Tag Archives: SB 1101

New California Law to Allow Out of Bottle Wine Tastings at Instructional Events

25 Aug

Senate Bill 1101, recently passed unanimously in both the California Senate and Assembly, has now been made official by Governer Schwarzenegger. The new legislation will amend the previous policy that forced wineries holding winemaker dinners or instructional events at retail premises to serve wine straight from the barrel or tank, and not from bottles. This rule was part of a general scheme under the Alcoholic Beverage Control Act to prevent wine and other alcohol producers from gifting bottles. The purpose of rules such as this trace their descent to post-Prohibition “Tied-House” restrictions that required a separated three tier system of alcohol sales (manufacturer, distributor, and retailer being independent entities). This separation was meant to prevent monopolization in the alcohol business, promote temperance, and ensure proper tax collection by certifying that sales were conducted through the proper channels.

But the alcohol sales environment of today is much different than in the past, with exceptions in 37 states (including California) allowing a broad range of alcohol producers the ability to sell directly to customers or retailers outside of the three-tiered system.  Today only a handful of truly large alcohol beverage companies exist, primarily Constellation, Diageo, and Gallo here in the U.S., whom, due to pressure and a close eye from the many regulatory agencies, follow tied-house restrictions fairly carefully.  Today much of the power in the industry has been concentrated in large alcohol distribution companies and major retail stores such as Costco and Trader Joes, that many times dictate the business models of smaller wine producers.  This power shift is one reason so many states now allow small winemakers to sell directly to consumers. Further, it makes overly burdensome measures like forcing winemakers to transport wine directly from the barrel to attendees of an instructional event less meaningful.

The new plan will limit tastings at these events to three per person, and will retain the rule that disallows the sales of bottles and transfer of gifts or free goods to consumers at these events.

Here is a link to the bill itself

Image credit to Carlos Porto / FreeDigitalPhotos.net

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