Illinois Acts to Help Its Wine Industry

Illinois wineries will benefit from a wine shipping bill signed into law by Governor Rod Blagojevich.

The law allows wineries to sell their products to in-state and out-of-state consumers more easily and is the result of compromise between wine growers and the alcoholic beverage industry, according to a press release.

LAW'S PROVISIONS

House Bill 429 allows wineries to ship up to 12 cases of wine annually directly to an Illinois customer, wherever the winery may be located. Also, wineries producing less than 25,000 gallons of wine annually can sell up to 5,000 cases directly to retailers.

"The intent of this provision is to permit small wineries to sell their wines directly to retailers," said Illinois Grape Growers and Vintners Association President Paul Renzaglia. "By signing HB 429, the governor has given our young industry the ability to grow and prosper."

SUPREME COURT REFERENCE

The new law conforms with a 2005 Supreme Court decision in Granholm v. Herald, in which the high court held that no state may ban or severely limit the direct shipment of out-of-state wine while simultaneously authorizing direct shipments by in-state producers. The new law treats both in-state and out-of-state wine producers equally and evenhandedly.

"(The) bill signing caps years of work and great compromise between many stakeholders," said Bill Olson, president, Associated Beer Distributors of Illinois. "By enacting HB 429, the governor has ensured a safe and competitive marketplace for consumers, wineries, and Illinois retailers."

The coalition representing Illinois' alcoholic beverage industry included the Illinois Grape Growers and Vintners Association, Associated Beer Distributors of Illinois, Wine Institute, Wind and Spirit Distributors of Illinois, and Beverage Retailers Alliance of Illinois.

The wine shipping law includes provisions that preserves the state's control of alcohol entering from across state lines.

SAFEGUARDS