Louisville, Kentucky (March 11, 2008) – In addition to helping grow Kentucky’s wine industry by opening up new markets, state lawmakers could add “new money” to the state’s coffers without raising taxes if the Kentucky General Assembly enacts legislation permitting grocery stores to sell wine. House Bill 585 was recently introduced by House Speaker Pro Tem Larry Clark of Louisville to allow grocery stores to sell wine in communities where package alcohol sales are currently allowed.

Grocery Sales of Wine Would Have Significant Economic Impact on Kentucky

$20 Million in New Tax Revenue Projected During the First Two Years; $59 Million over the First Five Years

Louisville, Kentucky (March 11, 2008) – In addition to helping grow Kentucky’s wine industry by opening up new markets, state lawmakers could add “new money” to the state’s coffers without raising taxes if the Kentucky General Assembly enacts legislation permitting grocery stores to sell wine.  House Bill 585 was recently introduced by House Speaker Pro Tem Larry Clark of Louisville to allow grocery stores to sell wine in communities where package alcohol sales are currently allowed.

Kentucky is one of only 16 states that do not allow grocery stores to sell wine.  All but one of the seven states that border Kentucky permits wine sales in grocery stores and the single exception, Tennessee, is considering legislation this year to permit these sales.  The change in Kentucky law would add $59 million in additional tax revenues in the first five years, including $20 million during the next budget period, according to information released today by the Kentucky Wineries Association and the Food with Wine Coalition.

According to Luke B. Schmidt, consultant to the Food with Wine Coalition, Kentucky’s grocery store industry expects a significant increase in the sale of wine above the present level in the Commonwealth if grocery stores are allowed to sell wine.  Schmidt pointed out that increased sales will result in significant increases in tax collection by the Commonwealth.

Schmidt said the Coalition used historical national sales data and experiences from states which are similar to Kentucky in terms of demographics to project that wine sales will grow by nearly 50% in Kentucky during each of the first two years following the enactment of the law.  Beginning in Year Three and going forward, the industry expects that wine sales will increase by nearly 10% annually, which is consistent with the national average.

At present, wine is subject to four direct state taxes in Kentucky: the Wholesale Tax (paid by the wholesaler), a Consumption Tax (paid by the wholesaler), an Inventory Tax (paid by the retailer), and an excise tax (paid by the winery).

The passage of HB 585 will also have a “trickle-down” effect in Kentucky in terms of collection of other taxes.  New jobs will be created due to increased wine sales in Kentucky in the areas of warehousing, shipping, wine distributor personnel, grocery store personnel, etc.  More people will be required in order to handle the added volume that HB 585 is expected to create.  As new people are added to the various positions, additional state and local income taxes will be collected.

In addition, Kentucky’s 53 wineries will see improved sales from increasing numbers of visits by consumers as a result of the new interest in Kentucky wines that HB 585 will create.  This will also have a positive impact on tax collection in Kentucky.  Finally, agri-tourism and related purchases by visitors to wineries will add additional tax dollars toKentucky’s coffers.  A summary of all projected incremental taxes that HB 585 is expected to create is listed in the chart below:

Eddie O’Daniel, President of the Kentucky Wineries Association commented, “Increased sales of wine in Kentucky will directly benefit the 53 wineries and farm gate grape sales of vineyards which are located across the Commonwealth.  Our numbers clearly indicate that not only do Kentucky’s farmers and wineries benefit, but so does the Commonwealth.”

The Kentucky Wineries Association is a not for profit organization that was established in 2007.  The Association’s members include 11 of Kentucky’s leading wineries which produce approximately 75% of all wine made in the Commonwealth.  The Association is developing a comprehensive marketing campaign which will include a new Web site in the near future.

The Food with Wine Coalition is a not for profit organization that was established in 2007 by Kentucky’s grocery store industry.  The Coalition’s purpose is to educate and inform those living in Kentucky as to the advantages of allowing grocery stores to sell wine in areas of the state where package sales are currently permitted.  Interested parties are invited to learn more about the issue by visiting the Coalition’s Web site (www.foodwithwine.org).

