By STAN MADDUX

Indiana Correspondent

INDIANAPOLIS, Ind. — A bill aimed at helping small wineries by eliminating the middleman is advancing through the Indiana Statehouse.

John and Deb Miller, who raise grapes at their 30-acre Blackhawk Winery outside Sheridan, believe they can expand their operations if allowed to sell directly to liquor stores and other alcohol sellers. Deb Miller said the ability of small wineries to grow is limited by current state law requiring alcoholic beverages from all producers having to reach store shelves via distributors.

She believes distributors seeking higher profits from moving larger volumes don’t work as hard to sell retailers on offering products from small wineries. “It’s very, very difficult to get into those markets when you’re so teeny,” she said.

Senate Bill 609 authored by Sen. Ronald Grooms (R-Jeffersonville) allows wineries selling fewer than 12,000 gallons a year to become a wholesaler.

The bill on was approved April 10 by the House Committee on Public Policy, then two days later supported by a wide margin in the full House. It’s back for possible revision in the Senate, where it was originally approved Feb. 21 by a 43-6 vote.

Miller said giving small wineries the ability to sell directly to liquor stores and restaurants allows them to market their own products and start building a name for themselves instead of relying on a distributor to do it. She said her company – making about 700 gallons of wine annually – might be able to grow its sales enough to have to go through a distributor again if the legislation clears both chambers and is signed by the governor.

“I think we just need help in getting over that hump from when you’re just starting out,” she said, adding a percentage of their sales is also made at farmers’ markets.

Wilbert Best, owner of Best Vineyards Winery at Elizabeth, said the legislation is critical to the survival for many small-scale producers. “Something is going to have to give or the wine industry in Indiana is going to collapse in the state before long,” he said.

He noted not only are some distributors reluctant to carry low-volume product, but finding a distributor can be difficult, with just a dozen or so in the whole state.

“I understand the side of the distributor; I really do. But it’s kind of like the chicken and the egg thing. They want to deal with a large winery. How do you become a large winery if you can’t put your product on the store shelf?”

Best said it wouldn’t make sense for him to distribute much of the 5,000-10,000 gallons of wine he makes annually because of having a distributor willing to take his product to distant cities like Indianapolis and Fort Wayne. He would like the option of delivering his product to liquor stores and other customers close to home.

Right now, he said his distributor takes his wine to the Indianapolis area for storage, then later heads back for delivery to local carriers. The return trips don’t make sense when Best could simply make the short trip to customers directly from his winery.

The legislation would also make it easier for small wineries to cater special events such as weddings. Currently, the law also doesn’t allow wine makers to deliver to special functions, and time getting product from a distributor can be an issue especially if an event comes on short notice.

“Just being able to take a case over to a store that wants it or something like that would be huge help,” Best explained.

He grows some of the grapes used in his wine but he plans to import more because of extreme cold the past few winters damaging quite a few of his vines. He’s replacing them with blackberries, which can better withstand temperature extremes. Blackberries, strawberries, raspberries, and plums are also brought in by Best, who makes vodka, rum, and gin to sell in his tasting room.

Best said he hopes Indiana lawmakers will allow small-scale producers of distilled grain to again offer samples of spirits at farmers’ markets after taking away that capability in 2018. He’s also hoping the door will open someday for spirits from small producers to be on the shelves of retailers.

He is capable of making up to 1,000 gallons of vodka a week if enough demand could be generated to support it. “The equipment is sitting there pretty much idle and unused at this point because we have no path to market,” he pointed out.