Small Lodi wineries weigh in on proposed wine district tax
The San Joaquin County Board of Supervisors held the second of three public hearings about the proposed Lodi Winery Business Improvement District and the assessment that will be added to all sales at tasting rooms.
Some small wineries are concerned about the fallout.
"There's a lot of people who are about principle," Intercoastal Wine Company co-owner Rachele Spaletta said. "I'm about principle. I don't like paying 10 cents on a bag at the grocery store in California."
This is the analogy Spaletta used during the public hearing. Her concern is that the proposed district and its assessment will drive customers away.
"That's not going away, and so once it gets in, it's never going away," she continued.
The idea is to add a 1.5% assessment on all final sales on all products in tasting rooms. The money would go towards marketing to get more people to come into the city and enjoy local wine.
CBS Sacramento caught up with Spaletta after the meeting.
"We're just a small boutique winery," she explained. "We rely on our local business to come into our wineries — 85-90% is our local business. It's just our personal decision that we really don't want to have our consumers paying for the marketing of the region."
The Lodi Winegrape Commission says about 70% of wineries are on board with this proposal, but some small wineries are concerned it'll drive customers away from their business, especially those who are local.
For those who don't have the capacity to distribute wine nationwide, their tasting rooms are the main source of income.
"We don't distribute. We're just local to our consumers," Spaletta said. "Our direct-to-consumer is out of the tasting room."
She said if a tax can be added for winery marketing, she worries it can be added to any business.
"You have businesses who see the benefit of charging the consumer to help us raise funds and get more people from out of the area to our area. I understand that," Spaletta explained. "Then there's those who are against it that don't want to charge our local people for that marketing. It's a difference of opinion on how we want to run our businesses, basically."
CBS Sacramento took some of her concerns to the Winegrape Commission.
"The goal is to broaden the awareness, broaden the customer base, and bring more people to Lodi," Winegrape Commission Executive Director Stuart Spencer said. "I think the fact that some of our larger wineries are involved in this is going to benefit our smallest producers more than the large wine companies."
While there is division on whether or not this will help the local wine industry, they do share one goal in common: working together makes this wine city stronger.
"I really want to stay strong together and work together and build our community to be stronger in different ways," Spaletta shared. "I just think there's a better way than another line item on a tax because I don't know that anybody in California wants another line item on a on their receipt, and I certainly don't."
"All voices are welcome at the table, and I think those that will benefit the most from that are those that get engaged," Spencer continued. "I think if we're all pulling in the same direction and putting some resources towards that, Lodi has a bright future in front of it."