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Court Decision Could Close Winery Tasting Rooms

Government | Sat, 02/19/2011 - 11:45 am | Updated 1 year 13 weeks ago | Read 6370 | Commented 20 | Emailed 15

By Jack Fichter

Photo by Jack Fichter

ERMA — A court ruling could prevent local wineries from selling any of their wine to the public here in tasting rooms, in effect, forcing wineries to close their doors.

Last December, a three judge panel from the U.S. Court of Appeals for the Third Circuit ruled it is unconstitutional that the State of New Jersey allows wineries inside the state to sell directly to the public and retailers but prevents wineries outside of the state from doing the same.
Out-of-state wineries must use a system of wholesalers and retailers while wineries can sell bottles on their premises.

The case has been sent to a lower court, which has two options: stop all wineries from selling directly to the public, allowing wine sales only through wholesales or allow out-of-state wineries to sell directly to the public in New Jersey.
The case known as “Freeman v. Corzine,” challenged the state’s alcoholic beverage control law a violating the dormant Commerce Clause.

Darren Hesington, winemaker for Cape May Winery on Townbank Road, said wineries were trying to work out a way to salvage their tasting rooms.

“If the tasting rooms fail, 95 percent of the New Jersey wineries are going to fail,” he said.

The Garden State Wine Growers Association is trying to work on a resolution that would please everyone, said Hesington. He said the organization would meet with the state and wholesalers and retailers of wine to come up with a resolution that will most likely require state legislation to be implemented.

Hesington said Cape May Winery sold almost all of its wine at its tasting room and a few other outlets.
Regulations allowed New Jersey wineries to ship wine within this state but other wine producers were not allowed to ship into the state, he said, which caused a court case.

“If we’re allowed to do it, everybody is supposed to be allowed to do it,” said Hesington.

He said 37 states allow wine shipping from other states.

One year ago, the state senate passed a bill that would allow wineries to ship directly to customers. A companion bill stalled in the state assembly.

Hesington said wholesalers and retailers were opposed to allowing direct shipping of wine. While the state has 1,700 wine retailers, it has only 40 wineries.

“We’re the little fish trying to make a big splash,” said Hesington.

He said a judge could “level up” which is allow everybody to do the same thing or “level down” which would be effectively closing tasting rooms.

“The shipping issue is a double edged sword for us,” said Hesington.

Giving wineries in the state the ability to ship wines would be helpful but he questions if people can sit down at their computer and order wine from anywhere in the U.S., “what makes you think they are going to order a New Jersey wine?”

As a growing business in New Jersey, wineries like Cape May Winery need the wholesalers and retailers. Cape May Winery is the fourth largest producer in state with 25,000 gallons per year, he said.

The Garden State Wine Growers Association has hired both legal counsel and a lobbyist, according to Scott Donnini, chairman of the wine grower’s legal committee. He owns the Aburn Road Vineyard and Winery in Salem County, near the Cow Town Rodeo.

“If we were to lose outlets, direct distribution and our ability to sell out of our tasting room, we’re done,” said Donnini.

He said the litigation still sits with the Third District Court of Appeals, which is waiting to decide if they will hear an argument with the entire group of the third circuit as opposed to the three-judge panel that heard the case originally. He said he did not expect that would be successful and the case would be remanded back to district court.

“When that happens, we want to make sure we are there as one of the defendants,” said Donnini. “We’re going to intervene into the case.”

The wine growers have not been a party in the case up to this point.
The plaintiffs are suing to get direct shipping of wines with the state as the main defendant. A group of wholesalers also intervened, opposing direct shipping, said Donnini.

On the legislative side, he said efforts were being undertaken to amend the direct shipping bill to include items important to wineries in the state such as allowing retail sales through tasting rooms and direct distribution.
Donnini said he hopes the state has enough interest in preserving small parcel agriculture and agri-tourism provided by wineries. He called vineyards the biggest agricultural growth area in the state.

“We see ourselves as exactly where California was in the 60s,” said Donnini. “We think we’ve got everything they’ve got and then some.”

Sen. Jeff Van Drew said he and First District Assemblymen Nelson Albano and Matt Milam were supportive of the direct shipping bill. Van Drew said he was working with Senate President Stephen M. Sweeney who sponsored the bill.

Print | Email Updated 1 year 13 weeks ago

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Wed, 02/23/2011 - 9:44am - Posted by: VincentClosed

Mr. Big is so typical of everything wrong with the wine industry. Just because he doesnt read about NJ wines in the Wine Spectator - they must all 'taste like crap'. What a display of blithering ignorance. If he knew ANYTHING about wine-making, viticulture and the technological revolution in wine-making he would know that there is absolutely NO reason why award winning wines cant be made in New Jersey. All they need is some time to mature, and some local support. South Jersey has a perfect climate and soil for growing vareties like Merlot, Chambourcin, Vidal Blanc, Cab Franc and other desirable vareties. Mr. Big is exactly the type of fool that has zero undersanding of the industry and creates mental roadblocks for people who are just as uninformed as he is. Unfortunately people like Mr. Big pretend to know more about wine than others who admit they dont - therefore people believe the ramblings of this idiot and come away thinking that Mr. Big is stating some kind of fact when he comments on NJ wines with out ANY first hand knowledge. It seems to me that along with this legal challenge, it is the brain-dead world view of people like Mr. Big that that present the biggest problem for the NJ wine industry.

