Free Trade Facts

Direct Wine Shipment Facts

  • Only 3 States Require Face to Face before shipment: Indiana, Kansas and Arizona (Federal District Court Invalidated KY’s Face to Face)
  • 37 States Allow Direct Wine Shipments
    States Allowing Direct Shipments Generally Reported “Few, if any, Problems with Interstate Direct Shipments of Wine to Minors." (FTC Report 31)
  • “Enforcement of the Face-to-Face Transaction Requirement Will Depend on Voluntary Compliance by Out-of-State Wineries - or Extensive Travel by the State Excise Police”.
    (Page 49 of US District Court, Southern District, Baude vs. Heath)

Free Trade Impediments Hurt Indiana Wineries

  • Most Indiana Wineries Shipping Totals Were Cut by 2/3rds or More
  • Only half of Indiana Wineries have Direct Sellers Permit
  • Terre Vin Winery (Rockville) Closed at End of 2006 – Owner Cited 2006 Law as 100% Reason for Closure
  • Increased Costs to Wineries to Comply with New 2006 Law

Free Trade Pressures working against in-state wholesalers

  • Wine Connoisseurs Want Wine Shipped to Their Homes
  • Out-of-State Retailers want to Ship to In-State Consumers
    (2008 US District Courts in TX & MI ruled in favor of out-of-state retailers, allowing them to ship to TX and MI consumers)
  • Out-of-State Wholesalers want to Sell to In-State Retailers
    (2007 US District Court in TX ruled in favor of out-of-state wholesalers that previously had to wait one year to be licensed)
  • Big Box Stores Want to Buy Directly from Wineries
    (2006 US District Court in WA ruled in favor of a Big Box Store allowing out-of-state producers to sell directly to WA retailers)

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  • Indiana Wine is supplemented with grapes from New York, Midwest & West Coast
  • Indiana Wineries produce Award-Winning Wines
  • Indiana Wineries attract over 2 Million annual visitors