming tasting room was spacious, elegant and impressively filled with Chaddsford Winery’s award winning wines.  We were warmly greeted by alum Nicole Matregano (a graduate ofIMG_0103 Temple University’s Hospitality School) and festival worker Mary Croak. Nicole and Mary guided us to our wine selection, the Chaddsford’s 2008 Proprietors Reserve.  A very nice blend of Vidal Blanc, Seyval Blanc and Vignoles, the Proprietors Reserve paired wonderfully with our three cheese plate of pepper jack, white cheddar and blue cheese. A straw colored zesty citrus wine with hints of lemon, the Proprietors Reserve nicely complimented our cheese plate and thinly sliced roast beef.

Founded in 1982, and housed in a 17th Century Colonial Barn, the Chaddsford Winery sits in the midst of a very beautiful country setting full of distinct charm.   It is the oldest and largest of the wineries on the Brandywine Wine Trail.  On the 30 acre estate vineyard, Winemaker Eric Miller has produced award winning wines.  We took note of the fact that the winery is winner of eight gold medals and three silver medals in the 2009 PWA Pennsylvania Wine Competition.   Chaddsford Winery holds multiple awards in international wine competitions as well.

Winery lovers may find it a real treat this harvest season to experience the good food, good wine and good company should you make a stop at Chaddsford Winery on the Brandywine Wine Trail.

Pennsylvania’s Bucks County Wine Trail: You Heard It Through The Grapevine!

IMG_0081Pennsylvania’s Commonwealth is host to over 100 hundred wineries, eight of which are on the Bucks County Wine Trail. This past weekend, my family members and I hit the road visiting Buckingham Valley Vineyards. It was a fun and delightful adventure for a laid back saturday afternoon.  Let me tell you…there are some things in life that should not be kept a secret.  This is one of them.

Buckingham Valley Vineyards.

Located at 1521 Route 413 in Buckingham, Pa, the winery counts itself among the largest of Pennsylvania’s 100 wineries.  What a warm reception we received upon arrival.  While pausing to take a photo in front of the winery entrance, owner Jerry Forest rode out on his tractor to see if we were damsels in distress in need of assistance.  I kindly introduced myself to Jerry and we exchanged pleasant niceties.

As we stood out in the vineyard, it was hard not to look in Jerry’s eyes and not see his passion and love for the vines.  While I was admiring the winery’s outdoor sculpture exhibit Jerry proceeded to tell me a little about his history.  Believe it or not, Jerry built the winery from a pipe dream in a dorm room back in the 50‘s.  I learned Jerry is a graduate of the University of Pennsylvania’s Wharton School of Business.  It doesn’t take long to see that Jerry indeed knows his business.   As we moved towards the tasting room, Jerry and I chatted about his forthcoming plans for this week’s harvest.  Jerry cautioned me that “things were going to get pretty noisy fast” around those parts as the loud machinery would soon be rolled in the upcoming week.

At the tasting room, we were warmly greeted by Buckingham Valley Vineyard’s tasting guides Mary Louise Zilli and Courtney Forsberg.  With warm smiles and welcoming hearts, Mary Louse and Courtney introduced us to the wide range of Buckingham’s varietals for consideration as a part of our tasting experience.   Upon inquiry about our possible selections, it was clear both these ladies were at the top their game.  They made us feel right at home while guiding us through our choices. The tasting room was a very comfortable space, both open and inviting.  It was filled with neat gift items including hats, t-shirts, and Buckingham Valley Vineyard memorabilia.  We found it very relaxing as we browsed through the items while enjoying our tasting experience on a lazy laid back Saturday afternoon.

We chose three wines to taste during the visit.  Our white wine selections included a  premium dry Pinot Gris, and a slightly sweet aromatic Riesling.  We also selected the oak aged dry Chambourcin, a full bodied red. You can taste Jerry’s 30 years of experience in the wines as we found them to be smooth, lively and very well balanced.  Others may have known that too, as the tasting room rapidly filled up with a bachelorette party of 15 women donning matching t-shirts (I will censor myself on what those shirts read) on behalf of a bride to be.   Kindly we extended our thanks, said our goodbye’s, and left Buckingham Valley Vineyards in the hands of the bride to be and other guests   As we look back on the day, we’re left with fond memories of Buckingham Valley Vineyards, a family centric business with Jerry and Kathy Forest at the helm, along with sons Joe, Kevin and Chris.

The next time your family and friends are looking to experience a fun-filled Saturday afternoon adventure,…take them to Buckingham Valley Vineyards on the Bucks County Pennsylvania Wine Trail. When your friends and family ask you where you discovered this wonderful winery, tell them…You heard it through the grapevine!