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68 °F Forecast | Road Cams Tuesday, May 24, 2005 Today's News | Shop Our Valley | Tempo | Health | Community | Home Delivery | Contact Us SECTIONS Home Page Local News Sports Business Obituaries Life Opinion Tempo AP News Weather Classified Archives Site Map SPECIAL SECTIONS Since We Asked Outdoor Journal Menu Guide How To Guide Health Biz Connection Readers' Choice Real Estate Showcase Real Estate Guide Joy Magazine Homelife Magazine Wedding Guide Passport to the Rogue Valley SHOP OUR VALLEY AutoFinder HomeFinder JobFinder Classified Place an ad TOP JOBS EXTRA Ashland News NIE Personals Movie Times TV Times E The People Volunteer Moving here? eSouthernOregon CUSTOMER SERVICE FAQ's Advertise with us Home Delivery Employment Contact Us Media Kit Oregon Road Conditions & Cams Email Story to a Friend May 17, 2005 Michael Donovan, marketing and sales director for Roxy Ann Vineyards, displays a wine shipping carton. Mail Tribune / Roy Musitelli Wine ruling buoys vintners The U.S. Supreme Court paves the way for direct buying of vintages from out-of-state wineries By GREG STILES Mail Tribune The news reverberated through the Rogue and Applegate valleys Monday, home to a growing number of small vineyards: The U.S. Supreme Court ruled 5-4, overturning Michigan and New York laws prohibiting direct purchases of wine from out-of-state vineyards. States can no longer arbitrarily deny their residents access to out-of-state wine via the Internet or over the phone, opening a much broader market for small vineyards that can more vigorously promote lucrative "wine clubs." "It’s tremendous news and will likely be a boon to smaller wineries," said Michael Donovan, Roxy Ann Vineyard’s marketing and sales director. "It’s like the floodgates are open to ship everywhere without restriction. We still have to comply with individual state rules, but it certainly opens the market to us." Laws established after prohibition allowed states to determine whether wine could be shipped from other states. Customers visiting small Oregon wineries interested in a particular vintage were told it would be illegal to ship the product directly to their homes if they lived out of state. The now-outlawed restrictions were encouraged by the Wine & Spirits Wholesalers of America, which lobbies for liquor distributors that control 90 percent of the country’s wholesale liquor sales, according to WSWA’s Web site. WSWA argues that careful distribution of liquor is necessary to prevent its sale to minors and regulate product purity, as well as who is buying and selling alcohol. Advertisement But the Supreme Court said the Michigan and New York bans are discriminatory and anti-competitive. "We were expecting something like this," says Mark Wisnovsky of Valley View Winery. "During the oral arguments (the justices) were brutal on state’s attorney generals that were trying to defend the laws. It was definitely protectionism and the Supreme Court has never liked that." The 21st Amendment ending prohibition allowed each state to deal with alcohol sales and distribution. "States have broad power to regulate liquor," Justice Anthony Kennedy wrote for the majority. "This power, however, does not allow states to ban, or severely limit, the direct shipment of out-of-state wine while simultaneously authorizing direct shipment by in-state producers." Currently, 26 states and the District of Columbia permit direct-to-consumer wine shipments from out-of-state wineries. Seeing the handwriting on the wall, Texas last Friday opened its borders to allow wine shipments — even in "dry" counties where liquor is not sold. Wisnovsky said out-of-state shipments represent 15 percent of Valley View’s sales. "I would guess this could increase our shipments by 25 to 50 percent," Wisnovsky says. "More important, Internet sales are profitable and very easy. If someone comes here for Shakespeare, Britt or Crater Lake and they’re not from Northern California or the Northwest, they may come to this part of the world every five or 10 years. They may ship five or six bottles to themselves and six months later open up a bottle and find they really like it. Now in those states, they’ll be able to call an 800-number or go to the Web site and click a few buttons and get the wine sent." Some in the industry, however, think the states might take a scorched-earth approach and force all wine shipments to go through wholesalers. Vintner Chris Martin of Troon Vineyards in the Applegate Valley says he spent much of Monday morning online, reading the court’s 73-page ruling. "What I saw was pretty much favorable on all accounts," Martin said. "But the states have some options at this point. They can go a couple of ways: They might say they’re not going to fight and allow wineries to do direct shipping and sell in- and out-of-state. "But they could say that nobody can ship and that could make worse for all wineries. I believe that’s not going to happen. There are not a lot of constituents out there in favor of that measure." He points out that Arizona forces everyone to go through distributors. "They could allow no one to ship," Martin said. "Or they could open it up altogether." Reach reporter Greg Stilesat 776-4463 or e-mail [email protected] Wineries settle trademark dispute The owners of Valley View Winery confirmed Monday that they reached a settlement with Hinman Vineyards earlier this spring over the Lane County winery’s alleged trademark infringement. At issue was Hinman’s use of Rogue Red in 2002, a label Valley View first used for a blend of Syrah and Merlot grapes first produced in 1983. "There was a settlement," said Valley View President Mark Wisnovsky. "They can’t make it and we can’t talk about it." In 2002, Valley View asked Briggs Hill Investments Inc., which operates as Hinman Vineyards, to stop using the trademarked label. Then in 2003, Valley View filed a trademark infringement suit in U.S. District Court at Portland. Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback Free Music Downloads Conference Calls - $50/Month Home Security Systems Trunks, Footlocker, Trunk, Footlockers home equity loans helzberg diamonds Distance Education Diamonds Online Poker Auto Insurance Mesothelioma Slippers Student Loans tcg student loan consolidation teleconferencing Website Design & Marketing Memory Foam Mattress w2 forms Mortgage Calculator Free Home-Loan Referrals Payday Loans Advertisement s