Santa Barbara County has taken significant steps to bolster its wine industry by approving the establishment of a Wine Business Improvement District (BID), which will impose a 1% assessment on direct-to-consumer winery sales, particularly affecting the regions' tasting rooms, wine clubs, events, and other related sales.
The Santa Barbara County Board of Supervisors unanimously greets this initiative, which aims to raise approximately $1.65 million annually to support marketing efforts led by the Santa Barbara County Vintners Association. During the board's meeting on February 11, 3rd District Supervisor Joan Hartmann remarked, "It seems to me this is a way for the wineries across the board to pool their resources and advertise the Santa Barbara brand. You’re going to be promoting our whole region. … I don’t think 1 percent is a big deal." Her comments reflect the prevailing view among supporters of the BID, who believe uniting their marketing power is key to enhancing the visibility of Santa Barbara wines.
Despite the strong backing from 129 wineries, which boasts around 60% of the county’s average wine sales, not all players were on board. Just four wineries opposed the establishment of this district, which represented less than 2% of the market share. Local officials and the county Deputy CEO Brittany Odermann indicated the necessity of addressing potential legal challenges. "The agreement between the county and the Vintners Association would indemnify the county," she explained, outlining protective measures taken during negotiations.
The road to approval was not without drama. Initially, one significant holdout was the Lompoc City Council, which on January 21 narrowly voted against the district due to potential conflict of interest concerns, with Councilmember Victor Vega being the lone detractor. Vega voiced skepticism about the district, stating, "We are actually imposing a tax on them, and we have no control. I just have a problem with us approving an on-going tax without control after it is imposed." Vega's concerns marked clear trepidation among local representatives on how the BID would impact smaller wineries.
Following the council's initial rejection, Vega sought more information before changing his stance. A special meeting convened on February 7 reignited discussions, leading to Vega's eventual support. "I was kind of surprised," he stated, alluding to the unexpected turn of events during council meetings and the urgency of ensuring local interests were recognized alongside the broader regional initiative.
Even though some council members remained conflicted over how the Vintners Association would administer the funds and whether it would adequately assist smaller wineries, support grew. Particularly, Councilmember Dirk Starbuck aired his concerns about equality, emphasizing, "I’m very conflicted about whether it’s going to provide value to our small vendors. When you use the word Santa Barbara County around me, it gets me hackled."
Nonetheless, Vintners Association CEO Alison Laslett committed to creating an inclusive environment for local wineries. During the February 7 meeting, she assured council members, "There’s certainly a learning curve… but it is never intended any winery with more sales has more of a say." Laslett emphasized the district was structured to represent all wineries equally—a reassurance aimed at alleviating concerns among local officials and winemakers.
The decision to approve the BID marks what many see as a pivotal point for the Santa Barbara wine industry. Following the approval, the association is expected to grow its membership to over 300 members, creating greater opportunities for representation and diversity within the local wine community.
With this pivotal change, wineries across Santa Barbara County are hopeful about the forthcoming benefits as they work to showcase and promote the local wine brand effectively, thereby drawing more attention and customer interest both regionally and beyond. By aligning their interests through the formation of the BID, local wineries aim to advance their standing in the competitive wine market.