Last year, eight wineries were at risk of having their alcohol licenses suspended for violating tied-house laws after some of their tweets and social media posts referenced a well-known retailer. The tweets were part of a campaign to promote Sacramento's Grape Escape, an annual tasting event bringing together local restaurants, breweries, and wineries.
The California Department of Alcoholic Beverage Control ("ABC") launched an investigation and sent letters threatening a 10-day suspension or one-year probation if they admitted to the offense. A suspension could lead to thousands of dollars in lost revenue. Seven of the wineries agreed to the one-year penalty, but Renwood Winery decided to fight disciplinary action and argue against ABC's enforcement of the rule. The dispute is now before an administrative judge who will issue a proposed decision following the filing of supplemental briefs from the winery and the ABC. If rejected by the ABC director, Renwood can still appeal the director's decision.
In recent years, the ABC has cracked down on small vinters and brewers over the same types of violations. In 2013, a handful of wineries faced disciplinary action after participating in the BottleRock festival in Napa. The continued enforcement of these Prohibition-era laws may have a disparate chilling effect on small craft brewers and wineries struggling to make a presence in the market. Many of them utilize social media as platform to market their products and promote events to a broader range of consumers. These producers may be discouraged from participating in future events out of fear of further disciplinary action.
Renwood's decision to dispute these laws may force a change in the near future, but for now, local wineries and brewers have reason to be cautious about their social media marketing.
The California Department of Alcoholic Beverage Control ("ABC") launched an investigation and sent letters threatening a 10-day suspension or one-year probation if they admitted to the offense. A suspension could lead to thousands of dollars in lost revenue. Seven of the wineries agreed to the one-year penalty, but Renwood Winery decided to fight disciplinary action and argue against ABC's enforcement of the rule. The dispute is now before an administrative judge who will issue a proposed decision following the filing of supplemental briefs from the winery and the ABC. If rejected by the ABC director, Renwood can still appeal the director's decision.
In recent years, the ABC has cracked down on small vinters and brewers over the same types of violations. In 2013, a handful of wineries faced disciplinary action after participating in the BottleRock festival in Napa. The continued enforcement of these Prohibition-era laws may have a disparate chilling effect on small craft brewers and wineries struggling to make a presence in the market. Many of them utilize social media as platform to market their products and promote events to a broader range of consumers. These producers may be discouraged from participating in future events out of fear of further disciplinary action.
Renwood's decision to dispute these laws may force a change in the near future, but for now, local wineries and brewers have reason to be cautious about their social media marketing.