Bill would allow Idaho retailers to buy out-of-state wine directly from wineries

Published 3:15 pm Thursday, February 1, 2024

Idaho retailers would be able to acquire out-of-state wines via direct shipment under a bill introduced in the state legislature.

Retailers who want to carry wine from another state now must have the product shipped to an Idaho distributor, who in turn delivers it to the retailer, said bill sponsor Sen. Dan Foreman, R-Viola.

Senate Bill 1230, printed and referred to the State Affairs Committee, would allow shipment directly to a retailer in addition to the already authorized use of a distributor.

“A number of my constituents said other states don’t do it that way” and allow a winery to directly ship to a retailer, he said. Idaho wine producers can ship to Washington retailers directly, for example.

The proposal aims to help small retailers reduce cost and increase flexibility, Foreman said.

Though the bill would “cut out the middleman,” the impact on distributors “should be fairly small,” as many retailers likely would continue to use distributors, he said.

Distributors “do provide a service, and one service is convenience,” Foreman said.

The proposal applies to retailers and restaurants. Those who choose direct shipment would be required to meet the same record-keeping standards required of distributors.

“A lot of small businesses may not want to avail themselves of this option, but it would be there,” Foreman said. The proposal would provide “a little flexibility.”

The direct-shipment option may appeal to an Idaho operator who wants a small volume of a neighboring state’s wine that is generating customer interest, he said.

“They could say, ‘I can get that. I don’t have to contact my distributor, who may not store it or distribute it in Idaho,’” Foreman said.

Jesse Watson, an established winemaker in the Willamette Valley of Oregon, is developing Sunset Valley Vineyards in the Nyssa-Adrian, Ore., area, near the Idaho border. He aims to eventually sell wine in growing southwest Idaho.

“It would be nice to be able to self-distribute without having to go through a distributor,” he said. “You wouldn’t have to rely on the distributor for representing your wine and marketing your wine.”

A distributor may have many brands, “and the small guy can get lost in the volume brands,” Watson said.

Distributors can help their customers manage multiple wines, he said.

But in growing his brand, “I have to shake hands anyway,” Watson said. “Why pay a distributor to rep it?”

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