Sonoma County wine advocates have proposed a new sales fee to fund marketing efforts and fight industry slump. But winery owners say it could scare off consumers.
The Sonoma County Winegrape Commission’s monthly board meeting in Santa Rosa was filled to the brim this week in response to the organization’s call for public comment on its recent proposal to establish a Wine Improvement District in the region.
The Commission, which includes trade association Sonoma County Winegrowers and its fundraising foundation, is among those steering the controversial proposal, which promises to fund marketing initiatives through a self-imposed tax — called an “assessment” by its proponents — on all direct-to-consumer winery purchases.
If approved, the new fee would likely apply to all wine sales, including wine club shipments and special events, as well as merchandise and food purchases in tasting rooms. (Wine purchases at grocery stores, beverage shops and restaurants would be exempt.) Consumers would be responsible for paying the fee unless a winery decides to absorb the cost.
But before that happens, Sonoma County’s wineries will decide whether to move forward with the proposal through a weighted vote based on their annual direct-to-consumer sales.
To pass, the proposal must receive at least 51% of the weighted vote. Each city council must approve the proposal before final approval by Sonoma County Board of Supervisors, according to Gina Reed of Civitas Advisors, the consulting firm leading the proposal. Individual cities can decide whether to participate in the wine improvement district or opt out.
Since the proposal was announced to the public in July, it has sparked vigorous debate within Sonoma County’s wine industry and among consumers over the future of the premier wine region.
Until Monday, it was unclear who spearheaded the initiative. A July press release from the PR agency Fahlgren Mortine stated it was “a joint effort by the Sonoma County Winegrowers and the Sonoma County Vintners.”
But the Sonoma County Vinters Board of Directors emailed members to clarify the nonprofit had “not endorsed, approved, or accepted the proposed WID [Wine Improvement District] initiative.”
At the meeting, Joe Bartolomei, co-owner of Farmhouse Inn in Forestville and a member of the WID steering committee, revealed he had been the “very squeaky wheel.”
“When Santa Barbara launched their WID initiative, I became very concerned because I see them as our competition,” he said. “They’re actively trying to drive customers to their region, which is going to impact us. So I reached out to the Sonoma County Winegrowers and other players early on. I want to see our industries come together.”
Bartolomei, who served on Sonoma County’s Tourism Board for nearly 15 years, said the county’s 2% tourism assessment has enabled “two decades of robust marketing” that’s helped position the region as one of California’s premier travel destinations.”
“The impact has been significant in terms of driving visitation and economic activity,” he said. “With over 400 tasting rooms, the rising tide will lift everyone. The more we collaborate to bring visitors in, the more we all stand to gain.”
If the wine improvement district is approved, a new nonprofit and board of directors would be formed to manage and implement the funds. But Dan Kosta, owner of Convene winery in Healdsburg, argues Sonoma County doesn’t need another marketing organization.
“We already have a tourism board, Sonoma County Winegrowers and Sonoma County Vintners,” he said. “I don’t understand why we would add a fourth entity to increase visitation when that’s already their job.”
Kosta worries the Sonoma County Vintners could dissolve if the wine improvement district is approved.
“Why would anyone want to be a part of a voluntary association if there is another entity doing the same thing?” he asked. “It doesn’t make any sense.”
‘Placing a burden on consumers’
Among the wine improvement district’s most vocal opponents is winemaker Adam Lee of Clarice Wine Company in Windsor. On July 27, he launched a petition challenging the proposal, which has since gained over 700 signatures.
On Monday, Lee was among those who spoke out at the Winegrape Commission’s board meeting.
“The wine community is facing enormous challenges and our efforts are failing to meet them. But placing a burden on consumers in the hope of attracting them is contrary to logic,” he said. “Consumers allow us to exist. They don’t publicly complain about this type of thing — they’ll simply stop purchasing wine.”
In a July 23 letter to Sonoma County Winegrowers’ members, president and CEO Karissa Kruse emphasized the success of wine improvement districts in other regions, such as Temecula Valley.
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