Monday, January 25, 2010

New Wine Labeling Law in Effect in Washington

On December 31, 2009, new wine labeling laws went into effect due to legislation that was passed unanimously by the state legislature. The new Washington law requires that any wine with a label claiming or implying that its contents are from Washington must contain at least 95 percent Washington-grown grapes.

Federal law is similar to the old Washington law, in which the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) allows a wine to use the name of a state on its label, as long as 75 percent of the grapes used in the production of that wine come from that particular state. Federal requirements for AVA indications on the label are even more stringent. In order to use the more specific name of a particular American Viticultural Area (AVA) on a wine label, the TTB requires that 85 percent of the grapes used be from the particular AVA stated on the label. But now the new Washington law is more stringent that federal law, increasing the content requirements to 95% beginning in 2010.

Why would labeling wine with a higher percentage of grapes from a particular state or a particular AVA be desirable? For one, it strengthens the reputation of anything branded as a "Washington" wine, so the consumer knows they will be drinking a wine that has a very high percentage of grapes grown in this state, and if they like what they taste, they know the quality of the beverage is attributable to Washington-grown grapes. Same principle applies to the AVA denotation.

Washington wines certainly have a lot to be proud of and the new law will undoubtedly strengthen the reputations of Washington wines.

Tuesday, January 5, 2010

Champagne Continued

Laws governing the use of the name Champagne on a bottle of sparkling wine are rooted in the legal protections established in the early twentieth century. The area of France currently known as Champagne where champagne is produced was established by law in 1927 when an earlier law was adapted and a second Champagne zone was added to the official Champagne region, which enabled farmers from the Aube and Seine-et-Marne region to deliver grapes for Champagne. The production area, known as ‘la Champagne’, is spread over 312 villages. It consists of the entire Region of Champagne-Ardennes plus the departement of Yonne (in Burgundy, to the south), Aisne (in Picardie, to the west), Seine-et-Marne (in île-de-France, to the west, south of Picardie), and Meuse (in Lorraine, to the east).

The production of Champagne is centered around the cities of Reims, Châlons-en-Champagne and Épernay. The composition of the subsoil, combined with Champagne’s micro-climates, determines the subtle differences between each cru (cru = "growth place") and influences the characteristics of individual wines. Although other French wine-producing regions claim to have made sparkling wine earlier, this area was the first place to produce the bubbly beverage in significant quantities.

The trademark of Champagne is one of the best protected trademarks in the world. The "Comité Interprofessionnel du Vin de Champagne (CIVC)”, an organization in France established to protect the rights of champagne producers, uses its efforts to prevent any improper use of the name. CICV has been very successful in Europe. Within the European Economic Community (EEC) their guidelines have been established as law.

There were earlier incarnations of the laws protecting the use of the term Champagne, and limiting it to sparkling wine produced in a well-defined region of France. In December 1908 the French government decided that Champagne could only be called Champagne if the grapes originated from a neatly defined area in the Marne and Aisne area. This immediately antagonized the winegrowers outside of the area who had for many years delivered their grapes to the Champagne makers. The farmers from the Aube area were incensed.

In February 1911 further guidelines were established which would penalize manufacturers who used grapes from Aube for their Champagnes. This triggered the infamous Champagne riots. These riots ran amok and on April 11, 1911, 5,000 angry Champagne farmers from the Aube region joined forces and stormed through the official Champagne region, rioting and demolishing everything within their reach. As the story is told, streets were flowing with wine and Champagne. 40,000 "peacekeepers" were summoned and ruthlessly "restored" law and order. Damage to the infrastructure of the region and the Champagne houses was left in their wake.

In June 1936 the Appelation d’Origine Controlée (AOC) for Champagne was established. At that time it was necessary to include that distinction on the label. As it stands today, Champagne may only be called Champagne if produced from grapes originating from an area that has been approved by the AOC.

Friday, December 25, 2009

The Champagne Name and Labeling

Celebrating the winter holidays often means enjoying a bottle of bubbly wine, since its effervescence seems to announce a fete. But not all bubblies may be called "champagne" and beware the use of this word on the label. The use of the name Champagne is regulated by U.S. laws and international agreements.

"But European producers have long recognized the importance of "terroir"—that wine made from grapes grown in a particular location will have a unique taste. The word "terroir" has no English translation. It means place, certainly, but also it implies soil characteristics, climate, and altitude, for example."
from: The Sparkling Wine War; Pitting Trademark Rights Against Geographic Indications. Business Law Today. By Carol Robertson.

Champagne, like any other varietal, is so named because of its place of origin. There are other equally delicious sparkling wines from France that cannot be called Champagne because they come from regions such as Alsace, Burgundy, or the Loire Valley. Under U.S. law, bubbly wines should be denominated "sparkling wine" and not "champagne."

However, a legal loophole in federal law that allows some U.S. sparkling wine producers to mislead consumers by labeling their products “Champagne” even though they do not come from Champagne, France. Champagne, France has formed solidarity on these efforts to correct the misleading terminology with leading American wine regions such as Napa Valley, Willamette, and Walla Walla, some of whose names have also been misused in Europe and Asia.

On December 20, 2006, Congress passed legislation banning the future misuse of 16 wine place names, including Champagne. Nevertheless, the legislation did not address the grandfathering of labels currently incorrectly using Champagne’s name and those of 15 other international wine regions.

The Alcohol and Tobacco Tax and Trade Bureau (TTB, an agency in the Department of Treasury) explains, "Following years of negotiations, the United States and the European Union (EU) signed an agreement on trade in wine on March 10, 2006. In the agreement the U.S. committed to seeking to change the legal status of the semi-generic names to restrict their use solely to wines originating in the applicable EU member state with certain exceptions, in particular, a “grandfather” provision. Under the “grandfather” provision, any person or their successor of interest may continue to use a semi-generic name on a label of wine not originating in the EU provided the semi-generic name appeared on a Certificate of Label Approval (COLA) that was issued prior to March 10, 2006. It should be noted that the requirement to use the name in direct conjunction with an appropriate appellation of origin disclosing the true place of origin must have been satisfied in order to have received the “grandfathered” Certificate of Label Approval."

Recently Congress has begun to focus on the issue. Members of Congress sent a letter to the Secretary of the Treasury urging a review of the TTB’s wine labeling system.

Enjoy a champagne or sparkling wine for the holidays, but knowing where your wine originates is half the fun of enjoying an effervescent bubbly. Happy holidays, everyone.

Wednesday, December 23, 2009

Welcome to our new Blog

You've found the blog for Natural Resource Law Group, PLLC from Seattle, where we will be blogging about legal aspects of wine production and sales, the food and beverage industry, wine issues in the news, and other related topics. Wine is a burgeoning industry in the Pacific Northwest, and our focus will naturally be on our region, but we will blog about the law of wine and beverages as it applies nationwide and internationally, as well.

Holiday cheers and happy winemaking,

Jill J. Smith, Principal
Natural Resource Law Group, PLLC
Seattle, WA