Santa Barbara Vintners 4th Wine BID

Over the last two years the Santa Barbara Vintners have made several proposals to create a Wine Business Improvement District (BID)
The 1st proposal was 2% on all California Direct to Consumer(DTC) sales and to use some of those funds to pay for marketing to grocery stores, wine shops, hotels and restaurants(Trade) but NOT require the Trade sales to pay anything.
The 2nd proposal was to reduce the assessment to 1% and still permit wholesale Trade sales to be “free riders.”
Some wine club members complained if they were “special” and part of the “family” why were they paying the same 1% as non-club consumers? The SB Vintners then made their 3rd proposal - 1 1/2% on all tasting room sales. They still proposed to use some of the funds raised to pay for marketing to the trade who would pay nothing. They also proposed for the first time to use 23% of the funds raised for “advocacy.” The SB Vintners took this 3rd proposal to the SB Board of Supervisors who noted that the slope between “advocacy” and "lobbying was quite slippery. The trade was still not paying their fair share. The county auditor-controller said there was no way to audit the self reporting of tasting room sales.
Now we have the SB Vintners 4th Wine BID proposal. Finally, after 18 months the SB Vintners have dropped their proposal to use BID funds for wholesale sales to the Trade who would not pay their fair share. They also dropped their “advocacy” proposal. The 4th proposal is now 1% on all California DTC sales which would include wine club members. They are proposing to spend 46.3% of the BID funds on salaries, overhead and reserves. There are now over 50 wineries who oppose the Wine BID and that number is growing.

Letter From The Santa Barbara Wine Country Coalition Opposing the Proposed BID:

https://mailchi.mp/e454c6bf812c/please-read-our-letter-from-45-sb-vintners-who-are-opposed-to-the-bid-9430294

Sounds like a jobs program for marketing professionals.

LOMPOC WINERIES AND CITY COUNCIL REJECT WINE BID
At its Tuesday night meeting the Lompoc City Council passed a Resolution stating: “The City Council does not consent to the inclusion of the City of Lompoc in the BID.” This was in response to a petition from 32 Lompoc Wineries opposing the Santa Barbara Vintners’ Wine BID. The petition signers are a number of Lompoc ‘s and Santa Barbara Wine Country wine pioneers and well- known wineries.
The Santa Barbara Vintners have been working on a BID for over two years. Their 4th Wine BID proposes to tax 1% of all California Direct to Consumer (DTC) Santa Barbara wine sales. The Vintners’ website states BID #4 will be brought to the Board of Supervisors (BOS) in November/December to be effective in January. The Vintners’ contend the Wine BID will promote “the entire wine region.”
If the BOS approves the Wine BID each incorporated city in the county must affirmatively vote to be included in the Wine BID for it to be effective in each city. At a meeting of the Lompoc Wineries in February, in response to what the Vintners would do if a city voted not to opt in to the Wine BID, the Vintners’ Executive Director replied the Vintners would “cut out” that city’s wineries and tasting rooms from the Wine BID’s marketing programs. Cutting out the Lompoc wineries and their tasting rooms is antithetical to the justification and purpose of the Wine BID- to promote the “entire” Santa Barbara Wine Country and its wines.
We anticipate that after the elections the City Councils of Buellton, Solvang and Santa Barbara will have the opportunity to express their views on this important issue.

i wish this type of stuff was from theonion. just hilarious people get behind this type of shit.

SB VINTNERS DROP WINE BID PROPOSAL. Unfortunately I lack the tech skill to post their letter. Perhaps someone with those skills can. I see no need to editorialize and their letter should speak for itself.

Here is a link to a story about this from Matt Kettman at the SB Independent (who also happens to be the winer reviewer for our area for the Wine Enthusiast Magazine):

And here was his comments on a Facebook thread about the story:

Well, this interesting albeit controversial idea is officially done. Hopefully, those in opposition will join the association now (if they aren’t already members) and will work collaboratively toward a stronger future.

It’s easy to criticize. It’s much harder to develop meaningful solutions.

I’m on the frontlines of seeing how Santa Barbara’s wine marketing efforts are overshadowed every day by better funded and more strategically collaborative regions around the world. That imbalance doesn’t set the region up for a stable future, no matter how great the wine is.

So now the question for Stephen Pepe, Brian Loring, and others - are you going to join the Vintner’s Association and push for the changes you want - and to monetarily support the industry? And if not, why?

Cheers.

Hi Larry. Nice to hear from you. I just learned this morning that the SB Vintners are dropping their Wine BID proposal. I and others are waiting to hear from the Vintners their plans for moving forward. We are all looking forward to working together to come up with a structure for making the Vintners’ Association effective, financially stable and representative of all of the Santa Barbara wine country. Hope your harvest has gone well.
Steve

Steve,

Thanks - and you are pretty funny. ‘…waiting to hear from the Vintners for their plans for moving forward.’

From how it appears, this ‘splinter group’ seems to have ‘better plans’ to raise funds and create a more cohesive group of wineries than what the Vintner’s Association has proposed. So nope, I think it’s time for this group to step up en masse, join the Association, and be a part of the solution.

I can’t wait to see you, Dave Delaski from Solminer, Mike Roth from Lo-Fi, Steve Beckmen from Beckmen, Rick Longoria, Peter Work from Ampelos, Kate Griffith from Flying Goat, Jeff Nelson from Liquid Farm and others who opposed this joining the Association in the coming months and being a part of the changes you desire.

Cheers.

