SC lawmakers go after tasting room closing time, micro-distilleries in wine giant deal
South Carolina House lawmakers said Tuesday that they support luring a $400 million economic deal to the state but also blasted a measure in that deal added by the state Senate that would require the company’s proposed standalone wine tasting rooms to close by 5:30 p.m.
At that hour, “people are not attending or can’t get there,” said state Rep. John King, R-York.
“We need to look at the time as we move forward because that could bring in more revenue to communities,” King added.
Making no changes, the House Judiciary Committee voted 22-0 on legislation that would help lure California-based E & J Gallo Winery to about 640 acres in Chester County’s Fort Lawn community and build a $400 million East Coast bottling and distribution manufacturing plant, adding almost 500 jobs.
That investment would be the start, Gallo representatives told lawmakers this month, looking to add 1,000 jobs over 30 years.
But to plant that East Coast hub in South Carolina, Gallo has requested lawmakers pass specialized legislation allowing the company to open and run three standalone tasting rooms in busy areas of the state. That is currently not allowed under the state’s alcohol laws.
Opponents from restaurants to bars, wineries, wholesalers and retailers have tried unsuccessfully for weeks to argue to state lawmakers that the legislation would give an out-of-state company an unfair advantage in the market and cripple existing businesses.
Gallo says not so, and — pushed by lawmakers’ urging — considerably tweaked their request so that it would only sell six bottles, not the original 12, of only wine. The tasting rooms would have to close at 5:30 p.m. and Gallo could only buy its bottles through the state’s licensed wholesalers and then sell them to customers at the retail price.
The legislation goes even further.
The Senate tacked on what was a separate bill to appease the state’s micro-distilleries — suffered under the weight of the COVID-19 pandemic — by adding measures to increase the amount they can serve for tasting and allow them to have a restaurant on site.
State Rep. John McCravy, R-Greenwood, questioned the inclusion of liquor, saying he supports the economic deal but the unrelated measure “confused” him.
“There were 33 micro-distilleries within the state, so they’re all over. We’re down to 28 at this point,” said state Rep. Russell Fry, R-Horry. “I think the thrust of this is to (put) micro-distilleries on equal footing or similar footing legally as a brewery or a winery.”
Lawmakers said the House could debate the bill as early as next week, leaving the Legislature only two weeks left on the calendar.
Should the House make any changes, the legislation would go back to the Senate, prolonging its full passage.
“The hours of operation seem to be a little harsh,” said state Rep. Cezar McKnight, D-Williamsburg.
And more, not less, he said, should be done to lure wineries to the state, similar to California.
“If we do this, this way, we send a message that, ‘Hey, it’s going to take some really deep pockets to come to South Carolina,’” McKnight said. “And if anybody keeps up with the wine business, just look to California. It’s huge, in my Donald Trump voice. It’s phenomenal.”
This story will be updated.
This story was originally published April 27, 2021 at 3:53 PM.