Note: members of the media may obtain an electronic version of the Food with Wine Coalition’s logo and the Kentucky Wineries Association logo by contacting Luke Schmidt (502.292.2898 or via electronic mail, lbschmidt@lbschmidt.com).

Louisville, Kentucky (March 4, 2008) – The Kentucky Wineries Association and the Food with Wine Coalition responded today to misleading statements made by liquor store owners during a press conference held by the two organizations yesterday in Louisville. The statements were made in opposition to House Bill 585, a measure which, if passed, will revise existing Kentucky law to allow grocery stores to sell wine in counties where package alcohol sales are currently allowed.

Kentucky Wineries Association, Food with Wine Coalition Respond to Misleading Statements Made by Liquor Store Owners

Louisville, Kentucky (March 4, 2008) – The Kentucky Wineries Association and the Food with Wine Coalition responded today to misleading statements made by liquor store owners during a press conference held by the two organizations yesterday in Louisville.  The statements were made in opposition to House Bill 585, a measure which, if passed, will revise existing Kentucky law to allow grocery stores to sell wine in counties where package alcohol sales are currently allowed.

During the press conference yesterday, several liquor store owners stated that grocery stores would have an unfair advantage if HB 585 passes due to the fact that liquor store employees are “required” to be 21 years of age and that grocery store employees do not have such an age requirement and as such, 18 year olds would be allowed to sell wine.

Luke B. Schmidt, consultant to the Food with Wine Coalition stated, “This statement simply isn’t true.  Current Kentucky law (KRS 244.087) specifically permits a person that is at least 18 years old to “stock, arrange displays, accept payment for and sack malt beverages, under the supervision of a person 20 years of age or older,” with no distinction made as to type of store.”

“Furthermore, existing law and regulation (KRS 244.090 and 804 KAR 5:030) clearly states that a person must be 20 years old in order to sell wine,” commented Schmidt.  “This provision covers grocery stores that today sell beer and it will apply when grocery stores are allowed to sell wine.”

Bottom line: today 18 and 19 year olds are not allowed to sell wine and HB 585 will not allow individuals less than 20 years of age to sell wine in the future.

House Bill 585 simply seeks to create a new license which will allow grocery stores to sell wine.  House Bill 585 in no way amends existing law with respect to who can sell wine in any type of outlet.  House Bill 585 does not contain any language concerning the age of a person who sells wine.

Other recent and misleading statements made by liquor store owners include:

• The grocery store industry seeks to modify or dissolve the current three tier distributor system

According to Eddie O’Daniel, President of the Kentucky Wineries Association, “Absolutely none of the language in HB 585 calls for any type of modification or elimination of the existing farm to market distribution system for wine.  The existing system serves the needs of the market and we are not seeking to make any changes whatsoever.”

• House Bill 585 will allow wine to be sold in dry counties

The Food with Wine Coalition and the Kentucky Wineries Association respect Kentucky’s long-standing tradition of local option.  Simply put, nothing in HB 585 would allow for the sale of wine in any dry county.  Only the voters in counties which are presently dry can change the status of the county through a local option election.  HB 585 will allow the sale of wine in grocery stores only in counties which currently allow the sale of alcoholic beverages by the package.

The passage of HB 585 will bring many benefits to the Commonwealth, including increased demand for Kentucky-grown grapes and Kentucky-produced wine, and, increased tax revenue in the amount of $55 million over the first five years once the law has been enacted.  Kentucky’s food stores are ready to do their part to promote and sell Kentucky-produced wine in grocery stores in counties which allow the sale of alcoholic beverages by the package.

The passage of HB 585 will open up competition for consumers and eliminate the monopoly that liquor stores currently enjoy when it comes to selling wine.

Luke B. Schmidt stated, “Consumers have asked time and time again for the opportunity to purchase wine in grocery stores to pair with their favorite foods.  Consumers benefit when they have more choices.  Kentucky’s grocery stores welcome the opportunity to compete for the consumer’s dollar with liquor stores.”

