With its sun-washed stone walls, arched windows, and domed bell tower, the headquarters of Haak Vineyards & Winery looks like an old Spanish mission. Behind the building, acres of vineyards encircle a picnic area and patio. The charming winery in Santa Fe, a small town about 25 miles south of Houston, is bringing the promise of the Texas wine industry to a region where such grapes have never been grown before.

"Texans are pioneers," says owner and winemaker Raymond Haak, a retired instrumentation engineer who did well in the oil industry. "We love challenges." Texas A&M extension agents told Haak that the Gulf Plains were no place for wine grapes. But Haak built his operation here anyway. And the tangle of thick vegetation outside would suggest that his grapes are doing quite well. "With its warm breezes and microclimate, [Santa Fe] is an excellent location for growing grapes," brags the Haak Web site.

On this August afternoon, the crush is in full squish. Giant plastic bins full of dark red grapes are carried by forklift to a huge de-stemming machine. The partially crushed grapes are then piped through a wide plastic hose to a bladder press, which will squeeze out the bright red juice. It looks just like a small winemaking operation in Napa or Oregon. But appearances can be deceiving.

Haak's operation is typical of the new breed of small wineries in Texas. Owned by amateurs and retirees, they pay the rent by selling modestly priced picnic wines from their tasting rooms. You will probably never see the products from these wineries in your local supermarket. They produce minuscule amounts of wine. "We're in the entertainment industry," says Haak, whose winery produces 3,500 cases a year.

On September 1, new legislation granting wineries special exemptions from the state's liquor laws takes effect. Depending on your point of view, these new laws will bring either the second coming of the Texas wine industry or its further stagnation. Small winery owners like Haak are excited. But industry experts contend that the Texas Alcoholic Beverage Commission (TABC) regulations that have been changed aren't the ones that really matter.

This code is an exercise of the police power of the state for the protection of the welfare, health, peace, temperance and safety of the people of the state. -- Texas Alcoholic Beverage Code   NEXT »

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