TTB Proposed Wine Labeling Revisions
The Alcohol and Tobacco Tax and Trade Bureau (TTB) has proposed
wine labeling revisions to address concerns about the accuracy of labeling
information for wines that contain more than 7-percent alcohol by
volume but are exempt from label approval requirements. According to
TTB, the regulations that govern wine labeling include (i) 27 CFR 24,
which requires wine containers to feature “the name and address of the
wine premises where bottled or packed; the brand name; the alcohol
content; the kind of wine; and the net contents of the container,” and (ii)
27 CFR 4, which governs “the use of one or more grape variety names as
a type designation, the use of type designations of varietal significance,
the use of vintage dates, and the use of appellations of origin on wine
labels,” such as the use of American viticultural area (AVA) names. Wines
not intended for interstate or foreign commerce, however, may apply for
a certificate of exemption from label approval under Part 4.
The proposed rule would amend 27 CFR 24 to clarify that even wines
with a certificate of exemption must comply with the appellation of origin
rules laid out in 27 CFR 4. “Some wine industry members have contacted
TTB with their concerns regarding the accuracy of label information on
certain wines covered by certificates of exemption from label approval,”
states TTB, which also received a letter from congressional delegations in
California, Washington, Oregon and New York. “Specifically, the wines in
question are standard wines labeled with AVA names, but the wines do
not appear to meet the part 4 requirements for using an AVA name.”
As an example, TTB notes that a wine bottled and sold only in Illinois—
and thus exempted from labeling approval—can currently use a “Napa
Valley” designation, even though the wine does not meet Part 4’s requirements
for using an AVA name, that is, (i) “the AVA name must have
been approved under 27 CFR part 9”; (ii) “not less than 85 percent of the
wine must be derived from grapes grown within the boundaries of the
viticultural area”; and (iii) “the wine must have been fully finished within
the State, or one of the States, within which the labeled viticultural area
is located (except for cellar treatments permitted by 27 CFR 4.22(c) or
blending which does not result in an alteration of class and type under 27
CFR 4.22(b)).”
As the TTB explains, “The revised rules would require that a standard
grape wine that contains 7 percent or more alcohol by volume and is
covered by a certificate of exemption from label approval may not be
labeled with a varietal (grape type) designation, a type designation of
varietal significance, a vintage date, or an appellation of origin unless the
wine complies with the relevant part 4 provisions for that label information.”
See TTB Press Release, June 21, 2016; Federal Register, June 22,
2016.
Issue 609