The Kentucky Wineries Association is a not for profit organization that was established in 2007.  The Association’s members include 11 of Kentucky’s leading wineries which produce approximately 75% of all wine made in the Commonwealth.  The Association is developing a comprehensive marketing campaign which will include a new Web site in the near future.

The Food with Wine Coalition is a not for profit organization that was established in 2007 by Kentucky’s grocery store industry.  The Coalition’s purpose is to educate and inform those living in Kentucky as to the advantages of allowing grocery stores to sell wine in counties which allow the sale of alcoholic beverages by the package.  Interested parties are invited to learn more about the issue by visiting the Coalition’s Web site (www.foodwithwine.org).

Note: members of the media may obtain an electronic version of the Food with Wine Coalition’s logo and the Kentucky Wineries Association logo by contacting Luke Schmidt (502.292.2898 or via electronic mail, lbschmidt@lbschmidt.com).

Louisville, Kentucky (March 3, 2008) – Kentuckians who live in wet and moist areas, as well as the growing number of Kentucky’s wine producers, could benefit from a proposal sponsored by House Speaker Pro Tem Larry Clark and endorsed by the Kentucky Wineries Association and the Food with Wine Coalition. House Bill 585, if passed by the Kentucky General Assembly, allows consumers to purchase wine in Kentucky grocery stores.

For Immediate Release

HB 585 Would Provide $55 Million in Tax Revenue to the Commonwealth

Louisville, Kentucky (March 3, 2008) – Kentuckians who live in wet and moist areas, as well as the growing number of Kentucky’s wine producers, could benefit from a proposal sponsored by House Speaker Pro Tem Larry Clark and endorsed by the Kentucky Wineries Association and the Food with Wine Coalition. House Bill 585, if passed by the Kentucky General Assembly, allows consumers to purchase wine in Kentucky grocery stores.

House Bill 585 responds to the growing demand on the part of consumers from across Kentucky to purchase wine to consume with their meals at the place where they do their food shopping – grocery stores.  More and more retailers have to turn down their customers’ requests for wine because current state laws prohibit grocery stores from selling wine.

Kentucky is one of only 16 states that do not currently allow consumers to purchase wine in grocery stores.  Each of Kentucky’s border states (with the exception of Tennessee) already allows consumers this fundamental choice.

Lifestyles have changed and wine has become an accepted part of a balanced diet and healthy lifestyle.

Nationally, in the 34 states which already allow grocery store wine sales, wine has become the second fastest growing category in grocery stores after bottled water.  Today, many consumers expect the opportunity to purchase a bottle of wine to pair with their meal.  Consumers in these states like the convenience of making one stop for all of their meal needs – including wine.  It saves time, money and gas.

Eddie O’Daniel, President of the Kentucky Wineries Association and owner of the Springhill Winery in Bloomfield noted Kentucky’s long and proud history of growing grapes and producing wine.  “Kentucky was the first state to plant a commercial vineyard (in Jessamine County) in 1798.  Kentucky’s climate and soils are conducive to growing a variety of grapes of exceptional quality.  Today, many of the Commonwealth’s wineries are producing wines of distinction which have been recognized in international competitions.  Yet, we need more sales opportunities in order to increase the awareness level among consumers and build sales.”

Luke B. Schmidt, a Louisville-based management consultant retained by the Food with Wine Coalition to manage the project stated, “Allowing wine sales in Kentucky’s grocery stores is good for Kentucky’s farmers, winery owners, consumers and the Commonwealth.

“By adding wine to grocery stores, Kentucky’s fast growing wine industry will have many new outlets in which to sell and promote their product.  There are 43 wineries in the Commonwealth today that need new sales outlets in order to grow their businesses.  House Bill 585 will make this happen,” commented Schmidt.

