OKLAHOMA CITY — A fear that Oklahoma wine shipping and distribution laws will continue to stifle growth is fermenting amongst winemakers in the state.

David Martin, owner of Deer Creek Vineyard near Edmond, Okla., believes the inability to ship wine to customers has limited his 2-year-old winery’s growth.

“I’m pretty maxed out already,” he said. “It’s a hindrance to what we can do.”

Oklahoma law does not allow wine to be shipped out of or shipped into the state unless through a wholesaler. One state legislator wants to look at this statute and make some changes so more consumers can wine and dine with a glass of Oklahoma vino.

Rep. Danny Morgan, D-Prague, said he is hoping to “take these barriers away from the wineries.” He said allowing wine shipments into and out of the state will bring more jobs to Oklahoma, allow more grapes to be grown in-state and will boost tourism.

He said he will propose legislation during the 2007 legislative session to help ease the barriers.

Gary Butler, president of the Oklahoma Grape Growers and Wine Makers Association, said he wants to see the law change.

“The consumers should really have that right to have wine sent to their residence,” he said.

Currently, customers can go to a winery, purchase wine, get a box from the winery and send the wine out themselves. But it is against the law for the winery to send out the wine.

Butler owns Summerside Vineyards and Winery in Vinita, Okla., and said he gets a lot of out-of-state tourists venturing into his facility. He said he is contacted often from customers hoping the winery will send some bottles their way, but his hands are tied.

A lawsuit in federal court challenging wine distribution in the state has caused many shippers to no longer ship Oklahoma wine at all, even if the consumer sends it. This concerns Martin.

“Now that there is no liquid carried on the plane, people can’t buy it (wine) and take it home with them. That’s just limiting our sales,” he said. Many people decline to pack the bottles in their checked luggage for fear of breakage, he said.

Oklahoma law only allows a person to transport one liter, which is just over one bottle of wine, into or out of the state because of taxes not paid on the liquor. Kurt Morgan, general counsel for Oklahoma’s Alcoholic Beverage Laws Enforcement Commission, said this is a law that is difficult to regulate.

The lawsuit brought on by three Oklahoma wholesalers against the alcoholic beverage commission contests that a 2000 distribution law is unconstitutional. The law, prior to 2000, said that all wine manufacturers must go through a wholesaler to get their products sold in a retail setting.

Voters approved a state question in 2000 allowing Oklahoma wineries to sell to restaurants and liquor stores directly.

Action Wholesale Liquors of Oklahoma City, Central Liquor of Oklahoma City and Jarboe Sales Company of Tulsa filed suit earlier this year against the alcoholic law enforcement agency, saying the 2000 law violated the Interstate Commerce Clause, said Robert McCampbell, lawyer for the three wholesale companies.

The clause says all states should be judged the same. In this case, the question arises relating to wineries in Oklahoma being the only companies able to sell directly to the retailer.

Butler and Martin both started their wineries because of the 2000 law and fear the outcome of the lawsuit.

“That would be a crippling blow if that lawsuit passed,” Martin said.

He began selling directly to liquor stores in June and the direct sales constitute about 10 to 15 percent of his business, which he plans to grow.

Jeanette Hane, owner of Woodland Park Vineyards and Winery in Stillwater, Okla., said the shipping regulations and the looming court decision don’t affect her business right now. The 1-year-old winery sells directly to customers touring the facility. She hopes to grow the business and try to market the product to eventually be carried in stores and restaurants, but for now says she will “just go with the flow.”

Martin said now he is just awaiting the decision on the lawsuit to figure out his destiny.

“Having the ability to control my own future (was) taken out of my hands and put into a court’s hands that’s not even in Oklahoma,” Martin said.

McCampbell said he did not want to discuss the ins and outs of how the wholesalers have been affected by the law until after the ruling. He said he has seen wholesalers depicted as being reluctant to sell Oklahoma wines to retail stores, but that is not the case. The wholesalers “would be delighted to sell Oklahoma wine,” he said.

Jaclyn Houghton is CNHI News Service Oklahoma reporter.

Source: Sapulpa Daily Herald

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