<!DOCTYPE html>
<html>
<head>
<meta http-equiv="content-type" content="text/html; charset=UTF-8">
</head>
<body>
<div align="center"><font face="Helvetica, Arial, sans-serif"><img
moz-do-not-send="false"
src="cid:part1.qzGef1HV.l0J72lLT@munsvineyard.com" alt=""
width="188" height="141" align="middle"><br>
<br>
</font></div>
<font face="Helvetica, Arial, sans-serif"><br>
<br>
<b>About the New Santa Cruz Mountains Wine Improvement District</b></font>
<p><br>
<font face="Helvetica, Arial, sans-serif">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. </font><br>
<br>
<font face="Helvetica, Arial, sans-serif"><b>What does this mean
for our wineries and growers?</b></font></p>
<ul type="disc" style="margin-bottom: 0in;">
<li class="MsoNormal" style="margin: 0in;">
<p><font face="Helvetica, Arial, sans-serif"><b>Wineries within
the WID boundaries</b> will now contribute to regional
marketing and promotion efforts through an assessment on DTC
sales rather than SCMWA membership dues. </font></p>
</li>
<li class="MsoNormal" style="margin: 0in;">
<p><font face="Helvetica, Arial, sans-serif"><b>Wineries outside
the WID boundaries</b> will continue as members of the
Santa Cruz Mountains Winegrowers Association as they always
have, with no changes to their participation or benefits.</font></p>
</li>
<li class="MsoNormal" style="margin: 0in;">
<p><font face="Helvetica, Arial, sans-serif"><b>Growers that do
not make wine are not impacted.</b></font></p>
</li>
</ul>
<p><br>
<font face="Helvetica, Arial, sans-serif">
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. </font><br>
<br>
<font face="Helvetica, Arial, sans-serif">
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.</font><br>
</p>
<font face="Helvetica, Arial, sans-serif"><br>
</font>
<p><font face="Helvetica, Arial, sans-serif"><b>More about the Wine
Improvement District:</b></font></p>
<div>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">The Wine Improvement
District will provide a <span data-start="276" data-end="324">consistent,
reliable, and larger</span> 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 <span
data-start="714" data-end="719">all</span> 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. </font></p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">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. </font></p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">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. </font></p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">The County of Santa Cruz
will administer the WID and collection of assessments. </font></p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">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. </font></p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">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. </font></p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">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. </font></p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif"><br>
</font> </p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">Thank you,</font></p>
<p data-start="202" data-end="671"><font
face="Helvetica, Arial, sans-serif">- Mary Lindsay</font></p>
<p data-start="202" data-end="671"><br>
</p>
</div>
<br>
</body>
</html>