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Wineries and wholesalers alike applaud federal court's latest ruling on Virginia ABC laws. Date published: 9/13/2006 By CATHY JETT By CATHY JETT ANN HEIDIG, president of the Virginia Wineries Association, was thrilled when a federal appeals court ruled yesterday that the state's ABC stores can once again limit their wine sales to Virginia-made products. Many of the smaller farm wineries across the state suffered a double-whammy last year when a federal judge ruled it was unconstitutional for Virginia wineries to self-distribute and for the state's ABC stores to sell only Virginia wines. Afterward, the state-run liquor stores did not restock their shelves with wine. "We thought if we could at least keep the ABC stores, that would provide some outlet other than tasting rooms and festivals for some of the wineries that are too small to attract a distributor," said Heidig, who co-founded Lake Anna Winery in Spotsylvania County. "You don't need a distributor to sell to ABC stores." According to a survey the association conducted last year, the average production size at Virginia's 110 wineries is about 2,500 cases. They need to produce between 3,000 and 5,000 cases in order to attract the attention of most wholesalers and make using them feasible. Smaller wineries such as James River Cellars in Glen Allen relied on ABC stores instead to make their wines available statewide. Sales there of its Chambourcin, Chardonel and other wines accounted for 20 percent of James River business until last year's ruling against self-distribution went into effect July 1 of this year. "The loss of that [ABC selling only Virginia wines] was, for us, almost as devastating as the loss of self-distribution," said manager Mitzi Batterson. She said the winery cut back on the amount of grapes it buys from other vineyards and re-evaluated its plans for growth. The 4th Circuit Court of Appeals decision, however, means that customers who buy James River Cellars wines at its tasting room or such events as next month's Fredericksburg Wine Festival now will be able to pick up additional bottles later at their local ABC store. "Virginia's ABC Board is not necessarily going to move or market our wines, but customers will know that if they go in, and can't find it, they can order it," Batterson said. "That's a huge issue for us."
Date published: 9/13/2006
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