Hi again. Since the Vintners’ has 75 or so members and the “Splinter Group” has 80+ members-who is the splinter group? The Vintners’ Board has spent two years and tens of thousands of dollars on four failed Wine BID Proposals. Is the Vintners’ Board willing to listen to other ideas? We will have to wait to see if the Vintners’ Board is open to new approaches. I am glad to hear you want us to be part of the solution.

Is there anything wrong with trying a couple (or few) things to see what works best?

Of course not and that is what should be done.

You are a funny guy.

Listen? What are you talking about? The Board has been working on multiple options and those have all been laid out and you and ‘the others’ know about them - rhe Board has been quite transparent.

Auction? Did one last year.

Grape Commission? Can’t do unless it’s done with SLO and Paso, since we are all part of District 8 and can’t be separated.

Waiting to see what brilliant ideas you have - and whether or not these other wineries are going to be willing to pitch in, volunteer, and get the job done. If the past is any indication, we both know the answer.

You’re up.

Brian,

What Stephen fails to mention are the other things that have been tried. What he also fails to mention is that the majority of folks that are part of this splinter group will most likely never join any Association, regardless of how it’s structured.

Cheers.

Larry. You know the SB Vintners have never tried a Friday night auction for the trade and connoisseurs to benefit the Association before the Saturday charity auction. You also know the SB Vintners charity auction is not for local hospitals as are the Hospice de Beaune and Napa’s auctions. You know the SB Vintners charity auction is not held in the wine country the way Napa’s and others are. It is held in a hotel near Santa Barbara and there isn’t a vineyard within 100 miles and a winery within 30 miles. At the February meeting of Lompoc Wineries when Brian Loring suggested looking at a Grape Commission the President of the Vintners’ Board said he had and it was “too complicated and would take too long.” You are right that SB is in Crush District 8 with Ventura and San Luis Obispo Counties. You are wrong that it is difficult to change. I passed on to the Millers, one of whom is on the SB Vintners Board, that the CDFA just modified a Crush District in Northern CA. It took a couple of months and lot less money than the Vintners have spent on their illegal Wine BID proposal. Each time suggestions are made the SB Vintners’ Board response is it can’t be done. SB Vintners needs a Board of folks who see the glass as half full, not half empty. Finally, the SB Vintners’ Board needs to take responsibility for two years of failed leadership pursuing an illegal Wine BID proposal instead of blaming its critics and calling them names.

Stephen,

Which Saturday charity auction are you talking about? Not sure what you mean here - please clarify.

Also, the Vintner’s Foundation, a separate entity itself, did raise funds that directly benefitted Community Health Centers, an important health care giver in our area.

As far as where the event takes place, it is within minutes of wineries in Santa Barbara and Goleta (sorry that you are not aware of that) and within 30 minutes of some fantastic vineyards. Could it be changed to be up in ‘Wine Country’ - possibly . . . are you going to donate your vineyard to do so? That would be great - thanks in advance.

The Grape Commission is a much more drawn out process, as you know, and the Board has been working on it. Nope, it’s not a process that will take ‘months’ at all - it will take much longer. Are you willing to donate your legal prowess to help? That would be great - thanks!

As far as half full, you are completely wrong. You obviously have not spent much time with Tyler Thomas or Jessica Gasca or Katie Longoria - and maybe you should. By the way, these are people who are donating their precious time to help the greater good, rather than complaining that their own businesses are so important that, in effect, they have no time to spare to help the area as a whole.

And for the last time, there was nothing ‘illegal’ about the Wine Preserve concept whatsoever - the main reason it was pulled, as you know, is that a lawsuit was threatened that would have dragged on for years and cost the Board, the County, and others lots and lots of money. Not illegal.

Carry on - and I can’t wait for you to donate your time, your winery and your resources to make the Vintner’s Association a more inclusive and economically feasible one. We are all waiting . . .

Cheers!

Larry. Please have the Vintners’ Board release the feasibility report for the Wine BID. There are a lot of lawyers on this board and they know it will say about the legality of the Wine BID either - we make no representations or warranties about the legality of the Wine BID and you should consult your own counsel or since no Wine Association has formed a Wine BID there is no case law regarding this matter and we make no representations or warranties about the legality of the Wine BID. Larry prove me wrong - release the Wine BID feasibility report. The Vintners Board has known from day one that the Wine BID was legally suspect. Yet they spent two years and four proposals trying to cram thru a legally flawed idea. No wonder the Vintners’ Board has no credibility.

Is there any way to try the Wine BID, but only have it be applied by SB Vintners members? I know it would be odd for only some wineries to be imposing such fees, while others aren’t, but is there any actual, logistical, reason this couldn’t be done? That would at least allow those who support it to give it a try while those who don’t support it can sit on the sidelines and watch for (hopeful) success or (hopefully not) failure.

Why don’t they just pay dues, perhaps in proportion to their sales? There are two reasons, experience has shown it doesn’t raise the level of funds they want and as dues are increased wineries drop out of the association, also there are the free rider effects (although the BID proposal also had free rider effects, just benefiting different parties).

Part of the attraction of the BID idea was the notion that it didn’t cost the wineries anything because the consumers (some of them) would pay it. Of course, the larger wineries that sell a lot at wholesale didn’t appear to believe that the fee would be cost or impact free to them (that’s why those sales were not included).

-Al

So, in other words, it is logistically possible. Do I have that right?

{to be clear, I’m not taking sides here; rather, just trying to cut through everyone’s utopian vision so we can see, and deal with, reality — good, bad, or ugly} [cheers.gif]