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TP Lowe

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Finally, wine shipments to Kentucky?

by TP Lowe » Tue Feb 19, 2019 1:15 pm

Direct wine shipments could flow to commonwealth
February 15, 2019240 Views
Sen. Max Wise, R-Campbellsville
FRANKFORT, Ky. – Direct shipment of wine to consumers would become legal under a bill that passed the state Senate today by a 29-5 vote with one legislator abstaining.

The rest is here: https://www.lanereport.com/110617/2019/ ... _campaign=
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Robin Garr

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Re: Finally, wine shipments to Kentucky?

by Robin Garr » Tue Feb 19, 2019 2:42 pm

I saw that, and it makes me hopeful, particularly with Republicans backing it. I read between the lines, though, that the liquor wholesalers are already talking out of both sides of their mouth while they tinker. They're the primary reason this option has never moved in Kentucky until now, and I won't trust them until the votes are in and the bill signed.
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Jon K

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Re: Finally, wine shipments to Kentucky?

by Jon K » Tue Feb 19, 2019 5:24 pm

This has always been more about the interests of the wholesalers and less about the ideology. Hope they can get it through the House before the liquor wholesale lobbyists can stop it.
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Tony G

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Re: Finally, wine shipments to Kentucky?

by Tony G » Wed Feb 20, 2019 7:16 pm

This is timely. I gave my wife a monthly wine club shipment 3 yrs ago. It was really good! 2 yrs into it we received an email from the company saying they could no longer ship wine to us. I got in touch with our State Representative and she said legally they weren’t supposed to do that at all! But we got the wine for almost 2 yrs. She told the local distributors always objected to the shipment of wine to us individually here in KY. Just heard from her and she said this is a Senate Bill but she hopes it gets to the House so she can vote for it. The thing here is they shipped us 2 bottles of really good wine from around the world for nearly 2 yrs before they recieved a cease and desist order. I really hope this thing passes in our legislature and our Governor signs it.
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Re: Finally, wine shipments to Kentucky?

by Eric Hall » Wed Feb 20, 2019 9:10 pm

I’ll speak as someone in the industry about this. I can only speak from the retailer side. I don’t oppose this legislation as written. In fact, it makes common sense to allow KY consumers to get wine that is not available shipped directly to them. If you visit a winery, you should be able to join a club and have it shipped to you. KY retailers and the state are not losing out on sales and tax dollars in these winery to consumer sales.

Where it gets dicey is allowing out of state retailers to ship liquor, wine and beer into the state when it is readily available here. The state, wholesalers and local retailers lose out on sales and tax dollars in this scenario. It’s also feasible that a large online retailer could skirt the 3 tier system along with many of the state/local taxes and deliver booze to your house for less than wholesale cost to local retailers.

The bill has passed the senate and will be heard in the house soon. There is a good chance it will pass.
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Re: Finally, wine shipments to Kentucky?

by Mark R. » Wed Feb 20, 2019 9:45 pm

I'm certainly glad to see that this new law has a good chance of getting passed it should've gotten passed a long time ago, it's an ancient law from a time past. That being said even with the law on the books I have ever heard of any enforcement ever happening. Even the case of Tony pointed out was just because the seller didn't want to ship it to Kentucky anymore, he said they got a cease-and-desist order but I'd like to know if they really did or just used it as an excuse.

We've never had any problems getting wine shipped to us. We received quite a bit of pottery from California and somehow it must've had a leak because it sloshed when moved! :D
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MarieP

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Re: Finally, wine shipments to Kentucky?

by MarieP » Thu Feb 21, 2019 9:23 am

I know some people who ordered a few bottles of wine from a winery out of state, and the first shipment was “undeliverable at address” but no notice was received. It was inquired about, and another shipment was sent, but this time it worked. So this is illegal, huh? Didn’t realize.
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Re: Finally, wine shipments to Kentucky?

by Jeff Cavanaugh » Thu Feb 21, 2019 9:29 am

Eric Hall wrote:Where it gets dicey is allowing out of state retailers to ship liquor, wine and beer into the state when it is readily available here. The state, wholesalers and local retailers lose out on sales and tax dollars in this scenario. It’s also feasible that a large online retailer could skirt the 3 tier system along with many of the state/local taxes and deliver booze to your house for less than wholesale cost to local retailers.


Since the 3-tier system is just an example of crony capitalism and an excuse for the state to tax the same thing 4+ times, I'm really OK with it being skirted.
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Re: Finally, wine shipments to Kentucky?

by Steve Eslinger » Thu Feb 21, 2019 10:05 am

Jeff Cavanaugh wrote:
Since the 3-tier system is just an example of crony capitalism and an excuse for the state to tax the same thing 4+ times, I'm really OK with it being skirted.


Yep, I'd call that a feature, not a bug. A welcomed one at that.
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Re: Finally, wine shipments to Kentucky?

by Robin Garr » Thu Feb 21, 2019 10:30 am

Jeff Cavanaugh wrote:Since the 3-tier system is just an example of crony capitalism and an excuse for the state to tax the same thing 4+ times, I'm really OK with it being skirted.

When Prohibition prevailed, the Mob ran the liquor business. After Repeal, it moved right into the three-tier system. The Supreme Court tried to clear it up with Granholm v. Heald, but apparently it takes more than one slap to clean things out.
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Len Stevens

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Re: Finally, wine shipments to Kentucky?

by Len Stevens » Fri Feb 22, 2019 1:28 pm

I'm saying a big prayer to "baby Buddha"...currently we are 1 of only 5 states that does not allow direct shipment. In some ways, we are so insanely behind the times...and this is 100% wholesale driven!
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Len Stevens

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Re: Finally, wine shipments to Kentucky?

by Len Stevens » Fri Feb 22, 2019 1:29 pm

Old signature...sorry. I'm currently a private wine consultant.
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Jay M.

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Re: Finally, wine shipments to Kentucky?

by Jay M. » Fri Feb 22, 2019 9:57 pm

Len Stevens wrote:Old signature...sorry. I'm currently a private wine consultant.

Thanks for the update on your status, Len - would like to hear more about your consulting biz. Is that Rochioli as your avatar?.
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Re: Finally, wine shipments to Kentucky?

by Eric Hall » Tue Feb 26, 2019 10:22 pm

The wine shipping bill (SB 99) is on life support. The KY distillers association wants it amended to allow KY distilleries to ship product directly to consumers.

By the way, laws passed in 2018 already allow them to but only if a customer visits the distillery.

They are calling it “only fair”.

Speaking of fair, house bill 200 will allow distilleries to sell certain limited brands only at the distillery. Eliminating the requirement to make them available to retailers. Bad news if you want to buy limited edition bourbon at your local retailer.
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Re: Finally, wine shipments to Kentucky?

by Mark R. » Tue Feb 26, 2019 11:30 pm

Eric Hall wrote:The wine shipping bill (SB 99) is on life support. The KY distillers association wants it amended to allow KY distilleries to ship product directly to consumers.

By the way, laws passed in 2018 already allow them to but only if a customer visits the distillery.

They are calling it “only fair”.

Speaking of fair, house bill 200 will allow distilleries to sell certain limited brands only at the distillery. Eliminating the requirement to make them available to retailers. Bad news if you want to buy limited edition bourbon at your local retailer.

Why is the is a request from the KY distillers putting the bill on life support? It sounds fair and I don't see why it will cause any major problems to anyone except the wholesalers/distributors who won't get their cut.

I also like the idea of allowing the distilleries to sell limited-edition products directly to the customers instead of going thru the system. It will probably actually make it fairer to the customers.
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