Can the Nevada Wine Industry Grow?

May 11, 2015

(Wines&Vines) - It’s a hard-drinking state with one of the tiniest wine industries in the nation, but Nevada may open window for growth if a bill that recently passed the Assembly meets the same favor in the state Senate.

Assembly Bill 4 would alter 1993 regulations that currently forbid winery operation in Nevada’s two most populous counties, Clark and Washoe, homes to Las Vegas and Reno. As presented and amended, AB 4 would continue to limit tasting room sales to 1,000 cases for wines containing less than 25% of Nevada grapes.

Considering that Nevada currently has only three bonded wineries, according to Wines Vines Analytics—fewer than every state except Hawaii and Delaware—and an estimated 10 acres of wine grape vineyards—the restrictions present a problem for those who would like to see a growing wine industry in the state.

Two interested parties who testified before recent legislative hearings have differing viewpoints about the bill. Irene King, owner of VegasWineaux, testified at several hearings, including the most recent on May 6, via video. A certified first-level sommelier now preparing for her Master of Wine certificate, King wrote, “There is a fight (and that’s probably the right word) going on in Nevada right now to open up those counties with large populations to legally have wineries established in them. The current law as it stands allows more leeway for Nevada’s famous bordellos than it does its wineries. It is restrictive, and as a result there are only four wineries in the state.”

Cui bono?

On her blog, King blamed “special interests” for these restrictions. Speaking with Wines & Vines, she implied that these special interests include the state’s existing wineries in Nye County (outside of Las Vegas) as well as wine distributors. “They say they invite anyone to come in and start a winery, but they want to be protected. If they come in and make wine and don’t use 25% or more Nevada grapes, their sales will be limited” to the 1,000 cases per year cap.

King would like to see more diversity. “Here, a ‘wine vacation’ is a 50-mile day trip on a bus trip to Pahrump. If wineries have the production to sell more wine, they have to go through distributors. To sell to the Bellagio (or other major casinos), you have to have a distributor. Las Vegas is all about “juice.” In Vegas, she explained, “juice” isn’t grape juice, it’s power and influence. “It’s who you know.”


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