California Wineries Expect Big Profits from Texas


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(Modesto, CA)
Wednesday, May 11, 2005

California producers had been frustrated for years by a Texas law that prohibited direct shipments of wine to residents in certain areas of the Lone Star State.
But the legislation signed into law this week by the governor of Texas, creates a potentially lucrative market for California wineries according to Steve Gross of the Wine Institute.

"Texas is the fourth largest wine consuming market in the U-S and it opens up the entire state for shipping."

Jeremy Benson a spokesman for an organization of independent wineries says small to moderate sized operations stand to benefit the most.

"In general direct shipping has a disproportionately positive affect on small and medium sized wineries, because those wineries ship a larger percentage of their total production to consumers."    
       
California wine producers are awaiting rulings from the U-S Supreme Court that could open up New York, Michigan and Florida to direct shipping.

(Photo courtesy: Free the Grapes)