Joseph Phelps: Uncorked!

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Hawaiian Punch may not come from Hawaii, but thanks to Assemblywoman Pat Wiggins, State Senator Wes Chesbro, and California Governor Gray Davis, beginning on January 1, 2001, wines using Napa appellation names as a brand reference will have to come from Napa County. Governor Davis' signature on state Senate Bill 1293 closes, for Napa County, a federal labeling loophole that permits the misuse of brand names that have geographic and viticultural significance.

The BATF (Bureau of Alcohol, Tobacco and Firearms), which regulates wine labeling, addressed the issue of mis-descriptive brand names during the mid-eighties. Federal rule changes issued in 1986 prohibit the use of a geographic brand name when the wine in the bottle does not meet the minimum grape content requirement of the AVA (American Viticultural Area) or county or state appellation used in the brand name. For example, this means that the grapes used to make a new "Napa Caves" brand of wines would have to meet either the 75% grape content rule for Napa County or the more restrictive 85% grape content rule for the Napa Valley appellation.

A controversial loophole in this rule-making change was created when BATF elected to "grandfather" those brand names in use prior to 1986. That is, geographic brand names can continue to be used even if the wine isn't made from grapes grown in the area referred to in the brand.

The Napa Ridge label has been at the epicenter of this issue for more than a decade, but heightened awareness among Napa Valley Vintners came in 1994, when Bronco Wine Company purchased the Rutherford Vineyards and Rutherford Vintners trade names just one year after the Rutherford AVA was established by the BATF. Although the prior owners of those brands, the Skodas, had never made non-Napa Valley wine, Bronco was able to do so under the "grandfather" rule.

The fact that Napa, as an older grapegrowing area, has many pre-1986 geographic brand names which could be sold and then used on non-Napa wines prompted the Napa Valley Vintners Association to convene the Winegrower Appellation Committee (WAC) to study labeling issues for the purpose of protecting the integrity of the Napa Valley Appellation. The committee developed a proposal for new state legislation that would provide immediate relief from deceptive and predatory marketing practices.

During the course of the committee's work, two news items increased public awareness of the issues. In January of 1999, Napa County approved Bronco Wine Company's plans for a bottling facility in south Napa County which would be permitted to produce 18 million cases (more than double the entire production of the Napa Valley). In April of 2000, Beringer Wine Company announced the sale of the Napa Ridge label and inventory to Bronco Wine Company for a reported 42 million dollars.

Throughout the winter and spring of 2000, WAC committee members worked with The Wine Institute Public Policy Committee to construct a proposal for rule-making changes to be presented to the BATF. The process achieved several constructive suggestions, but consensus was not achieved over the controversial issues related to geographic brand names. It became clear to the Napa Valley Vintners Association that a district bill presented to the state legislature was the only viable option for protecting the integrity of the Napa Valley appellation. The Wine Institute demurred to the wishes of the Napa Valley members by allowing the bill to go forward without opposition.

The legislative battle that ensued in Sacramento was widely reported as a struggle between Bronco Wine Company and the Napa Valley Vintners Association. Unfortunately, such reporting widely misses the mark. From my perspective, the issue has always been about the integrity of an emerging American appellation system and Napa Valley's ability to effectively compete with labeling standards that are more clearly defined in European tradition and law. The passage of SB 1293 moves Napa closer to that goal.

"For more than a century, Napa County wines have been renowned for their quality," said Governor Davis. "This legislation will end consumer confusion and deceptive marketing, and protect the reputation of Napa Valley wines."

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