Lodi Roadshow - Simplifying Compliance - Jim Agger - WineDirect

Compliance? We’re talking about compliance?

I didn’t get into the wine business to do this!

Legal and Legislative Update

Strategies for Getting Compliant

Optimal Compliant Workflow

Legal and Legislative Updates

Wineries can ship to 41 states for offsite sales

WA

OR

CA

NV

ID

WY

MT ND

NE

CO

NM

LA

MO

MNWI

MII

IL INOH

KY

ALGA

FL

NC

VAWV

P

NY

NH

MA

RI

CT

NJ

DC

MD

DE

AZ

AK

HI

VT

UT

SD

IA

AR

TX

TNSC

ME

PA

MS

KS

Restrictions (On-site Purchase Only)

Prohibited

Allowed

OK

Direct Shipping Update Trends

$4.5 BillionTotal DTC

$1.5 BillionDTC Shipments

$2.8B$540M

$900M

Events

Ecommerce

Tasting Room

$270M

Wine Club

Source: Silicon Valley Bank DTC Survey, WineDirect Proprietary Data

30 States with Budget Shortfall in 2013

IA

WA

OR

CANV

ID

WY

MT ND

NE

CO

NM

LLA

MO

MNWI

MI

L INOH

KY

ALGGA

FFL

NC

VAWV

P

NY

NH

MA

RI

CTNJ

DCMD

DE

AZ

AK

HI

VT

UT

SD

AROK

TX

TNSC

ME

PA

MS

KS

DTC Shipping States That Require Common Carrier Licensure

IA

Source: Wine Institute

IL

Now for some good news….

OR

CA

NV

ID

WY

MT ND

CO

NM

LA

MO

WI

IL

G

F

NC

P

NY

AZAR

PA

MA

2013 State Update- Montana and Arkansas

.31% .43%

$50 $25*

Massachusetts (HB 1029)Pending Legislation in 2014

3.5% 2.5%

Massachusetts (HB 1029)Shipping starts 1/1/2015…probably.

3.5% 2.5%

• $300 permit.• 12 cases

consumer/ year.• Carrier 21+

stickers.

Pending Legislation in 2014

Okay, so you’re ready to get compliant. What do

you do next?

Real-time order checking

Accurate collection of sales taxes

Tax and shipment reporting

Staying current with rule updates

Obtain licenses where required

All-In

Updated January 2014 Source: WineDirect Proprietary Information

WA

OR

CA

NV

ID

WY

MT ND

NE

CO

NM

LA

MO

MNWI

MII

IL INOH

KY

ALGA

FL

NC

VAWV

P

NY

NH

MA

RI

CT

NJ

DC

MD

DE

AZ

AK

HI

VT

UT

SD

IA

AR

TX

TNSC

ME

PA

MS

KS

OK• 88% of US Consumption• Total Cost: approximately

$7,908• Reports Required: Up to

780 filings per year.

Maximum Opportunity

OR

NV

ID

WY

MT ND

NE

NM

LA

WI

P

AZAR

PA

2.90%

18.07% 1.79%

4.83%

1.51%

4.34%2.63%

2.65%

8.02%

2.19%

8.30%

0.27%

2.26%1.54%

0.54%

4.37%2.76%

“Free” States

• 70.3% of US Consumption• Total Cost: approximately

$2,888 per year• Reports Required: Up to



Cost Conscious

MT

NE

LA

WI

P

AZAR

PA

2.90%

18.07% 1.79%

4.83%

1.51%

4.34% 2.65%

8.02%

8.30%

0.46%

0.45% 2.76%

0.12%

0.47%

0.11%

1.54%

“Free” States

2.26%

0.54%

1.71%

1.43%

• 62.2% of US Consumption• Total Cost: approximately

$1,350 per year• Reports Required: Up to



0.27%

Licensing Strategies

Cost Conscious

•62% of consumers

• 348 reports• $1,350/ year

Maximum Opportunity

•70% of consumers

• 312 reports• $2,888/year

All-In

•88% of consumers

• 780 reports• $7,908/ year

Real-time order checking

Accurate collection of sales taxes

Tax and shipment reporting

Staying current with rule updates

Obtain licenses where required

How does compliance fit in with my DTC business?

Two Common DTC Workflows

Order System

Compliance

Shipping or Fulfillment

Order System


Compliance

Introducing the Optimum

Optimal Compliant Workflow

New Optimum DTC Workflow

Vin65Order Management

POS


WineDirectCompliance

software

Tax Rates

Compliant Y/N?

Tracking Compliant Orders

Club

Tele-sales

Tracking

Keys to customer friendly workflow

• Capture all order sources.

• Do not interrupt sales transactions.

• Maintain a single source of truth.

• Enable fast shipping.

Resources

Join us for a Demo

[email protected]

Jim AggerVP of SalesEmail: [email protected]: 707.603.4013

mailto:[email protected]

Lodi Roadshow - Simplifying Compliance - Jim Agger - WineDirect

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