N.J. Senate panel to vote on reviving deliveries from wineries to doorsteps - pressofAtlanticCity.com: Business

N.J. Senate panel to vote on reviving deliveries from wineries to doorsteps

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Posted: Thursday, February 4, 2010 2:20 am

Having wine shipped to homes from a winery may become legal once again for New Jersey consumers.

The Senate Law and Public Safety Committee could vote today on a bill that would allow wineries to directly mail their wines, instead of requiring customers to go through a retailer or wholesaler. Currently, wineries can only sell their wines at their establishments or allow a distributor to sell them through a liquor store or restaurant.

If the bill is approved, the full Senate would have to vote on it, while the Assembly would need to pass its own version. The Senate bill's primary sponsors are state Senate President Stephen Sweeney, D-Salem, Gloucester, Cumberland, and Brian Stack, D-Hudson.

State agriculture officials have been touting the state's wine industry as a way to promote economic development. New Jersey is the sixth largest wine producer in the country, according to a 2008 report by the U.S. Department of Commerce.

The proposed law would be a reversal from 2004, when the state banned direct shipping of wine because some legislators thought it did little to promote New Jersey agriculture and potentially allowed for minors to purchase alcohol online or over the phone.

Wineries are largely supportive of this new bill and "will obviously do whatever the state asks," said Rich Small, a spokesman for the Garden State Wine Growers Association, which represents more than 30 wineries and vineyards throughout the state.

Jim Quarella, the owner of Bellview Winery in Buena Borough, said Wednesday that any opportunity a winery has to expand its sales is helpful during this weak economy.

While he declined to discuss his exact revenue, he said business was about flat last year.

The Senate bill also permits manufacturers, wholesalers or retailers of alcohol who are licensed in other states to obtain a so-called "wine direct shipper license" to ship wine here.

"I'm not afraid of the competition," Quarella said.

But the New Jersey Licensed Beverage Association has argued that bars and liquor stores would be financially hurt, and there still may not be enough regulations in place to keep those under age 21 from ordering wine online with a credit card.

The bill does require that the wine being shipped say on the package that it contains alcohol and someone who is 21 or older must sign for it.

Adam Stromfeld, an owner of Joe Canal's Discount Liquor Outlet in Egg Harbor Township, said he is not necessarily against the proposed law and thinks it could help smaller wineries that have trouble finding a distributor.

"I don't know what immediate effect it will have on retailers ... but the way everything is now seems to be working fine," Stromfeld said.

Contact Erik Ortiz:

609-272-7253

EOrtiz@pressofac.com

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