We're Back With Friends

It has been one busy summer but now that the grape harvest has begun we are back to work and rejuvenated with ideas for the Illinois Winemakers Alliance! We have spent the summer researching wine legislation in Illinois and the United States. We have specifically been meeting and collaborating on ways to keep the public and wine consumers in ‘the know’ with wine legislation news. One way to do that was to create a group called ‘Friends of Illinois Wineries’. Our friends will not only get special treatment at participating Illinois wineries but will also be kept up to date with news and mailings. Here’s some more information on ‘Friends of Illinois Wineries’:

Sponsored by the Illinois Winemakers Alliance, the ‘Friends of Illinois Wineries’ program will help support efforts to minimize the cost of wine to consumers by protecting each winery’s right to ship directly to the retailer and to you.

A $10 donation gives you special access to promotional offers at participating Illinois wineries!

With your donation you will receive a card to present at each winery to redeem discounts, wine tastings and other special offers.

Participating Wineries Include:

Lynfred Winery
10% off the purchase of wine bottles or cases

Glunz Family Winery & Cellars
10% off the purchase of wine bottles or cases

Massbach Ridge Winery

20% off first bottle of wine purchased

Hidden Lake Winery
10% off the purchase of wine bottles or cases

Illinois River Winery
10% off the purchase of any wine bottles, cases, or merchandise


Galena Cellars Vineyard & Winery
10% off the purchase of wine bottles or cases

August Hill Winery
Two Tastings for the price of one, plus 5% off wine purchased

Kensington’s Wine Auctions
One free tasting of four Illinois wines of the customer’s choice

Tasting deVine (Wheaton)
10% off the purchase of wine bottles or cases

Tasting deVine (Naperville)
10% off the purchase of wine bottles or cases


To Become a Friend of Illinois Wineries Click Here

The New Illinois Wine Law

Today CLTV starting airing a new piece regarding the new Illinois wine bill that will go into effect on Sunday, June 1, 2008. It is a bill that the Illinois Winemakers' Alliance has been fighting and will continue to fight. WATCH THIS STORY UNFOLD .

The governor and many other individuals consider this bill to be beneficial to Illinois wine consumers and even market it as a great thing for the Illinois wineries. What has actually happened is that the three largest wineries, creating over 60% of the wine made in Illinois, have had their rights stripped from them. Before HB 0429 passed 2nd class wineries (wineries producing over 25,000 gallons of wine per year) in Illinois were able to sell 10,000 gallons of wine direct. With the new bill, 1st class wineries (wineries producing under 25,000 gallons of wine per year were given the ability to sell 5,000 gallons direct per year, while the large wineries were stripped of all direct shipping abilities.

What does this mean to the consumer? It means that if someone loves Cooper's Hawk, Galena Cellars or Lynfred wines and wants to buy them at a restaurant, they will be paying more. The reason? The second class wineries now must go through a distributor; tacking on dollars to the consumer. We find that to be discriminatory. We are living with liquor laws from the 1930's. Ridiculous.

Tom Wark, Executive Director of the SWRA, had a commentary in the Chicago Tribune the other day that truly sums it up. Bill Daley from the Tribune followed it up with a blog, too.

Want to know more! Let us know! Email us with your questions or post a comment.

Senate Bill 2121 Submitted

PHOTO: The picture above is of Lynfred Winery owner, Fred Koehler, breaking a bottle to recognize the opening of the winery in 1979. 29 years ago, when Lynfred first opened, Mr. Koehler was only allowed to produce 2000 gallons of wine per year. Today Lynfred produces about 80,000 gallons per year, and are about to hit the state’s limit of 100,000 gallons.


The IWA has been planning how to fight HB0429’s passing in 2007. The way for us to begin 2008 is by submitting a counter bill. Senator Carole Pankau, with the approval of IWA has submitted Senate Bill 2121 for review.

The Senate Bill would allow 2nd Class Winemakers (Illinois winemakers producing over 25,000 gallons) to purchase a self-distribution license. Current legislation (HB0429) takes away that right from the larger wineries in the state, which in turn, would raise the price of wine to consumers.

Chicagoist writer, Chuck Sudo, mentioned the new bill today in his article ‘More Wine Bills Working Their Way Through Springfield’.

