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14 WINES&VINES April 2015 California sues Gallo Glass Co. The California Attorney General's Office filed a lawsuit Feb. 27 against Gallo Glass Co., the bottle-manu- facturing arm of Modesto, Calif.- based wine corporation E. & J. Gallo Winery. The suit, filed on be- half of the state's Department of Toxic Substances Control, alleges that the company improperly la- beled and disposed of hazardous waste including lead and arsenic used in the bottle-making process. The complaint also alleges that staff was inadequately trained, and that the company did not follow proper reporting procedures following a number of fires at the facility. GWSS found in shipment to Bay Area An inspector from the Marin County (Calif.) Department of Agriculture found a glassy-winged sharpshooter (GWSS) Feb. 26 in a nursery ship- ment originating from Ventura County, Calif. GWSS is known to spread the deadly grapevine virus Pierce's disease. The shipment was returned, and Department of Agri- culture staffers placed traps around the neighborhood where the sharp- shooter was captured. Treasury back in the black Bouncing back from a $77.7 million loss incurred during the 2014 finan- cial year ended June 2014, Treasury Wine Estates posted net profits of $32.8 million during the six months ending in December. Melbourne, Australia-based Treasury is the owner of 13 North American wine brands including 9 million-case Beringer Vineyards and 800,000- case Paso 360/Cellar 360. U.S. winery exports total $1.49 billion The United States exported 49.2 million cases of wine worth $1.49 billion during 2014, according to the San Francisco, Calif.-based Wine Institute. Shipments were down 8% by value compared to 2013 and down 16% by volume. The Euro- pean Union received the most ex- ports, followed by Canada, Japan, China, Hong Kong and Mexico. Washington state sets tonnage record Washington state wineries crushed 227,000 tons in 2014, according to the National Agricultural Statistics Service, an 8% increase from the previous record of 210,000 tons set in 2013. The quantity of white wine grapes was up 16%, led by Riesling, which increased 25% over 2013. The $1,110 average price per ton was consistent with the previous year. Newest AVAs approved The Alcohol and Tobacco Tax and Trade Bureau established two new American Viticultural Areas: the Rocks District of Milton-Freewater (Oregon) and the Fountaingrove District (Cali- fornia). The Rocks is the newest sub- appellation on the Oregon side of the Walla Walla Valley AVA, while Foun- taingrove marks the 17th sub-AVA in Sonoma County, Calif. Illinois cracks down on illegal wine shipments The Illinois Liquor Control Com- mission sent more than 100 cease and desist letters to wineries, wine retailers and fulfillment houses the state believes shipped wine with- out a license. The state gave re- cipients five days to apply for a license, bringing them into compli- ance, before reporting violations to common carriers, which would force offenders to find other ship- ping solutions. "If a violation is found to have occurred, your ac- tions may result in serious criminal and tax related penalties," the let- ters stated. TTB approves grape designations Two new grape varieties—Jupiter and Caprettone—are acceptable varietal designations for U.S. wine labels, according to a Feb. 27 dec- laration by the Alcohol and Tobacco Tax and Trade Bureau. Jupiter is a seedless hybrid grape released by the University of Arkansas in 1998, while Caprettone is an early ripening white wine grape grown in Italy's Campania region. City Winery branching out City Winery owner Michael Dorf plans to expand his four-city wine and entertainment business to three new North American locations—At- lanta, Boston and Toronto—by the end of 2016. Dorf's empire includes concert, dining and winemaking fa- cilities in New York City, Chicago and Nashville, while the City Winery property in downtown Napa, Calif., boasts 35 local wines on tap, plus concerts and dining. Brewer-Clifton founders take on investors Investors including master som- melier and wholesaler Ken Fred- rickson acquired a 70% stake in Brewer-Clifton, an 8,500-case win- ery based in Santa Barbara County, Calif. Winery founders Greg Brewer, Steve Clifton and Crystal Clifton re- tain the other 30%. Spoiled Paper Boy costs Truett-Hurst I n s p i t e o f a 9 % i n c re a s e i n sales, Truett-Hurst Inc. posted a second-quarter loss of $474,000 during the fiscal quarter ending Dec. 31. The publicly traded wine company from Healdsburg, Calif., took a loss contingency after a large retailer claimed its inventory of Paper Boy—a bottle-shaped carton containing a bladder of wine—expired on the shelf. Further production of Paper Boy wines is currently on hold. A labor dispute at West Coast ports cost money and productiv- ity for some wineries and businesses serving wine producers and vineyards. While a settlement was within sight, some freight experts close to the wine industry foresaw trouble and ordered clients to ship ahead or find other avenues to transport their products. See page 15. Starting in late January, California wine grape growers started notic- ing suspiciously early signs of bud break. Soon after, vines from Oregon to British Columbia followed suit, leading some to worry about frost dam- age and what's in store for the rest of the growing season. See page 16. LATEST NEWS More detail on the news at winesandvines.com Top Stories The month in perspective The Rocks District of Milton-Freewater Glassy-winged sharpshooter