Wines & Vines

February 2012 Barrel Issue

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FEBRU AR Y NEWS 12-27% lighter than conventional wine bottles. Local bottles, global good—sure to make a splash! Ask about the O-I Lean+Green® line at wine@o-i.com Foes of Washington State Initiative 1183 are still contesting the issue. Wine Privatization Challenges Expected Voter-approved legislation faces legal battle in Washington state K elso, Wash.—Cowlitz County Superior Court in December rejected an application to halt implementation of Wash- ington State Initiative 1183, which passed with 58.7% voter support in November's general election, but observ- ers said that legal status of the transition remains in flux. The initiative is expected to bring full privatization of state- controlled liquor distribution and sales by June 2012, but moves to implement the changes—including the ability of wineries to negotiate volume discounts with purchasers—are still hanging in the balance, thanks to the machinations of opponents. "The situation is still fluid," said Susan Johnson, a partner in the Seattle office of Stoel Rives LLP. Johnson's practice focuses on issues facing the food, beverage and hospitality industries; Stoel Rives has been counseling its clients to proceed slowly with changes. The initiative process "should not be an exercise in log-rolling where the initiative drafter cobbles together unrelated subjects in order to attract votes or takes advantage of the popularity of one subject to obtain passage of another subject that lacks majority support," said a court filing by opponents. Opponents allege this is exactly what I-1183 does, rolling "discriminatory, non-uniform pricing" and unregulated advertising of beer, wine and spirits in with the initiative's primary objective, privatizing the sale and distribution of hard liquor in Washington state. To have their case heard, opponents winesandvines.com sought the "injunction prohibiting further enforcement of I-1183" that Judge Warning declined to grant. According to local media reports, however, Warning expects his decision to be appealed and the matter to move to the Washington State Supreme Court. A second action in Washington State Superior Court of King Learn more: Search keyword "I-1183." ™ County by Teamsters Local 174 and United Food and Commercial Workers 21 also challenges the initiative's constitutionality. —Peter Mitham makers of leaner, greener, locally-made glass packaging Wines & Vines FeBRUARY 2012 17

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