Both Schmidt and O’Daniel stated that the future of Kentucky’s wine industry depends upon the passage of HB 585 which will add several hundred grocery stores in wet and moist counties (where the sale of alcoholic beverages by the package is already legal – dry counties will not be impacted by this legislation whatsoever) to the list of retail establishments which can sell wine.  Schmidt noted that there are several compelling reasons why this legislation should be passed, including:

• Kentucky’s vineyards are growing rapidly (planted acreage has increased by 928% since 1999 and 84 counties are now home to vineyards) – Kentucky’s farmers need wineries to boost new sales outlets to create greater demand for the grapes they are growing.  This will assist those farmers that are transitioning from tobacco to alternative crops, including grapes

• According to University of Kentucky College of Agriculture staff, Kentucky’s wineries are projected to produce over 630,000 gallons of wine by 2010 – Kentucky’s wineries need new sales outlets to move this inventory

• Kentucky’s wineries have become an integral part of the Commonwealth’s agri-tourism scene; visitors to the state want to combine wineries with their visits to bourbon distilleries, horse farms and the state’s dynamic cities and scenic wonders – these same visitors (including those who will come from around the world for the Ryder Cup later this year and the Alltech FEI World Equestrian Games in 2010) will expect to be able to buy wine in grocery stores

• Kentucky’s grocery store industry projects that wine sales will increase substantially with the passage of HB 585 which will have a positive impact on the collection of various state taxes with an incremental increase of $55 million over the first five years alone which will serve to strengthen Kentucky’s finances

• The loss of sales to grocery stores in border states; in some instances, consumers that would normally shop for groceries in Kentucky may in fact be crossing the border in areas such as Northern Kentucky to shop for groceries in Ohio where they can also buy wine in grocery stores

Schmidt stated, “Its time for Kentucky to join the 34 other states by passing this legislation and provide a positive benefit to its citizens.”

The Kentucky Wineries Association is a not for profit organization that was also established in 2007.  The Association’s members include 11 of Kentucky’s leading wineries which produce approximately 75% of all wine made in the Commonwealth.  The Association is developing a comprehensive marketing campaign which will include a new Web site in the near future.

The Food with Wine Coalition is a not for profit organization that was established in 2007 by Kentucky’s grocery store industry.  The Coalition’s purpose is to educate and inform those living in Kentucky as to the advantages of allowing grocery stores to sell wine in wet and moist counties.  Interested parties are invited to learn more about the issue by visiting the Coalition’s Web site (www.foodwithwine.org).

Note: members of the media may obtain an electronic version of the Food with Wine Coalition’s logo and the Kentucky Wineries Association logo by contacting Luke Schmidt (502.292.2898 or via electronic mail, lbschmidt@lbschmidt.com).

L.B. Schmidt & Associates, LLC (LBS&A) has been selected by a state trade association to lead a project which will allow the client’s members to expand their inventories and selling opportunities.

Elizabethtown, Kentucky(October 15, 2007) – The Elizabethtown Airport Board today unveiled its concept design for a new passenger airline terminal at the Elizabethtown Regional Airport (EKX).

For Immediate Release

EKX Airport Concept Terminal Design Unveiled

New Design is Intended to Assist in Airline Recruiting Effort

Elizabethtown, Kentucky(October 15, 2007) – The Elizabethtown Airport Board today unveiled its concept design for a new passenger airline terminal at the Elizabethtown Regional Airport (EKX).

Joe Yates, Chairman of the Elizabethtown Airport Board, stated that the effort to restore passenger airline service at EKX is well underway and substantial support for the project has been lined up through the new Partnership for Central Kentucky Airline Service.  One of the key issues which needs to be addressed is that of developing a new passenger terminal at the Addington Field airport.

Recently, the Elizabethtown Airport Board commissioned a concept design for the passenger terminal from LHB Architects of Elizabethtown.  The intent is to illustrate what a passenger terminal might look like at EKX and to provide the renderings to potential airlines.

Luke Schmidt, consultant to the Elizabethtown Airport Board commented, “The new concept terminal design provides a dramatic portal to the entire region.  This facility will make a positive first impression on each and every traveler who flies through EKX.”

