(Wines&Vines) - When Paul Kronenberg was hired as president of Family Winemakers of California (FWC) in 1998, it was clear that the goal of the organization was to improve direct-to-consumer (DtC) marketing and sales opportunities for small wineries. But he never anticipated he would be so heavily involved in tracking and supporting wine sales and shipping litigation throughout the United States—and help coordinate efforts that would lead to the U.S. Supreme Court’s historic Granholm v. Heald decision in 2005. That decision opened the door for wineries to sell direct across more state lines. Today, wineries can sell and ship wines directly to consumers in 42 states. On Jan. 1, 2016, South Dakota will become the 43rd state open to DtC wine shipping.

Kronenberg recently announced he would retire at the end of 2015 after 17 years at the helm of FWC. With 2015 marking FWC’s 25th anniversary, Kronenberg leaves California’s family wineries—and in fact all U.S. wineries—in a better position to market and sell their wines directly to consumers throughout the country.

FWC and the DtC agenda

FWC was founded in 1990 to give voice to small family wineries in the public policy arena. In the wake of the 1990 referendum on the California Wine Commission that was not extended, several small wineries created the new vintners’ association separate from the Wine Institute. 

Explaining market trends at the time, Kronenberg said, “As the number of wine producers grew, the number of wholesalers shrunk, and retailers were also consolidating. It became apparent that small wineries needed a better way to get to consumers.” A major focus of FWC was to loosen up post-Prohibition restrictions on interstate wine sales. In many states laws favored wholesalers, and in some cases, state laws favored in-state wineries over out-of-state wineries. Reciprocal wine shipping agreements existed between 13 states including California, but progress in expanding those opportunities had stalled. In its early years, FWC issued a discussion paper, “Free Trade for Small Wineries in U.S. Markets,” which set the theme for its involvement in direct shipping.

Although not trained as a lawyer, Kronenberg became a legal expert on the 21st Amendment, fair trade policy and interstate commerce laws. Kronenberg began working with attorney Tracy Genesen, then legal director of the Coalition for Free Trade (CFT), an organization formed by members associated with FWC and other wine industry producer groups.