VASCM: Santa Cruz Mountains Wine Improvement District Approved and Becomes Effective in 2026

[Mary Lindsay]

*About the New Santa Cruz Mountains Wine Improvement District*


On Oct. 21 the Santa Cruz County Board of Supervisors voted to approve 
the Santa Cruz Mountains Wine Improvement District (SCMWID), the final 
step in making the WID a reality. More on what this means and details 
below. The SCMWA has been working on the WID for the past year, securing 
a weighted almost 80% of local winery support through petitions. All of 
the jurisdictions included in the WID boundary where wineries are 
located voted to approve:  Counties of Santa Clara, Santa Cruz, San 
Mateo; Cities of Santa Cruz, Watsonville, Capitola, Scotts Valley, 
Saratoga; Towns of Portola, Los Gatos, Woodside.

*What does this mean for our wineries and growers?*

  *

    *Wineries within the WID boundaries* will now contribute to regional
    marketing and promotion efforts through an assessment on DTC
    sales rather than SCMWA membership dues.

  *

    *Wineries outside the WID boundaries* will continue as members of
    the Santa Cruz Mountains Winegrowers Association as they always
    have, with no changes to their participation or benefits.

  *

    *Growers that do not make wine are not impacted.*


The District boundary roughly (but not exactly) follows the AVA 
boundary, and all wineries within the WID boundary will be part of the 
WID and required to pay a 1% assessment on all DTC wine sales (more 
about this below). If this affects you you will receive notification 
about this requirement, schedule and payments, to start in 2026.

All wineries—both inside and outside the district—remain valued members 
of our broader Santa Cruz Mountains wine community. Everyone will 
continue to have opportunities to engage in SCMWA’s marketing programs, 
events, and promotional efforts that elevate awareness of our region’s 
unique character.


*More about the Wine Improvement District:*

The Wine Improvement District will provide a consistent, reliable, and 
larger pool of funds dedicated solely to growing the visibility, 
reputation, and sales of wines from our region. While the Association 
(SCMWA) does important work, it is voluntary and funded by annual dues, 
which means budgets fluctuate based on membership participation and 
economic conditions. This limits both the scale and continuity of 
marketing efforts. The WID will ensure that all wineries that benefit 
from the region’s wine identity contribute proportionally. This creates 
both equity (everyone shares the cost) and critical mass (larger, stable 
funding) to support marketing efforts promoting our wine region.

The WID will not replace the SCMWA but will operate alongside it, with 
the same Board of Directors. Funding is accrued with a 1% assessment on 
all DTC wine sales, which wineries can pay themselves or pass through to 
consumers. Wineries will no longer pay dues to the Association (SCMWA). 
This does not effect the VASCM, which will continue with our nominal $50 
annual dues.

Assessments paid through the WID are expected to exceed $400,000 this 
first year, starting in 2026. These funds will be used for marketing the 
Santa Cruz Mountains wine region, its wineries, wines and vineyards to 
promote tourism and sales.

The County of Santa Cruz will administer the WID and collection of 
assessments.

Wine Improvement Districts are legal entities allowed by the State of 
California, and several wine regions have implemented them, including 
Temecula, Amador, Santa Barbara and Livermore, raising large funds to 
market their regions. With the current economic challenges facing the 
wine industry (including our local wineries) and in order to remain 
competitive in a changing market, the SCMWA Board decided to pursue the 
formation of a WID as an alternative fund-raising source to its 
dues-based membership.

Through consistent funding the WID ensures continuity, fairness, and 
stability - preventing outcomes such as the recent dissolution of the 
Monterey County Vintners and Growers Assn.  The SCMWID is an investment 
in the continued strength of the Santa Cruz Mountains AVA.

If you think you are part of the new district (selling wine DTC) and 
have questions, please reach out to me and I will see how I can assist. 
A detailed presentation is available upon request.


Thank you,

- Mary Lindsay


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