State should be more wine friendly

Published 12:00 am Saturday, September 17, 2005

With the U.S. Supreme Court shaking up laws concerning the sale and distribution of wine, perhaps Mississippi will take a long look at our liquor regulations in an effort to become more consumer-friendly.

The high court this week struck down laws that prohibit out-of-state wineries from shipping directly to consumers while at the same time allowing in-state wineries to do the same thing. The ruling did not, however, restrict states from prohibiting the direct shipment of wine to the consumers. In essence, the high court said distribution laws must be equal for all wineries regardless of their location.

Mississippi has such a law that allows in-state wineries to ship directly to consumers but prohibits out-of-state wineries from doing the same. That means lawmakers have two choices:

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4Prohibit all wineries from shipping directly to consumers.

4Allow all wineries to ship directly to consumers.

Mississippi has only one winery, Old South Winery in Natchez. Scott Galbreath, who owns and operates Old South, said he does few shipments directly to consumers. Instead, most of his wine is purchased either at the winery or is sold through the state’s Alcohol Beverage Control department of the State Tax Commission.

&8220;We’re just a little ol’ country winery down here,&8221; Galbreath said. &8220;I don’t think (changing state laws) would have an effect on us either way.&8221;

Lawmakers will look at this issue from a revenue standpoint. The Tax Commission said the state collected $69.2 million in fees and taxes on alcohol sales for the last fiscal year. The breakdown by wine, however, was not readily available, said Kathy Waterbury, the Tax Commission’s communications director. Also not readily available was the amount of revenue generated from special orders, where consumers go through their local liquor store to petition ABC to order a specific wine.

Rep. Bobby Moak, D-Bogue Chitto, chairs the Appropriations Subcommittee on Temperance, whose job it is to oversee such laws. Moak readily admits people in Mississippi already find ways around the state’s prohibition on direct delivery from out-of-state wineries. &8220;Some have found the right wineries that will deliver directly to their home in direct violation of state law, and other people use addresses out of state&8221; and then bring the wine back to Mississippi, Moak said.

For his part, Moak is in favor of allowing all wineries to deliver directly to consumers, so long as precautions are taken to protect state revenues. While thought and debate over this issue is still in its infancy in Mississippi, Moak believes lawmakers could come up with some sort of shipment system set up through the state.

When lawmakers confront changing state law to meet the U.S. Supreme Court ruling, they should consider a more consumer-friendly approach to the wine industry. In Mississippi, only a small percentage of ABC wine purchases are done through special order for individual consumers.

Allowing wineries to deliver directly to consumers would be a step toward being a more consumer-friendly state to wine enthusiasts without hurting state revenue or local package stores. Considering most wineries only ship by the case and that shipping can take up to two weeks, only the serious wine drinker is going to take advantage of the change in the law.

Many wine consumers would love to see Mississippi go the way of Alabama and other states who allow grocery stores to sell wine, which could lead to an increase in sales tax revenue both for the state and for local municipalities. Of course, that is an entirely different fight. For now, let’s just hope for one step at a time toward a more wine consumer-friendly state.

Sam R. Hall

can be reached by e-mail to

shall@sctonline.net

.