And Now, After Months Of Bureaucratic Wrangling, That Sweet, Sweet California Hooch Is Here!

Eric Asimov discovers that, after months of ironing out bureaucratic details, direct shipment of out-of-state wine is underway in New York:

For years I had been thwarted by Navarro Vineyards’ policy of bypassing retail stores. Instead, Navarro’s fine gewürztraminers and late-harvest rieslings from Mendocino County were sold only through restaurants or by direct sale to customers. As a New York resident, I was out of luck. That is, until last May, when a Supreme Court ruling struck down bans on out-of-state wine shipments in New York and Michigan. Then in July, New York passed a new law allowing residents over the age of 21 to do the civilized thing.

Many more frustrating months passed as the state ironed out the mechanics of its new law. Out-of-state wineries needed to obtain licenses and the bureaucracy required a blizzard of paperwork. The state had to approve agreements with carriers like Federal Express and United Parcel Service before they could legally ship wine. And then, since I’m the type who still holds on to a collection of phonograph records, it took me a couple of months to recognize that I was no longer bound by the old rules.

But when the realization came, it came fast. Within minutes of sitting down at the computer one morning, a half-case of Navarro wines was coming my way. Not bad, I thought, as I began to consider my wish list of hard-to-find wines.

I had visited Peay Vineyards on the Sonoma coast last November and was impressed with their syrahs, pinot noirs and Rhone-style wines, but had never seen them in stores. Bingo! Six assorted bottles of Peay wines were coming my way, too. I was beginning to like this.

Asimov reports that small producers are unable to keep up with the paperwork:

While consumers may be pleased with their new access, the benefits are a little less clear for wineries. Sure, they can expand their market, and, in dealing directly with consumers they are cutting out the middle men, the distributors and retail shops that occupy the two other rungs of the three-tier system that has long stood between consumers and their desired bottles. But smaller producers in particular say they are being overwhelmed by paperwork and that new licensing fees may cut off previously open markets.

“Every state has different laws,” said Dave Harr, the shipping manager at Navarro. “One wants us to collect excise tax, or sales tax, or no tax, leaving it to consumers. Florida wants the tax form shipped to the consumer. New Hampshire has a specific form we have to fill out. Every state has different quantity laws, reporting procedures and fees.”

Navigating through the New York system, for example, requires three different reports, Mr. Gross said: semi-annual, quarterly and monthly, showing tax payments, volume shipped, where it was shipped, and so on. For some winery owners, simply thinking about it causes a headache.

Rocking Horse Winery in Napa, Calif., makes some fine zinfandels, but when I inquired about ordering directly, Jeff Doran, the owner with his wife, Nancy, said he hoped to get around to it, but not until it was less difficult.

“It’s created a quagmire for the small producer,” he said. “So at the moment, we’re focused on the three-tier market because that’s the path of least resistance.”

If software firms can figure out Sarbanes-Oxley reporting requirements, then there has to be some kind of system they can develop for wine shipping. I mean, this is fucking America! Get on it!

Backstory: Functional Repeal Of The 21st Amendment, That Sweet, Sweet California Hooch Is On Its Way, Sweet California Hooch Must Wait.