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

Tue Nov 4 23:08:17 GMT 2025

SCM WID “Cliff Notes” summary:

1.	The WID assessment replaces SCMWA annual dues to fund the regional marketing done by the SCMWA.
2.	The assessment is 1% of a winery’s DTC sales within the WID boundary.  DTC sales outside the WID area as well as wholesale sales are not assessed.  Since the WID funding formula differs from the prior SCMWA funding formula, the annual cost will also differ from what SCMWA members paid in the past.
3.	All wineries within the WID boundary are required to pay the WID assessment, whether or not they were formerly SCMWA members.
4.	The SCMWA manages the programs that the WID assessment funds.  WID wineries approve the programs, like the past when SCMWA members approved SCMWA programs.

Regards,

Ed Muns

Muns Vineyard

(408)515-2663

From: VASCM <vascm-bounces at lists.kkn.net> On Behalf Of Ryan Stirm
Sent: Tuesday, 4 November, 2025 14:03
To: Richard Alfaro <rfalfaro at aol.com>
Cc: vascm at lists.kkn.net
Subject: Re: VASCM: Santa Cruz Mountains Wine Improvement District Approved and Becomes Effective in 2026

Hard to see how much "benefit" this will bring the average SCM winery... seems more like a tax on the producers added during an already challenging time in the wine business.

On Tue, Nov 4, 2025 at 1:22 PM Richard Alfaro via VASCM <vascm at lists.kkn.net <mailto:vascm at lists.kkn.net> > wrote:

Out of state DTC are not part of the WID

Sent from my iPhone

On Nov 4, 2025, at 1:09 PM, Mary Lindsay <mary at munsvineyard.com <mailto:mary at munsvineyard.com> > wrote:

<VASCM_logo_Final.jpg>

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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-- 

Ryan Stirm

STiRM Wine Co.
925-330-4422

ryan at stirmwine.com <mailto:ryan at stirmwine.com> 

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