The concept terminal is encased in glass which will allow for lots of natural sunlight to filter through the facility.  Travelers will be able to watch aircraft operations.  The design includes a USOlounge, a business center and a restaurant.

Both Yates and Schmidt stated that the final design may differ from the concept design; however, this provides the Airport Board with a concept which can be discussed with potential airlines. By commissioning the concept design now, the Airport Board will also be able to incorporate design suggestions from the airlines and the United States Transportation Security Administration which will improve the efficiency of the design.

The unveiling of the concept terminal design comes on the heels of the launch of the Elizabethtown Airport Board’s new Web site (www.ekxairport.com) which is designed to provide information about the airport and the airline service project.  The project continues to generate substantial support from throughout Central Kentucky.

To date, 72 government jurisdictions, chamber boards and industrial development boards have passed formal resolutions of support for the project.  The Board has received over 140 letters of support for the project.

(Note: members of the media may obtain an electronic version (.jpg file) of the airport’s logo and the renderings of the concept terminal by contacting Luke Schmidt by calling 502.292.2898, or via E-Mail, lbschmidt@lbschmidt.com)

Elizabethtown, Kentucky(September 11, 2007) – The Elizabethtown Airport Board today announced the development of its new Web site. The new Web site has been officially launched and can be visited at the following URL address: www.ekxairport.com

For Immediate Release

EKX Airport Web Site Launched

Airport Board’s New Web Site to Promote Elizabethtown Regional Airport and Support Bid for Passenger Airline Service

Elizabethtown, Kentucky(September 11, 2007) – The Elizabethtown Airport Board today announced the development of its new Web site.  The new Web site has been officially launched and can be visited at the following URL address:

www.ekxairport.com

Joe Yates, Chairman of the Elizabethtown Airport Board, stated that the Web site has two primary objectives: to promote the airport and the services that it currently offers, along with providing updated information on efforts to restore passenger airline service at the field.

“Elizabethtown Regional Airport,” said Yates, “provides many services to the flying public and supports area businesses and industries by providing a modern, all-weather airport capable of handling any private and most corporate aircraft.  EKX also provides a portal to the region for freight that is being sent or received on a time-critical basis.  Our new Web site provides a lot of useful information for users of the airport.”

Luke Schmidt, the consultant to the Airport Board who is leading efforts to restore passenger airline service at EKX also commented that the Web site will provide important information to interested parties about the project and that the site will be updated frequently.  “In today’s digital world, every project such as this one needs a Web site to support it.  The new EKX Web site provides additional information on the market along with airport information and regional support,” stated Schmidt.

The Web site provides several areas of information, including a detailed history of aviation in Elizabethtown (starting with a reference to the first known U.S. Airmail airport in the Glendalearea in the 1930s), airport information for pilots, and information on the airport’s fixed base operator (Elizabethtown Flying Service).

Additionally, the site also provides an overview of efforts underway to restore passenger airline service.  Members of the newly formed Partnership for Central Kentucky Airline Service are also listed.  The Partnership includes 72 government jurisdictions, chamber boards, industrial development boards and other key entities that have passed formal resolutions of support for the project.  Also included in this section of the Web site is a listing of the 140+ elected officials, business and industry officials and individuals who have sent letters of support for the project.

Archived press releases and news articles can also be found on the site.  The Airport Board plans to offer reciprocal links to Web sites belonging to members of the Partnership for Central Kentucky Airline Service.  These links should be up and running within the next two weeks and will provide a valuable two-way promotional link for both the airport and the members of the Partnership.

The Elizabethtown Airport Board is a not for profit organization which operates the municipal airport in Elizabethtown, Kentucky.  Elizabethtown Regional Airport began operations in 1982 as a general aviation airport and is currently engaged in efforts to restore commercial airline service to the field.  The airport is promoted by use of its three letter identification code: EKX.  EKX includes a 6,000 foot long runway which is “regional jet ready” with complete general aviation services.  An Instrument Landing System (ILS) (localizer) has been installed which further enhances safety and increases the airport’s all-weather operational capacity.  EKX plans to build a passenger terminal should commercial airline service be restored.