The executives of IWA will be meeting in Springfield on Wednesday and we’ll have more updates later this week. If you have any questions in the meanwhile please email us at wineinfo@lynfredwinery.com

Be Informed

The passing of House Bill 0429 in 2007 has left the Illinois Winemakers’ Alliance with a battle on their hands. Our battle will begin with first informing our consumers of what HB0429 will do. Here is the letter we will be sending out to our mailing lists:


Dear Illinois Wine Consumer,

I am writing to you in regards to current wine legislation that will affect Illinois wine consumers. Recently House Bill 0429 was signed by Governor Blagojevich and will become law July 1, 2008. The media has portrayed this bill as beneficial to all Illinois wine consumers and Illinois wineries, while it actually strips the rights of the consumer and stunts the growth of the Illinois wine industry.

We want to inform you of how the bill will affect you as a consumer:

HB0429 Ignores you, the Illinois wine consumer
HB0429 Strips your rights as Illinois citizens to buy wine from out-of-state retailers
HB0429 Increases the cost of wine to you, the consumer
HB0429 Stops the function of the free market
HB0429 Is an Illegal restraint of trade and commerce
HB0429 Prevents industry competition
HB0429 Limits fair access of Illinois wines to the retail market
HB0429 Creates an Imbalance of distribution among state wineries
.
While the private interest of the commercial entities in the industry is artificially protected from the challenges of dealing with the changes in the market place, there is no noticeable advancement of the public welfare.

We will be contacting Illinois Senators and Representatives to review the Illinois Alcoholic Beverage Laws and Regulations. The Federal Trade Commission, the federal agency in charge of consumer protection and anti-trust enforcement, will be looking into wine distribution in various states.

We urge you, the Illinois Wine Consumer, to contact your state representative and senator. Further information can be found at www.illinoiswinemakersalliance.com as well as links to contact your local and state representatives.

Should you have any questions or concerns please do not hesitate to contact us at 630.529.9463 or at wineinfo@lynfredwinery.com. In the meantime we, as Illinois Winemakers, will be planning our next move.

Sincerely,

Fred Koehler
President
IWA

Scott Lawlor
Vice President
IWA

Tom Stone
Executive Director
IWA

This letter will be followed by similar letters to our state representatives, senators and the members of the press. We urge you to share this letter with fellow wine lovers anyway you can, email, blog, anything! Help us fight the fight!

IWA's Thoughts of Current Legislation

chicagotribune.com Editorial October 8, 2007

Corking the wine trade

When the Supreme Court struck down state laws barring individuals from buying wine directly from out-of-state wineries, one lawyer called it "the best day for wine lovers since the invention of the corkscrew."
The 2005 decision was a victory for consumers, an advance for open trade and a boon to vineyards with something special to sell. It turns out, though, that the celebrations may have been just a bit premature.
You see, one of the states that imposed limits on interstate wine sales was Illinois -- and it turns out some people here are not that keen on all-out, interstate competition. So they joined together to place new shackles on the wine trade. Last week, Gov. Rod Blagojevich signed a bill that limits significantly the freedom to buy and sell pinot noirs and chardonnays.
The bill allows all winemakers to ship directly to consumers who are of legal age. In the past, in-state vineyards could sell unlimited supplies to residents, but out-of-state competitors could ship no more than two cases per year to any one person. Now, the limit will be 12 cases, regardless of where the company is located.
That may not sound so bad, but there are worse provisions. Though they enjoy a new liberty to buy from out-of-state vineyards, Illinois oenophiles will no longer be able to order directly from out-of-state wine shops and other retail merchants -- something they have been doing for the last 16 years.
It looks as though about 500 California vineyards that are not officially registered as wineries won't be able to sell to individual buyers here either.
Meanwhile, Illinois' largest vineyards, unlike their smaller counterparts, won't be able to sell directly to stores and restaurants: They will have to go through wholesale distributors. That rule is bound to increase the price of a drink.
What gives? The governor's office proclaims that the bill "represents an agreement between Illinois wineries and liquor distributors." State Sen. Ira Silverstein (D-Chicago), a sponsor, boasted that it will "advance our growing wine industry."
Notice anything missing from those pronouncements? Only the needs of ordinary wine drinkers. The clear intent is to protect the profits of favored businesses -- and never mind if consumers, and the state's most successful wine producers, lose out.
Even some of the retailers who are being protected from out-of-state competition have spoken out against the new barriers, fearing they will provoke retaliation from other states.
"Bills like these are bad for consumers," Brian Rosen, the president and CEO of Chicago-based Sam's Wines & Spirits, told Crain's Chicago Business. "If every state's borders were open to wine sales, we could sell $50 million in wine a year outside Illinois."
For years, Illinois laws have interfered with the wine market in ways that do nothing to benefit the average tippler. It's time for the state to get out of the way and let buyers and sellers work out the arrangements that suit them best.

