New law a bittfer pill

New law a bittfer pill

for county vintners

, By Kevin Allen

Rappahannock News Staff Writer

A new Commonwealth law barring Virginia vintners from selling their wines directly to stores and restaurants is shaking up Rappahannock County’s wine industry.

Since the change took effect July 1st, small wineries in the county have had to hire distributors. Several county wine makers say the move has stifled marketing opportunities and added costs to already tight budgets.

The number of wineries in the commonwealth has grown from three in 1971 to more than 100 today. Much of the boom has come during the past 25 years under the Virginia Farm Winery Act of 1980, which allowed in-state wineries to act as wholesalers. But that business model was imperiled after the U. S. Supreme Court ruled last year that the law is unconstitutional on the grounds that it gave preferential treatment to Virginia businesses.

If Virginia wants in-state wineries to be able to distribute directly to stores and restaurants, it has to allow out-of-state vintners to do it as well.

“It’s had a fair impact on our sales this year,” said Dave Whittaker, owner and manager of Unicorn Winery in Amissville. Whittaker estimates that his winery has lost $15,000 to $20,000 in revenue due to the ban on selfdistribution.

Wineries can still sell their products directly to consumers on site and at festivals and tastings. But, according to a recent survey by the Virginia Wineries Association, state wineries still expect to lose an average of 25 to 30 percent of their revenues under the new law.

The new rule has taken some of the momentum away from Gadino Cellars, which opened in 2005 in the Tbwn of Washington.

“We were pretty much on a roll,” Gadino Cellars partner Derek Pross said. “We were planning to expand, maybe even push 40 percent of revenue as far as wholesale.”

Pross said another effect of the law is that small wineries will lose valuable marketing exposure.

“When you’re first starting out, it’s a whole new brand and you need to get your name out there,” Pross said. “We’re trying to get known right now, and one of the ways you get known is get your wines out to the retail shops.

“It’s a frustrating scenario. Most big distributors wouldn’t care to buy 50 cases of Gadino Cellars wine,” Pross said. “It’s just too small.”

Sunnyside Market in Washington sells several wines from Rappahannock County and the rest of the commonwealth. Prior to July, the store bought many of its local wines directly from producers. But now, even though the market stands just a few miles from several county wineries, a middle man is required.

Meredith Gorfein, manager of the market, says the change puts a hardship on the local wine industry.

“Most of the wineries are small and will stay small, and it will make it difficult for them,” Gorfein said.

Jimm East, owner and operator of Sharp Rock Vineyards in Sperryville,

See WINE, Page A2