Committee advances compromise to allow limited out‑of‑state direct wine shipments; Arkansas producers urge protections

Sen. Bart Hester, R–District 33, and Rep. Brett McKenzie described a bipartisan compromise that would create a direct‑shipper license and allow limited shipments of out‑of‑state wines into Arkansas ‘‘wet’’ territories. Sponsors said the measure replaces an older license structure with a new direct‑shipper permit while preserving access and protections for in‑state producers.

Hester said the proposal is narrowly targeted: it would allow limited shipments (he described “one case of wine per quarter” per recipient) and is intended to serve small, niche wineries rather than mass‑market brands. He said the change was negotiated with industry stakeholders and the Alcoholic Beverage Control (ABC) agency to ensure a “soft landing” for local commerce.

Dennis Whitaker, representing Whitaker Wine Cellars and speaking for the Arkansas Wine Producers Council, testified in opposition. Whitaker said the state’s small wineries, grape growers and brick‑and‑mortar liquor stores rely on existing permit structures and raised concerns the bill could expose small in‑state producers and retail licensees to competition from larger out‑of‑state suppliers. Whitaker asked that the existing small‑farm winery permit remain available to Arkansas producers.

Sponsors responded that the bill includes brand‑registration requirements and would keep current in‑state shipping privileges intact; they also said the direct‑shipper license would carry an initial $50 fee and a $25 annual renewal, and that the Small Farm Winery application process and fees would remain effectively unchanged for Arkansas producers who qualify. Hester said the intent is to limit large manufacturers and keep mass‑market wines from being distributed under the new direct‑shipper process.

Committee members asked clarifying questions about how the new licensing differs from the old small‑farm permit, fee levels, and whether larger producers could use the new license; sponsors said the license title changes but that in‑state small producers’ access and the fee structure would remain as before. Dennis Whitaker urged an amendment to preserve the small‑farm permit as‑is, citing the industry’s history and local economic concerns.

After discussion, the committee passed the bill. The hearing record shows a vote in favor but does not include a numeric roll‑call tally in the supplied transcript.

The measure now moves to the next stage of the legislative process; sponsors and opponents said they expect further negotiation on brand‑registration details and on preserving protections for in‑state producers.