Copyright © 2007, Chicago Tribune
Illinois Winemaker’s Alliance Reply to be Posted in October 13, 2007 Tribune:

On behalf of Illinois winemakers, I would like to thank the Tribune editors for recognizing the untold story and inequities of the bill recently signed by Governor Blagojevich, limiting the direct shipment of wine by winemakers to consumers in Illinois. (“Corking the Wine Trade,” October 8, 2007)

What is lost here, in addition to the right of the consumer to purchase the wines of his choice and have them shipped direct to him, is the right most successful wineries in the state to provide a wanted and needed service to that consumer and to profit from that transaction, and the right of all Illinois winemakers to continue to grow without being penalized by a law that unreasonably limits their profit margins.

Under the terms of this bill, Illinois wineries that produce more than 25,000 gallons of wine must conduct all wine shipments through a distributor. What this means is that, not only can they not ship direct to their customers, but they are also restrained from shipping to their own satellite retail outlets. The result is an additional cost to the consumer of up to 20% on all wine purchases—a penalty to both producer and consumer that benefits only the middleman!

The Illinois Winemakers Alliance is a coalition of wineries whose legislative mission is to eliminate this penalty for the state’s most successful winemakers, for those winemakers who will soon achieve production levels that will earn this penalty for them, and for the Illinois wine consumer who bears the ultimate cost of this unfair legislation.

Illinois' Grape Expectations

A look at this season's grape expectations

September 19, 2007
Naperville Sun Times

Autumn is the time of year when grape growers all over the world lovingly harvest their crops and celebrate their bounty.

However, the recent adverse weather could put a damper on much of the merriment. Our world's shifting weather patterns have made it challenging for grape growers across the globe. Locally, with the recent rainstorms and flooding, I was concerned about its impact on Illinois wine production.

Harvest forecast

Overseas, it has been very difficult for grape growers. France experienced a cold, wet summer and had widespread attacks of vine mildew, translating into lower production this year. South Africa and Argentina also have repeated poor harvests. Parts of Australia have suffered from a very hot, dry growing season and fires. The resultant ash will dominate their grape juice with notes of smoke and bacon.

On the other hand, California experienced ideal growing conditions. Grapes love warm, sunny summer days, cool nights and light rain. Winemakers check the grapes pH, acidity and brix (the amount of sugar, which is available to convert to alcohol) levels. When right, the growers rush to pick the crops before any heavy fall rains occur. Grape growers prefer a drier, warm summer as it creates some vine stress (resulting in better wine) and allows a grower to add, through irrigation, the amount of water the crop needs. You can always add water, but cannot take it away.

Locally, our Illinois winemakers had a more challenging year. Kori Faltz of the Fox Valley Winery reported the early summer provided weather the grapes love. The heavy rains in August adversely affected the grape pH, acidity and brix, so more time was needed on the vine to hopefully restore the grapes to the proper levels. The recent Labor Day sun helped. Assuming some fall sunshine, our wet August will delay the harvest and only affect the winemaker's production schedule.

Andres Basso, the Director of Winemaking at Lynfred Winery of Roselle informed me they source some grapes in Illinois and Michigan, but the majority of grapes come from California and Washington. Given the West Coast's good harvest conditions, they are confident in the quality of their 2007 vintage.

Wine festivals

This past weekend, there were three separate festivals celebrating the fall harvest. The Naperville Wine festival was held at the Naper Settlement. Your entrance ticket included a souvenir wine glass and 10 tastings from more than 200 wine selections. Geneva celebrated the 25th anniversary of their Festival of the Vine. Twenty local restaurants offered their signature dishes along with 14 wines to sample. Local merchants offered Festival specials and horse drawn carriage rides were available. The Fox Valley Winery offered grapes in large vats for stomping, and participants received a complimentary shirt with space for their grape stained footprints. One of the state's largest wine festivals was held at Starved Rock State Park. This festival featured wines from 20 award-winning Illinois wineries. Both days featured Illinois grape seminars.

There's still time to enjoy this fall tradition. Coming up, there are two local wine festivals that are well worth checking out:

• Harvest Fest When: 11 a.m. to 6 p.m. Saturday
Where: Held at the Faltz Family Vineyards, 2714 N. 4251st Road, Sheridan.
Who: Fox Valley Winery
What: This fun day includes vineyard tours, wine tastings, a vintage baseball game, grape stomp and grape spitting contests and musical entertainment.
For more information: www.foxvalleywinery.com.

• Lynfred's Annual Oktoberfest, Pig Roast and Grape Stomp
When: 3 to 9 p.m. Sept. 29 and noon to 7 p.m. Sept. 30
Where: 15 S. Roselle Road, Roselle.
Who: Lynfred Winery.
What: Lots of wine, food and fun are guaranteed at this annual event. Activities for the whole family with German sing-a-longs, grape spitting, grape stomping, cork tossing and barrel races! Plentiful food with roasted pig, warm German potato salad and all the fixings plus bratwurst and "heavenly" sweet corn. Tasty desserts are also available.
For more information: www.lynfredwinery.com.

