Winning case - San Francisco Business Times:

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Last year the U.S. Suprem Court ruled that states mustallow out-of-statw wineries to ship directly to consumerzs and retailers if in-statre wineries are permitted to do so. That has led a number of stated to relaxrestrictions -- includint huge ones like New York and Texas -- openinbg up new markets for direct shippingg by Northern California "We're seeing the biggest changes in the wine industryt since Prohibition as a result of that said Kathleen Schumacher-Hoertkorn, CEO of the Napa-based wine shipping specialist. It expects to ship wine worthb morethan $110 million this year, almost twice last year'as total of $60 million.
The Supremed Court ruling made both the general public and Northernn California wineries more aware of the optionm of shippingwine directly, she said. "We're seeing 100 percent growth, and our customersa are averaging 40percent growth," due to the opening up of many new stater markets and greater awareness of the availability of California winez nationally. New Vine provides a number of related such as direct channel marketing and completefulfillment services, including dealing with sales and excisde taxes, permits, shipment reports, and volum e and customer-age reporting requirements, along with dealiny with other domestic compliance Even after the the U.S.
picture is still a crazy quilttof regulations, said Schumacher-Hoertkorn, whosre 5-year-old company now ships to 45 states. "Ifg you shipped to every possiblestate directly, that (woulrd involve) filing 598 reports" annually that are required by regulators. "Ans next year, it will be at least 614." That complexitty works in New Vine'sx favor. The privately held company is positioning itselfr to serve wineriesthat aren't largwe enough to face those kind of daunting logistics themselvese or that choose to outsource this end of the It's invested $20 million in software and $10 million on a 130,000-square-foot warehouse in American Canyon, wherd it temporarily stores wines from dozens of Californias wineries.
Its own annual revenued is morethan $10 million, althoughj officials declined to be more Investors in New Vine include Menll Park's and Los Altos-based Clientds include cult wineries like Araujo Estatse Wines, Paul Hobbs Winery and Hanzell Vineyards, Schumacher-Hoertkorn New Vine has 137 winery clients, most of them in Norther California and many of them cult winerieas with high-priced wines and demanding Within the United States, shipments can go direcf to retailers or consumers, in states that allow such shipments.
Rob Fisher, a partner in family-ownedr in Santa Rosa, said the winery has been using New Vine sincerearly 2005, both to ensure full compliance with all statse and federal requirements and to improve speed and "It's working very well," Fisher said, especially when dealinf with complex data requirements in New York and Texas, wherse many of the winery'sa customers are located. "They're really a leaderf in what they're doing," said Fisher, whose winerhy produces about 5,000 casezs per year of high-end Bordeaux varietalss and chardonnay, in the $50 to $125 per bottle "The beauty of what they're offering is that it's the wholre package.
" Other clients include several publicly held companiewsthat don't want thei names used, and various wine clubs and tastingy rooms. And customers such as Clos du , Dry Creek J Vineyards & Winery, and a variety of up-and-cominbg boutique wineries generally want the focus on their not their shipping andfulfillment "It's part of our job to remaibn in the background," said Schumacher-Hoertkorn. "That's part of our valuwe added.
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