Issue link: http://winesandvines.uberflip.com/i/131907
MARKETING Why Vintners Can't Sign Bottles And other absurd restrictions in California alcohol regulation By Paul Franson E xperts at the Best Practices in Winery Operations conference this spring in Napa, Calif., discussed topics such as social media, evaluating vineyard property and contract winemaking. But the most lively sessions at the two-day event sponsored by the Seminar Group were an update about California's onerous tied-house laws and holding events in Napa County, which has the most restrictive regulations for winery events in the United States. 'Don't tell me what you're doing' Matthew D. Botting, general counsel of the California Department of Alcoholic Beverage Control, presented a summary of updated tied-house rules about contests and sweepstakes as well as a seemingly trivial bill that uncovers a dirty little secret: It's illegal for winemakers or vintners to sign wine labels at their wineries or restaurants. A new law allows them to sign labels at retailers under strict restrictions, however. Clearly appreciating the absurdity of some of the trivial restrictions, Botting held up the phonebook-size summary of alcohol laws in California and pointed out a concept foreign in most American life: When it comes to alcoholic beverages, you start with nothing. You can only do what your permit specifically allows you. All else is forbidden. Replying to a few questions from the audience, Botting exclaimed, "Don't tell me what you're doing!" He admitted that the ABC is unlikely to make a priority of busting label signers, but they do take the tied-house laws seriously. These laws were set up after Prohibition to prevent beer, wine and spirits manufacturers from owning bars and restaurants and unfairly monopolizing the business. The laws established the three-tier systems and carefully control relations between the tiers. For example: Wineries can't give anything of significant value to retailers or restaurants and bars. Signing a label is considered of value, which is why a specific rule had to be added to permit it. The consumer has to buy the bottle first, not as a condition WINERY/RETAIL/TASTING ROOM & CRAFT SHOP 65 Total acres; 12.5 acres established vineyards. 17 Additional tillable, suitable for vinifera grapes. Also 4 rental cabins, small petting zoo, 2 small outbuildings & equipment. Pond, stream & waterfall as well as Cayuga Lake views! $1,200,000 Call for our latest inventory! Mel Russo Licensed Real Estate Broker/Owner Office: 315-568-9404 Cell: 315-246-3997 52 W in e s & V i ne s J U NE 2 0 13 97 Fall Street, PO Box 386 Seneca Falls, NY 13148 website: www.senecayuga.com e-mail: senecayuga@aol.com A new California law allows winemakers to sign wine labels at retailers under strict restrictions, but not at their wineries or restaurants. of the signing, and the consumer can have the winemaker sign something else such as a piece of paper. Rules for sponsoring contests Contests and sweepstakes are a bigger issue. Until last year, wineries couldn't hold contests that gave consumers prizes, leading to the absurdity of Californians being the only Americans who couldn't win prizes in Sutter Home Winery's Build a Better Burger contest. New provisions let wineries conduct their own consumer contests and sweepstakes as well as sponsor consumer sweepstakes for other companies. (Previously they could sponsor contests by providing prizes.) There are lots of restrictions, including: • No one under 21 can enter. • ou can't require the purchase of alcohol for entry or extra Y chances to win.