Indiana wine law ‘will make direct selling easier’

A new law governing direct selling of wine in Indiana has removed the requirement of face-to-face interaction with consumers, making it easier for merchants to grow their consumer base.

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Under the new law Indiana SB 113, which has already been enacted, Indiana direct wine sellers are no longer required to make a face-to-face transaction with customers at their business location, or to to report the names and addresses of consumers to the Alcohol and Tobacco Commission. They only need to get the consumer’s name, address, phone and proof that she is above 21-years-old.

Furthermore, the bill allows direct sellers to ship into Indiana up to 47,000 litres of wine, up from  27,000 litres. Previously merchants also had to post an alcohol tax bond for $1,000 in order to get licensed as a direct seller, however the new law removes this requirement. It also clarifies payment of wine excise tax, which is due by the holder of a direct wine seller’s permit.

In these ways, it will be easier and cheaper for winemakers to increase their consumer base in the state.

As already mentioned, the bill obliterates for winemakers the requirement for an alcohol bond when obtaining a direct wine seller’s permit. But there are further new rules that are seen as positive for the business. All of these new measures are likely to increase the direct wine consumption in the state.

Becoming a direct seller got easier

In practical terms, the new SB 113 makes the process of becoming a direct seller for winemakers less of a hassle. Additionally, it also makes the operation of direct sellers easier. Wine manufacturers still need to apply for a direct seller’s permit, but they are spared from having to obtain a surety bond for $1,000. This means a smaller financial burden and less time needed to become operational as a direct seller.

Legislators envision a positive effect from the new SB 113 bill for Indiana’s local winemakers and direct wine sellers. The change definitely makes wine vintners’ easier and increases their consumer base.

If you’re manufacturing wine or making direct wine sales in the state, it would be great to hear your thoughts about it! Please leave a comment below.

Vic Lance is the founder and president of Lance Surety Bond Associates. He is a surety bond expert who helps small businesses get licensed and bonded. Vic graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan’s Ross School of Business.