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About half the visitors to the Cooper-Garrod Vineyards in Saratoga are from out of state.
Bill Cooper, whose family owns the vineyard, says visitors love the winery. Some buy a few cases of wine, but other out-of-state visitors wanted the wine shipped to them.
Until last month, Cooper had a simple answer for most of them. He couldn't ship to many states in the country because it was illegal. A Supreme Court ruling on May 16 changed all that.
The court ruled that customers can buy directly from out-of-state wineries, thus negating laws in 24 states that prohibit interstate wine shipments. States now have the option of allowing direct shipments from both in-state and out-of-state wineries or banning direct wine shipments altogether.
The ruling has resonated in Saratoga wineries, most of which are small and do not have the financial or marketing muscle to be sold in supermarkets.
"I'm impressed by the Supreme Court decision. Everybody benefits from free trade," Cooper said. "This rule will allow us to fulfill a consumer's request. We're not taking away anyone's market share."
The Cooper-Garrod Vineyards makes about 3,000 cases of wine a year. Cooper estimates that 3 or 4 percent of his sales come from direct shipments. He expects that figure to double in the near future.
"The Supreme Court ruling can be a useful precedent when negotiating with states. Each state can write its own laws for the shipment of alcohol," said Marty Mathis, president of Kathryn Kennedy Winery in Saratoga.
Mathis suggests the Supreme Court ruling has been oversimplified. "Various states can still create a lot of roadblocks. They can ask for annual licensing fees or paperwork obligations," he said.
Mathis said that his winery, like many others in the area, often relies on distributors to sell wine outside the state.
Suzanne Frontz, general manager of Cinnabar Vineyards and Winery in Saratoga, said the ruling would enable small wineries to ship their products across the country. "It will be awhile before the changes take effect. We might see a few changes in 2005 or 2006," she said.
Frontz hopes distributors and small winemakers can strike a happy balance so that both can prosper.
Many vineyard owners say the Internet is the catalyst that has spurred the growth of direct-sale wine. "Before the Internet, orders from out of state were not very common," Cooper said.
Andrea Kyle, who works for Mount Eden Winery in Saratoga, said the decision will give a boost to small wineries. "It's the customers who are going to benefit," she said.
California's wine industry supplies two out of three bottles sold in the United States, according to newspaper reports.
Local wineries want out-of-state wine tourists to develop into long-term customers once they go back home. Cooper says the Supreme Court ruling is the first step in the right direction. At the very least, he has a more positive answer now for his out-of-state customers.
LOCAL WINERIES JOIN FORCES
TO DISCUSS WATER QUALITY
Representatives of 28 Bay Area vineyards participated in a farm water quality planning course held weekly throughout May at the Cooper-Garrod Vineyards in Saratoga. The course was offered by the UC Cooperative Extension and the Natural Resources Conservation Service.
"The owner is responsible for the quality of storm water that runs off the property," said Jan Garrod, vineyard manager at Cooper-Garrod.
All participating vineyards have been given a workbook explaining how to prevent erosion.
"Starting in the hills, anything we do has an impact downstream," Garrod said. "Rain contributes to natural erosion. We also have to be careful about the insecticides and the pesticides that we use."
Garrod said that ultimately such measures would help bring back fish to the creeks and rivers.
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