Committee passes bill to allow limited out-of-state wine shipments; Arkansas wine producers urge revisions

Senator Bart Hester, joined by Representative Brett McKenzie and other sponsors, told the committee the bill is a negotiated compromise that will open a limited direct-shipper pathway for out-of-state wineries while preserving protections for in-state producers. Sponsors said the bill creates a new direct-shipper license that replaces the small-farm winery license name but retains the same application and fee structure for in-state small wineries.

Under the change described by sponsors, out-of-state wineries would be allowed to ship in a limited quantity — described in committee as one case per quarter — to "wet" territories in Arkansas (not to "dry" territories). Sponsors said brand registration provisions in the bill will keep large national producers from using the new license to ship mass-retail wines into the state. Senator Hester said the initial license fee is $50 with a $25 annual renewal for qualifying small wineries.

Dennis Whitaker, representing Whitaker Wine Cellars and the Arkansas Wine Producers Council, spoke in opposition. Whitaker said the bill could harm in-state grape growers, family-owned package stores and small wineries that have grown under the current small-farm winery structure. He noted the small-farm winery permit historically cost $25 per year and urged lawmakers to preserve the existing protections for small in-state wineries. Whitaker asked legislators to consider modifications to avoid harm to Arkansas producers and local retailers.

Sponsors responded that the bill preserves in-state shipping rights for Arkansas wineries and includes brand-registration language intended to prevent large manufacturers from exporting products under the new license. The committee took a vote and the bill passed by voice vote.