Maryland comptroller wants to allow direct shipments of wine

Posted: 2:39 pm Tue, December 21, 2010
By Ben Mook
Daily Record Business Writer

ANNAPOLIS — If state lawmakers follow the recommendations of a report released Tuesday, Maryland residents will soon be able to buy wine from out-of-state and have it shipped to them directly.

After reviewing direct wine shipping practices and laws in 37 states and the District of Columbia and interviewing hundreds of people, the Comptroller of Maryland’s office is recommending legislators draft a law that would allow the direct shipment of wine to state residents.

But Comptroller Peter Franchot said there should be some caveats — including only allowing purchases from individual wineries.

“It’s not money they’d spend in Maryland anyway,” said Jeff Kelly, director of field enforcement for the comptroller’s office.

That would mean a Maryland resident could order from an out-of-state winery, but could not order from an online wine retailer. The report also recommends that Maryland-based wineries be allowed to sell to consumers in other states.

Franchot, who made a point of saying that he personally supports direct shipping, said he saw the issue as one being driven by consumers.

“For years, they’ve been knocking on doors saying, ‘We’d like this,’” he said.

Another stipulation the report recommends is limiting consumers to ordering 12 cases, or 144 bottles, in a single year. Sunday deliveries of wine would also not be allowed.

Franchot said another issue often raised is availability of alcohol to minors. He said in the other states that allow direct shipping, problems have been minimal, and controls like mandating an alcohol transportation permit for delivery companies and requiring shippers to put identifying stickers on packages would prevent problems and increase the ability to track down any problems.

“We deplore underage drinking,” Franchot said. “But, I have never found a young person that was going to order wine over the Internet if they were determined to get hold of it. But, obviously, you want to cut off all avenues.”

He said the right bill would give wine consumers flexibility to find products not readily available in Maryland without stealing too much business from state retailers.

The recommendations would also give state wineries a new potential stream of revenue, growing the industry.

“It’s a very positive report from our point-of-view,” said Kevin Atticks, executive director of the Maryland Wineries Association. “And, most importantly to us, the concerns raised against the bills over the years are unfounded. None of the horrible, scary things will come true if this allowed.”

The report’s findings were supported by those who have lobbied against earlier direct shipping bills.

“I think this is the correct direction,” said Bruce Bereano, a lobbyist for the Licensed Beverage Distributors of Maryland. “Rhetorically speaking, why would lawmakers want to pass a bill that would hurt local businesses? We’re talking about Maryland people, Maryland companies and Maryland jobs.”

Previous bills have not been successful mainly because they had no restrictions on online and direct shipping sales, allowing direct competition with state businesses.

“I look forward to seeing what legislation will be introduced,” said Nicholas G. Manis, a lobbyist for the Maryland Beer Wholesalers Association. “Our hope is that it deals with products that have limited availability in the state, and this will be an avenue for people to get them without impacting distributors.”