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New Jersey State Senate Commerce Committee to Discuss Bill to Broaden Consumer Choice on Winery Direct-to-Consumer Shipping
June 16 @ 10:00 am - 5:00 pm PDT
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.