The novel coronavirus crisis and its subsequent impact on small businesses — including Texas’s burgeoning wine industry — is extensive. With tasting rooms still essentially closed (with exceptions), the state’s wineries banded together in July to form a political action committee (PAC), Texas Winery PAC, to educate, advocate, and assemble Texans in support of the industry amid the pandemic. Otherwise, many wineries will be forced to close.
The Texas Winery PAC works to encourage laws — such as fully reopening all wineries — that promote the growth and success of the wine industry. Under Gov. Greg Abbott’s current executive order, wineries, distilleries, and breweries are technically viewed as bars (based on the proportion of alcohol sales), which have to remain closed during this time. “We think that’s a misclassification,” says Brian Heath, co-owner of Fredericksburg winery Grape Creek Vineyards and a member of the PAC. The group is trying to show the state government that wineries are not bars, and that the “one-size-fits-all approach isn’t effective,” according to its website.
There’s been a growing interest in Texas wines. Many wineries rely heavily on direct-to-consumer sales, which are driven by on-site outings and wine clubs. “Guests visit a winery, indulge in the ambience and education, and, afterwards, purchase a bottle of wine,” explains Heath. Since tastings rooms are closed now, tourists and locals don’t visit the wineries, which means sales are low.
This affects Texas farmers too. Many Texas wineries make most of their wine from Texas grapes. This means Hill Country and High Plains farmers are also feeling the implications of the pandemic. Since revenue is low because of diminished sales, many wineries aren’t able to purchase grapes at this time, despite grape contracts. “The snowball is rolling everything,” says Heath.
Then there’s yet another issue that presents a major challenge for wineries: the distributors. Most of the shelf spaces at local chains, such as Spec’s and H-E-B, are controlled by large distributors such as Republic National Distributing Company and Southern Glazer’s Wine & Spirits. These companies tend to represent a large quantity of California — not Texas — wineries. If these distributors shifted their focus to Texas wineries, sales would increase and the financial impact would be tremendous.
Grape Creek, which has been run by Heath and his wife Jennifer since 2006, is lucky and is in a better place than its peers in the state. In response to the pandemic and the executive order closing bars, the Texas Alcoholic Beverage Commission made some allowances, where certain businesses could apply for what is considered restaurant permitting if current and/or future alcohol sales make up less than 51 percent of their total numbers. That allows the Fredericksburg winery, which features an on-site restaurant, to remain open for on-premises services at this time.
Despite these adjustments, the PAC still wants the Texas wine industry to be “viewed as its own industry,” says Heath. Immediately, the committee wants the government to treat all wineries like restaurants irregardless of food sales, allowing them to all reopen for on-site business, which would bring in more revenue and, thus, be able to stay viable.
As for the PAC’s long-term goals, the group wants the government to take the industry more seriously. Heath cites a study by the Texas Wine and Grape Growers Association that claims that the state’s wine industry brings a “$15 billion impact” to Texas. Creating separate laws regulating wineries (as opposed to being lumped together with bars and breweries) would help the industry grow.
Those who want to support the Texas Winery PAC are encouraged to donate directly to their favorite wineries, as well as send letters to elected officials advocating to reopen tasting rooms and wineries at the same capacity levels currently allowed for restaurants, and follow the group on social media.
Texas breweries formed their own organization, the Texas Craft Brewers Guild, in 2008.
Update, September 8, 2:03 p.m.: This article has been updated to reflect that wineries aren’t restricted in direct sales and can sell wine directly to consumers.
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