Wed, 02/23/2011 - 12:01am - Posted by: Mister Big

Celtic Storm.......You make a EXCELLENT Point here...Not only do the vineyards in Cape May County pay about minimum wage and with little to no benefits (Par for Cape May County) their product is inferior. Cape May County has to bring in Blue Collar jobs with benifits..... But we all know that won't happen and that is a shame. Do I feel sorry for these "Gentleman Farmers" ... It depends how much of a farm subsidy the Federal Goverment is paying.. Remember a certain mayor years ago MILKING the system? I know that with a college education, I have to commute to Philadelphia and New York City four days a week to make ends meet. I love the county, HATE the politics. Now it's time to kick back with a great glass of white California Burgundy.

Tue, 02/22/2011 - 1:24pm - Posted by: CelticStorm

Oh No..What a tough break,,all these wineries might have to close!!..How ever will these employers continue their policy of ferociously screwing their employees,especialy in Cape May County? Where will they ever find more victims to destoy?

Tue, 02/22/2011 - 1:59am - Posted by: cnh320

I can honestly say, that my wife and I have visited 32 wineries in New Jersey this past summer & fall. And many were by far the most terrific wines we have tasted, and yes we have visited wineries in California. Our favorites in NJ is Alba Vineyard, Valenzano Winery, Auburn Road Vineyards, Cava Winery & Vineyard to name a few. Mister Big, your ****** is showing. I don't know how or why you boast of your heritage of NJ, when you clearly don't support it. You just come across as conceited and egotistical. I think the matter here is not who thinks what wine taste better, but the fact that again the state is interfering with peoples business and livelihood. The state wants to be able to get more money out of the wineries & vineyards. If the state intefers, they will go out of business and close and you will have less wineries and a lot more Wal-Marts on those lands. And you can't but wine there. So in closing, New Jerseys motto still rings true: "New Jersey, we put the F.U. in fun"

Mon, 02/21/2011 - 4:52pm - Posted by: _Username_

It does not matter where the info is being displayed. I am merely showing the facts of NJ Wine Awards Won.

Mon, 02/21/2011 - 4:15pm - Posted by: Mister Big

Nice try _Username_... Article from some "bush league" Jersey Publication! The truth is the nation is unaware of Jersey wines and for a very good reason. Can you pronounce the word SWILL? I'm not anti New Jersey as I have been born and raised here..... And have tried many Jersey vineyards as well as many vineyards from New York to the west coast. My favorites hands down , are Oregon, Washington State and of course California. As I have stated in a earlier post, New jersey farmers should stick to growing vegetables, as they are the nations best. Wine however, the novice should stick to home made vino as a hobby not as a industry. Now it's almost dinner time, and I'm going to Cape May to a fine eating establishment, BYOB of course with a nice bottle of Columbia Crest Cabernet Sauvignon. Bon Appetit!!!

Mon, 02/21/2011 - 4:05pm - Posted by: WhiskeyTango

Mister Big, I think you are the one that needs to be educated. If you did your homework, you would be aware that the number of New Jersey wineries have more than DOUBLED in the past five years.

Mon, 02/21/2011 - 1:10pm - Posted by: Mister Big

To VincentClosed: I stand by my statement that ALL New Jersey wines taste like CRAP. Reason, New Jersey wineries have been around for over 100 years and have had ample time to prove themselfs. For you to compare what happned to the Napa Valley, is so lame! If New Jersey wines were so great people would have known about them long ago! The Wine Spectator, the benchmark of the wine publications would have written about Jersey wines long ago. Once again, Jersey wines are crap, and the framers should stick to growing Jersey Fresh Vegetables. My advise to you, VincentClosed is to take a course in wines, and then you MIGHT be able to comment on this subject!!

Mon, 02/21/2011 - 9:19am - Posted by: capemay08204

What's next? Microbreweries can not sell their beer? Farmers can only sell what they grow on their farms? New Jersey is fast becomming the State of over regulation. I suppose those who do not like NJ farms would rather see housing developments and strip malls. If you have ever taken a tour of Napa Valley in California, you will also see how much of the tourist dollars are put back into the region through winery tours, restaurants, and gift shops, as well as bed and breakfast accomodations that abound in the wine region. Are the liquor retailers so greedy that they want all of the business to go through them or is it something else? It takes a lot of money to support a farm whether one grows tomatoes or grapes, chickens or dairy. Let's support our local grape businesses or they may go the way of the once thriving dairy farms. I do not believe the local wine tasting rooms are contributing to the alcoholic issues of the area. Boones farm and Ripple are not made in NJ and local wines do not come in a box.