(Note: members of the media may obtain an electronic version of the new logo by contacting Luke Schmidt by calling 502.292.2898, or via E-Mail, lbschmidt@lbschmidt.com)

Elizabethtown, Kentucky(July 16, 2007) – The Elizabethtown Airport Board today announced the development of substantial support for new commercial airline service at the Elizabethtown Regional Airport (EKX).

For Immediate Release

Regional Support Growing for New Airline Service at EKX

70 Groups Support New Airline Service at Elizabethtown Regional Airport

Through the Partnership for Central Kentucky Airline Service

Elizabethtown, Kentucky(July 16, 2007) – The Elizabethtown Airport Board today announced the development of substantial support for new commercial airline service at the Elizabethtown Regional Airport (EKX).

During the past several months, the Airport Board’s consultant, Luke Schmidt, has met with numerous government jurisdictions, chamber boards and industrial development boards throughout the 24 county Elizabethtown Regional Air Service Market.  During these meetings and presentations, Schmidt has presented the project as a means by which to further connect the entire region to the global economy.

In addition, groups throughout the region have recognized the value that new airline service will bring in terms of providing an additional selling point for prospective new businesses and industry, thereby helping to create thousands of new jobs in the future.

As of today, 70 organizations have formally considered and passed resolutions of support for the development of new airline service at EKX.  In addition, over 100 letters of support have been received from elected officials, business and industry leaders and individuals.

Joe Yates, Chairman of the Elizabethtown Airport Board stated, “The Board is pleased with the overwhelming support that it has received from all of these organizations.  This support clearly indicates that the region is ready to embrace new airline service.”

Luke Schmidt stated that outreach efforts have also extended to Fort Knox.  “With all of the changes that are coming to the Post as a result of BRAC, the leadership at Fort Knox has clearly recognized the benefits of having convenient and cost effective air travel only 15 minutes away and is very supportive of our efforts.  This effort has truly become a regional project in every sense of the word.”

Following is a list of the organizations which have passed formal resolutions of support:

Each of the organizations listed above, along with the elected officials, business and industry leaders and individuals who have sent letters of support will now become part of a new umbrella group – the Partnership for Central Kentucky Airline Service (Partnership).  The Partnership is a non-legal, non-financial and non-binding group that has been established by the Elizabethtown Airport Board as a means to promote the substantial support for the airline service project at EKX with potential airlines.

Several projects are underway to support the recruitment of new airline service at EKX.  The City of Elizabethtown recently applied for a grant from the United States Department of Transportation’s Small Community Air Service Development program which, if awarded, will be used to assist in the start-up of service.  A new Web site will go online in about two weeks to promote the project.

The Elizabethtown Airport Board is a not for profit organization which operates the municipal airport in Elizabethtown, Kentucky.  Elizabethtown Regional Airport began operations in 1982 as a general aviation airport and is currently engaged in efforts to restore commercial airline service to the field.  The airport is promoted by use of its three letter identification code: EKX.  EKX includes a 6,000 foot long runway which is “regional jet ready” with complete general aviation services.  An Instrument Landing System (ILS) (localizer) has been installed which further enhances safety and increases the airport’s all-weather operational capacity.  EKX plans to build a passenger terminal should commercial airline service be restored.

(Note: members of the media may obtain an electronic version of the new logo by contacting Luke Schmidt by calling 502.292.2898, or via E-Mail, lbschmidt@lbschmidt.com)

March 18th, 2007 Hot Button Guest Editorial: Luke B. Schmidt, Food With Wine Coalition — Text Version

What would you think if I told you that I know a way that the Kentucky General Assembly can find $59 million in new tax revenue without raising taxes, help Kentucky’s grape growers and wineries grow their businesses, and create new locations where consumers can purchase wine and create more competition in the marketplace?

L.B. Schmidt & Associates, LLC (LBS&A) has completed an assignment for a national professional certification society with 88,000+ certified members.