Bill Garlough is a Level One Master Sommelier. He also is an owner of My Chef Catering of Naperville, the 2007 Recipient of the US Chamber of Commerce's Small Business of the Year Award. He can be reached at www.mychef.com or winepairings@mychef.com.

Never. Give. Up.

Many thanks to Chuck Sudo of the Chicagoist for keeping tabs on this legislation!


HB 429 Passes, Litigation Imminent

Yesterday the Illinois House approved legislation regarding how customers will be able to buy their wine. It's a story we've been keeping tabs on here at Chicagoist for a while.

Supporters of the bill champion HB 429 as a victory for Illinois consumers. They claim that the uniform 12-case limit shared by in- and out-of-state wineries, and the establishment of a permit system allowing smaller out-of-state wineries to sell their product directly to retailers, will broaden the variety of wine available to consumers. Opponents of the bill say that HB 429 is not necessary; since Illinois was already a state with "full reciprocity," arguing that consumers already had unfettered access to a wide array of wine through out-of-state retailers and wine clubs. Chicagoist received a press release from Specialty Wine Retailers Association Executive Director Tom Wark detailing this argument. You can read it here (Adobe PDF file).

Additionally, HB 429 saw substantial opposition from the state's two largest wineries, Lynfred Winery in Roselle and Galena Cellars Vineyard & Winery, who argue that they and similar sized wineries in Illinois will see a substantial drop in revenue from direct sales, by having to utilize a wholesaler to sell their wine, under the new measure. Neither of these points were reported in the AP wire story referenced by Crain's yesterday.

Indeed, it looks as though the state's wholesale distributors are the big winners in all this. They've been lobbying hard for this legislation for close to two years, putting substantial amounts of money into the campaign funds of many of the bill's sponsors. If anything, the bill ensures that wholesalers are the first in line and get to have the pick of the litter. Wark has previously promised that SWRA would take HB 429 to court if it passed, and an e-mail we received from Lynfred marketing director Christina Anderson-Heller indicated that neither they nor Galena have given up the fight.

We have to ask: the state legislature can't agree on a budget and state employees are days away from not being paid, yet this bill managed to pass. We're currently wondering where their priorities lie.

By Chuck Sudo

Sadly It Effects the Growth

Unfortunately a battle has been lost that we have been fighting for quite some time now. The Illinois Wine Industry has grown from nothing to 70 wineries in the past 30 years and sadly a defeat upon its growth has occurred. We sincerely thank you for your letters to senators and all your efforts! Don’t worry, we’ll prevail!!!


State senate OKs wine sales proposal

By Kurt Ericksonkurt.erickson@lee.net

SPRINGFIELD -- The state Senate approved legislation Tuesday that would change how wine can be bought and sold in Illinois.

The measure, which was sent to the governor’s desk a 49-5 vote, would place a 12-case limit on how much wine a consumer can purchase directly from any winery. The current limit is two cases.

At the same time, it would bar consumers from buying wine directly from a wine distributor. Instead, they would have to buy the product from either a winery or a retailer.

The measure, in negotiations for more than two years, was triggered by a U.S. Supreme Court ruling that requires states to treat in-state and out-of-state wineries the same.

The legislation is viewed as positive for about 95 percent of the industry in Illinois, which is comprised of 70 mostly small wineries.

Alexa Tuntland, owner of the Waterman Winery and Vineyards in northern Illinois, said the legislation has been a ’’big concern’’ among her colleagues in the industry.

’’We don’t want to lose the ability to be able to distribute our wine,’’ said Tuntland.

"It’s a good deal for me," added Rick Mamoser, owner of Prairie State Winery in Genoa. "It helps the vast majority in our industry."

Under the proposal, a small winery will be limited to distributing 5,000 gallons directly to retail stores and restaurants.

’’It’s good for consumers, we believe,’’ said Robert Myers of the Associated Beer Distributors Association of Illinois.

But larger wineries say the measure could hurt their business because it forces them to use a distributor to sell their product.

Fred Koehler, president of Lynfred Winery in Roselle, said the legislation could cost his company $150,000 to $200,000 a year.

’’It just isn’t fair,’’ said Koehler.

Scott Lawler, president of Galena Cellars in northwest Illinois, said the legislation will hurt Illinois’ fledgling wine industry.

