New Jersey State Senate Commerce Committee to Discuss Bill to Broaden Consumer Choice on Winery Direct-to-Consumer Shipping

NJ law sharply limits choice by preventing consumers from having more than 90% of US wines shipped to their home or workplace. Wineries producing under 250,000 gallons per year can ship direct to NJ consumers; individual wineries or wine companies producing more than  this “capacity cap” limit cannot.

Supporters of legislation (A1943/ S2683) to open direct-to-consumer shipping from any US winery that pays a license fee and agrees to collect/remit state sales and excise taxes – among other requirements – will testify in favor of the measure at this discussion-only hearing. Among those expected to testify are:

• Terri Cofer Beirne, Eastern Counsel, Wine Institute
• Tony Tarantino, NJ wine customer
• Anne Huffsmith, General Counsel, Naked Wines
• Alan Sharp, Naked Wines NJ customer
• Greg Kryder, Chief Finance Officer, Penrose Hill

Of the 46 – and soon to be 47 – states that allow winery-to-consumer direct shipping, only New Jersey and Ohio have laws banning some wineries from doing so based on their production each vintage. States that allow direct-to-consumer shipping from all wineries have seen no loss in wholesale or retail revenues, or associated jobs.

Eliminating the capacity cap will:

• Bring New Jersey $3.3 million to $4.6 million a year, short term, in taxes and fees — and nearly $6 million a year, longer term.
• Result in much wider choice for New Jersey consumers and lower average cost-per-bottle.
• Expand the e-commerce channel broadly to the benefit of all participants, including local retailers.
• Allow room for simultaneous expansion of both the DtC and traditional off-premises retail channel for wine sales with no loss of business or jobs.

This data is from an April 2021 report by wine industry experts commissioned by Naked Wines, a member of the Free The Grapes! Coalition.