Virginia wine — supported by strong consumer laws
Virginia’s wine industry is on a roll, and one of the factors driving growth are some of the most wine-friendly consumer laws in the country. Virginia is one of seven states to win a perfect A+ rating from the Virginia Wine Consumer Coalition in its 2013 state-by-state report card on consumer access to wine.
“Wine consumers benefit and are well served when the laws of their state allow for easy access to wine products and provides for convenience in using and accessing wine products,” states the report. However, “nearly every state imposes restrictions of one sort or another that deprive wine consumer of access to the wines they want,” when they want and where they want.
The study graded states by six criteria (in order of importance to consumers):
- Ability to have wine shipped to home from any winery
- State monopoly on the wine sales
- Ability to have wine shipped to home from any wine retailer
- Ability to purchase wine on Sundays
- Ability to bring wine into a restaurant and drink with a meal
- Ability to purchase wine in grocery stores
In a press release, Governor Bob McDonnell put an economic-development spin on the ranking:
Virginia wines are in more demand now than ever, setting an all time record for the most recent fiscal year at 511,000 cases sold. The AWCC report confirms that thanks to efforts across the Commonwealth our consumers know what great wines we produce here in Virginia and they can find them in the many places they shop. Increased exposure for Virginia wines drives greater sales and means more good job opportunities for our citizens at our wineries, in wine tourism and throughout our rural regions where many of our vineyards are located.
Bacon’s bottom line: The best path to economic development is creating a favorable legal and regulatory climate, not by the granting of state subsidies and tax breaks. At present, wine is a niche agricultural product in Virginia not regarded (outside of Virginia itself) as a competitive wine-producing region. (See these January 2012 Virginia Wine Board findings.) However, the perception is improving, at least locally. The eat-local movement is a plus, and winery tours are growing in popularity. Critically, Virginia retailers are becoming bigger fans of Virginia wines.
State policy minimizes barriers between Virginia vintners and Virginia consumers. Excellent. But, wisely, the state is not trying to force-feed (so to speak) the growth of the industry through subsidies and tax breaks. The industry will prosper based upon its ability to produce quality wines at a competitive price, which is how it should be.
Update: Turns out that an individual and corporate income tax credit up to $250,000 is available for Virginia farm wineries and vineyards “in an amount equal to 25 percent of the cost of all qualified capital expenditures.” (Hat tip: Larry Gross). So much for a level playing field.
— JAB