Mon, 02/21/2011 - 8:37am - Posted by: Earthdoctor

It is said that beauty is in the eyes of the beholder... this saying can be said for those who enjoy wine, each person's tastes are differnet. Some New Jersey wines may have a better taste than others but the hand crafting that goes into all wines is an art form that take years of hard work and investment. Those who know what is involved in the production of fine wine, know the quality that exists in the New Jersey wine industry. To say they do no taste good is the same as sayiing the soil from which the grapes came has a bad taste. So... if you don't like New Jersey soil, you can move.

Mon, 02/21/2011 - 7:00am - Posted by: WhiskeyTango

Thanks, Vincent! You are right on target. The growing New Jersey wine industry is a great addition to the GARDEN STATE. I also love many of the reds these wineries produce and would much rather look at a nice vinyard, rather than another housing development.

Sun, 02/20/2011 - 11:05pm - Posted by: Jets Sanchez

I have to agree Vincent;...............and most of those snobs are from New York who would hate to give New Jersey credit for anything!!

Sun, 02/20/2011 - 6:04pm - Posted by: VincentClosed

"All New Jersey wines taste like crap" --- geez, what a display of knowledge. You sound as intelligent as the Europeans who spent decades mocking the California wine industry. There are over 40 wineries in NJ, each producing many different vareitals, over the decades that thousands of different wines that have produced in the state --- you have tasted ALL of these wines and can ensure us that they are ALL crap???? right, in reality I doubt you have even tasted a NJ varietal.

I enjoy going to wine tastings to try new and different wine but there is one thing i HATE about the wine society and that is compete fools like Mister Big and whitespider. I've found several extremely impressive reds from several NJ wineries and I get no better entertainment out of brown bagging these wines, going to a wine tasting (with the ilk of Mr. Big and whitespider) and pouring these wines, getting great compliments and then start a discussion about the local wine industry. Undoubtedly, at every event we have a handfull of snobs who are convinced how much NJ suck as they are enjoying they brown-bagged wine. I open the bag and show people that what they are drinking is actually the stuff they are mocking.

Anyone who considers themselves a wine 'expert' can easily be shown to be the fool they are. The key is to find the right wines from the right wineries. This would take some first hand knowledge and the ability to actually visit the 40-some wineries in the state. This ruling could destroy these sales rooms and allow jackasses like whitespider and Mr. Big be the only source of knowledge on the industry. This is why we need to save tasting rooms.

Sun, 02/20/2011 - 5:16pm - Posted by: Jets Sanchez

I have to agree with Shut Your Face. Here we go again. New Germany's laws are there to prevent any small business from thriving. If they are not screwing with the wineries, they are screwing with the Commercial Fishermen. If they are not screwing with the fishermen, they are screwing with the contractors; ie, making plumbers have a "Handy Man" License just to install a vanity and an electrician to do the same to install a microwave. Under Corizine's watch, they made a law that says if a plumber installs a vanity or the electrician installs a Microwave it's "Outside' of their license. So plumbers and electricians had to get an additional license (with additional insurance) just so the State could make more money!! Under the new law, the homeowner has to get a builder to install the vanity or microwave. The plumber and electrician can only run the pipes or wires respectively (unless they get a Handyman license also)!!! Just another New Germany Scam!!

Sat, 02/19/2011 - 11:01pm - Posted by: billmacclemmy

I am so glad I no longer live in New Jersey. Its more rules and regulations as always. The government is obsessed with controlling everything. The nanny state lives on!!!

Sat, 02/19/2011 - 9:51pm - Posted by: capemabel

I love the wineries in the county and am grateful to have them and the farmers who remain promoting agriculture. As to those chronic nay sayers, try a dose of pleasant positive words sometime. You may find you too have much to be grateful for.

Sat, 02/19/2011 - 8:43pm - Posted by: shut_your_face

Shouldn't they fall into the same catagory as a farmer? Farm and winery owners both take the same route when it comes to sales of their product. What happened to the Christie administration helping the small businesses? I don't know of any wineries from NJ being recognized worldwide. They are harmless honest people making a living just like everyone else.

Sat, 02/19/2011 - 6:04pm - Posted by: Justalocal

"Giving wineries in the state the ability to ship wines would be helpful but he questions if people can sit down at their computer and order wine from anywhere in the U.S., “what makes you think they are going to order a New Jersey wine?”

So... by that logic.... a captive audience is the only reason you do business? C'mon, man.

Sat, 02/19/2011 - 3:29pm - Posted by: whitespider

Removal of these half-baked, pseudo wineries is in order. These winery shams are a residue of the 90's yuppie/entitlement culture. The wines ARE crap and the "wine tasting rooms" are a free trough for our already burgeoning community of sops and alcoholics. Get rid of them.

Sat, 02/19/2011 - 3:19pm - Posted by: Mister Big

All New Jersey wines taste like crap. I have yet to find a decent one in the state! Bildge water has a better smell.




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