Thursday, February 21, 2013

MEA CULPA ©


            I need to correct something mentioned in my VINO II post regarding Cayucos Cellars. As we are all aware, our government is looking for money under every rock and sin taxes are a favorite way of adding to the public's burden. Distillers and wineries are bonded under a government agreement. Inventory may be held within a bonded space with no tax penalty until they are actually moved into the distribution stream.

Once a case of wine is taken from the bonded storage area, bingo - the tax needs to be paid. In the case of many distilled products, the taxes add far more to the retail price than the cost to produce it. For those who like to deal with things that, "Just fell off a truck", liquor is a favorite since they can radically undercut the wholesale price. Of course, the government still holds the maker liable for the tax since once on the loading dock it is no longer under bond. If this is of interest to you, I recommend the book Proof by Dick Francis. An excellent English mystery writer and former jockey, he is a favorite of horse people as the stories always include an element of that lifestyle. In the case of Proof, a wine merchant get mixed up in a scam that launders money from stolen and falsely labeled beverages through the sales of race horses.

Now to the apology. In my comments about Cayucos Cellars, I mentioned their small level of production. I stated, unfortunately, the number of annual cases (500) as barrels. Big oops, thankfully pointed out to me by owner/winemaker Stuart Selkirk, who has no plans to make as much wine as I suggested. Hopefully I can shortstop some man in black with a clipboard from stopping by, dreams of unexpected revenue dancing in his head. Since there are only about 25 cases in a barrel, Cayucos needs only about 20 barrels, while my version would yield about twelve thousand more cases than they make!

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