Listing category: "Kentucky"

New DtC Rules In Kentucky For Wineries and Distilleries

On April 13, Kentucky Governor Matt Bevin signed HB 400, a bill establishing new rules for wineries, distilleries, and package retailers to make direct-to-consumer (DtC) sales to Kentucky residents, and for the carriers fulfilling those orders. The bill has an emergency clause attached, which makes it immediately effective. While the bill appears to be a […]

Kentucky Election Day Bill Creates New License for Out-of-State Wine and Spirits Suppliers

All out-of-state wine and distilled spirits suppliers that sell to Kentucky distributors are now required to obtain an “Out-of-State Distilled Spirits/Wine Producer/Supplier License” following the passage of SB 13 in April. Before this bill became effective on June 25, 2013, suppliers still needed to register their brands with the ABC prior to selling to Kentucky […]

Is the Marketplace Fairness Act Fair for Wineries?

In short, yes, for a couple of reasons: 1. Wineries already pay sales tax in most states 2. The vast majority of wineries will likely be exempt from the law So what is it, exactly? Senate Bill S. 743, more commonly known as the “Marketplace Fairness Act“, is a pretty simple bill that would give […]

Notes on Wine Distribution v.32

The latest version of “Notes on Wine Distribution”, by R. Corbin Houchins, is now available. Release 32 includes updates on legislation, litigation and general discussions on available distribution channels for wine. This release includes substantial changes, including new sections on age and identity, facial neutrality, and logistical support services, as well as updates to state […]

Kentucky On-Site Requirement Invalidated, but Questions Remain

On December 24th, the US Court of Appeals for the Sixth Circuit affirmed, in the Cherry Hill case, the judgment of the district court, invalidating the on-site purchase requirement. The district court ruled, pursuant to the Supreme Court’s decision in Granholm v. Heald, 544 U.S. 460 (2005), that the in-person purchase requirement in portions of […]

Caps Off to Dolan's Intentions

In October of last year, wineries began shipping directly to Ohio residents under a new direct shipping permit law. When the provisions of the law in Ohio were first announced, one of the major subjects of controversy was the capacity cap, which only allows wineries that produce less than 150,000 gallons annually to obtain a […]

Kentucky posts permit instructions

Kentucky recently posted instructions for obtaining a Kentucky out-of-state small farm winery license. There are ten steps (actually eight steps – they skipped steps 6 and 8!) that a winery that produces less than 50,000 gallons can follow to receive a license to ship directly to consumers. STEP 1. KRS 243.360 requires you to first […]

Bourbon County, KY – Wet, Dry, or Moist?

We’re getting word that Kentucky will soon make public the requirements for out-of-state wineries to get a small farm winery license for shipping wine directly to consumers. Regardless of the difficulty of the process that Kentucky unveils, wineries will surely face a challenge in keeping track of the 53 dry and 16 “moist” counties in […]

News from Kentucky

The headline said, “State drops out of wine suit: Small operators can ship directly,” but the reported change in direct shipment rights occurred in December of last year. What’s new is that the state has abandoned its appeal, leaving the wholesaler trade association to continue alone in attempting to persuade the Court of Appeals to […]

"New Vintage" of Wine Litigation

There’s an excellent article on law.com titled “New Vintage of Wine Litigation is Fermenting”. The article summarizes the “next wave” of wine lawsuits that will continue to shake up the landscape of direct shipping. New suits and amended complaints filed in the past year are attacking requirements that consumers must purchase wine in person, with […]

Results from Federal District Court in Kentucky

It was pretty good, though it could have been better. Yesterday, Judge Charles R. Simpson III reaffirmed his analysis of last August in the Cherry Hill case, finding that on-site only requirements in the direct shipment law effective on January 1 are unenforceable because they unduly burden interstate commerce relative to in-state direct shipments. The […]

Kentucky Court Opinion and Judgment Posted

The US District Court in Kentucky ruled yesterday on the lawsuit filed by Cherry Hill Vineyards, challenging provisions in Kentucky’s recent direct shipping legislation. Here are links to the court’s opinion [Huber Memorandum Opinion.pdf (324 KB)] and judgment [Huber Order and Judgment.pdf (239 KB)]. An excerpt from the opinion: The court has evaluated the new […]

Terroir II: Another Word Soon from the Court that Decided All Wines Aren’t Alike

A new ruling is expected before the end of the year in the Granholm-based lawsuit that challenges the states’ and wholesalers’ “on-site only” strategy for resisting direct shipment. That line of defense argues it’s equal treatment to restrict all wineries, near and far, to the same limitation of in-person orders (which seems true in the […]

Important ruling in Kentucky expected by year-end

U.S. District Judge Charles R. Simpson III is expected to give a very important important ruling in Kentucky by the end of the year, according to the Louisville Courier-Journal. The ruling will help decide the fate of the Kentucky law that was set to take effect on January 1st. The new law would allow for […]

Terroir in Court

For the first time in post-Granholm legal maneuvering, a court has recognized the geographic distinctiveness of wine as a factor in applying the “level playing field” requirement. Kentucky is one of about eight states that responded to Granholm by authorizing only on-site sales. The argument by the wholesalers and their allies in favor of that […]

A response to the Family Winemakers lawsuit

Doug Caskey, from the Colorado Wine Industry Development Board, responded to our post about the lawsuit in Massachusetts with a lengthy comment. I wanted to republish it in a new post because it is well worth reading. At the risk of sounding like a traitor to the cause of wine, free trade and the American […]

Kentucky appeals court ruling

The State of Kentucky yesterday appealed the court ruling in August that struck down the interstate shipping ban in Kentucky. The State disagreed with the court’s finding that the in-person requirement for purchasing wine is unconstitutional. Thanks to the folks at Stoll Keenon Ogden for the tip and the insight. Their article was used a […]

Kentucky court strikes down interstate shipping ban

A US District Judge in Kentucky struck down the current regulations that allow only Kentucky wineries to ship to Kentucky consumers. Bill Nelson has the full scoop in the WineAmerica News Brief and at their state issues website. As expected, the judge found the discriminatory nature of the Kentucky statutes to be unconstitutional and in […]

Costco-Granholm battle lines forming in Ohio

Ohio wineries selling to state residents operate under a mandatory 33.3% markup system, whether distributing directly or through a wholesaler. Under past law, wineries outside the state could not sell to Ohio consumers at all. To comply with Granholm, the state accepted a consent decree permitting consumers to purchase directly from out-of-state wineries, beginning in […]

Legislation update

There has been a flurry of wine legislation activity around the country recently… Indiana: House Bill 1016 was approved by the Indiana House and Senate and awaits signature from the governor. This is one of the stranger bills out there to say the least. It allows for limited direct shipments from both in-state and out-of-state […]

Kentucky bill passes Senate, would prohibit direct shipments

Senate Bill 82, which prohibits direct shipments in Kentucky, passed the state Senate and now moves to the House. Winery owners claim that this bill would kill the Kentucky wine industry. A second bill in Kentucy that would allow small wineries to ship directly to retailers remains in House committee. This article has some very […]

Competing bills in Kentucky

Two competing bills are alive in Kentucky, but neither are very favorable for wineries. One that made it out of state House committee would only allow onsite sales for small farm wineries. The second made it through the state Senate and would force all wineries to use wholesalers. Read more here.

Indiana (and Kentucky) wine law challenged

Nine Indiana wineries push the courts to allow in-state shipments of wine. Add Kentucky and Indiana to the list of states that will revisit their legislation in 2006.