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Small Va. Vintners See Hope Amid Marketing Drought
He said the Virginia court ruling and similar opinions elsewhere have "been devastating to some wineries, which have lost up to 30 percent of their revenue."
The General Assembly responded last year by creating Virginia Winery Distribution. Funded in part with start-up money from the state, the company is intended to serve as a lower-cost wholesaler focused exclusively on small local wineries. It will permit winemakers to market and distribute their own wine, much like they did before the court ruling.
Parker, Nelson and others said it remains to be seen how successful the system will be.
It is complicated and novel enough to be open to more legal challenges. For example, under the law, once a winemaker takes an order, the wine must "come to rest" in a part of the winery leased to the distribution company before it can be delivered. Some winemakers use a dog cage or a closet to indicate the part of their winery that is leased to the distribution company. Parker uses a small shelf.
The point, Bierne said, is to allow the small wineries to flourish without eliminating the requirement that all wine go through a wholesaler.
If successful, the system could be a model for other states, Nelson said.
"We're waiting with bated breath to see what will happen," Nelson said. "We certainly hope this will be a grand success and wineries can continue to thrive."



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