’’This is going to shut the door on what we’ve accomplished,’’ said Lawler, whose winery also is considered among the largest in Illinois.

The legislation is House Bill 429.



Always fighting the fight. . .



Christina Anderson-Heller, with the Illinois Winemakers’ Alliance

Article Repost from Today's Fermentation Blog

The first blog for the Illinois Winemakers' Alliance comes from a blog at Tom Wark's 'Fermentation' blog. Tom Wark, the Executive Director of the Specialty Retailers' Association, explains what is going on in the Illinois Wine Industry in a blunt, yet totally understandable, way:


1933: Hitler and Wholesalers
For anyone who has not been following the attempt in Illinois to re-write the wine distribution laws in that state so that distributors are granted even more power than the state already grants them, a new development has occurred.

A new association of wineries calling themselves The Illinois Winemakers Alliance has formed in part to oppose Illinois House Bill 429.

HB 429 does a variety of things:

Allows out-of-state wineries to ship to Illinoisans2. Allows in-state wineries to ship to Illinoisans3. Allows wineries making up to 25,000 gallons of wine to distribute 5,000 gallons annually to retailers and restaurants4. Prohibits wineries making over 25,000 gallons of wine to distribute directly to retailers and restaurants5. Prohibits Illinoisans from purchasing wine from out-of-state retailers..6. Allows Illinoisans to have wine shipped to them from in-state retailers

The reasons consumers are against this bill should be obvious. They are being stripped of a long held right to buy from out of state wineries. But when you couple this with the fact that in-state retailers may still ship to Illinoisans you can see the unconstitutional implications of the proposed legislation. To quote from the Granholm v. Heald Supreme Court decision:

"States may not enact laws that burden out-of-state producers or shippers simply to give a competitive advantage to in-state businesses….If a State chooses to allow direct shipment of wine, it must do so on evenhanded terms…”

However, the new Illinois Winemakers Alliance, while opposing this anti-consumer provision of HB 429, is also opposing the bill because it strips some Illinois wineries from selling directly to retailers and restaurants, even in the small amount that the bill allows smaller wineries to sell. These wineries that make more than 25,000 gallons annually and that would no longer be able to sell direct to retailers and restaurants, would be put at the mercy of Illinois wholesalers—who are the only ones who could sell these wines to the trade but are under no obligation to distribute these wines. Put simply, Illinois wineries making over 25,000 gallons of wine would be at the mercy of Illinois wholesalers to get their wines in restaurants and on store shelves. What if no wholesalers want to distribute these wineries' wines?

You can see why the new Illinois Winemakers Alliance, that represents wineries producing nearly half the wine made in the state, are against HB 429. And you can see why wholesalers just LOVE this legislation.

Currently HB 429 is sitting in the Senate Rules Committee awaiting action. It has passed the house and would likely pass the Senate if it ever gets out of the Rules Committee.

HB 429 represents the kind of regressive direct shipping and wine legislation that has popped up all over the country since the Granholm Supreme Court decision. What's most interesting is that NO consumers are asking that this kind of legislation be passed. And no wineries are asking that their ability to sell directly to retailers and restaurateurs be diminished. As always it's the wholesales that are demanding this legislation.

With regard to the anti-consumer legislation proposing that wine lovers no longer be allowed to buy wine from out of state retailers, it seems counter-intuitive that wholesalers should have anything at all to say about this. Wholesales don't interact with consumers. They don't sell to consumers and they don't buy to consumers. They don't talk to consumers and they certainly don't listen to consumers. Why are they always the one's proposing legislation that affects consumers?

When was the last time you saw wholesalers actually do something beneficial for consumers?

They talk a big game about providing lots of choice by distributing so many wines in so many states. Yet, there's no way they can rival the number of wines that are made available to consumers via direct means. Furthermore, they spend millions of dollars opposing consumer access to wines through campaign contributions, writing anti-consumer legislation and opposing reasonable direct shipping legislation.

There is one theme that runs through all the actions of wholesalers whether they are opposing direct shipping to consumer or the ability of wineries to sell direct to restaurants and retailers: Their actions are all meant to reduce the power of their competition.

It's as though they know something very fundamental about themselves and their business model and the market place. It's as though they know that forced to compete in a level market they'd lose that competition. Luckily, they've had the states on their side since 1933 when prohibition ended and most states mandated that producers of wine sell to wholesalers who would then sell to retailers and restaurants. In essence, the states have been protecting wholesalers from themselves for nearly three quarters of a century.
By coincidence........the wholesalers gained their power the same year Hitler gained power and became Chancellor in Germany.

It's not 1933 anymore.

Tom Wark is the executive director of the Specialty Wine Retailers Association.