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

Legislation Benefiting Kentucky’s Farmers, Wineries and Consumers Draws Support of KentuckyWineries Association, Food with Wine Coalition

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

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).