Issue link: http://winesandvines.uberflip.com/i/776679
February 2017 WINES&VINES 17 WINE INDUSTRY NEWS ECO-FRIENDLY PLASTIC STORAGE BINS PLASTIC CALLOUS BOXES FOR VINE CLEANLINESS Wonderful Nurseries' ADVANCED TESTING LAB WonderfulNurseries.com WASCO 661.758.4777 SANTA ROSA 707.542.5510 PASO ROBLES 805.237.8914 PREMIER QUALITY FROM NORTH AMERICA'S LEADING VINE NURSERY SERVING THE WINE, TABLE GRAPE, RAISIN AND PISTACHIO INDUSTRIES Leaders raise the bar in everything they do and that's why Wonderful Nurseries continues to set the industry standards for vine cleanliness, improved irrigation methods and product selection. In the last year alone, Wonderful Nurseries has completed a new, state-of the-art greenhouse facility to house 8 million-vines annually, changed from wood to eco-friendly recycled plastic storage bins and callous boxes, and introduced new sanitization techniques. From our 2010 Protocol mother blocks, our advanced testing lab enabling 100% scion testing for internal mother blocks, the innovative Root Sock and more, Wonderful Nurseries strives to provide the cleanest, healthiest vines in the industry. It's how we lead. It's how we grow. brands such as Mer Soleil Chardonnay to make their discounted prices appear to be even more of a bargain. WTSO is facing claims of fraud and could be liable for financial damages based on the initial complaint. Suzanne Schiller, an attorney with Manko, Gold, Katcher & Fox, the firm representing the company, said in a statement to Wines & Vines that while "we will not com- ment on specific allegations in the pending litigation, we are confident that WTSO will be successful in defending the claims in the complaint." Schiller went on to say that WTSO would not have been able to stay in business for more than a decade if it sold wine that did not meet the standards that its members have come to expect. "WTSO stands behind the quality and value of every wine it sells. WTSO's website describes in detail t h e o r i g i n a n d c o n t e n t o f e a c h w i n e and there is no claim that this information is or has been false or deceptive." The original complaint also had named Jonathan H. Newman, a former chair of the Pennsylvania Liquor Control Board who now also is part owner of a wine and liquor whole- sale company in Pennsylvania. Newman's attorney, Patrick J. Loftus with the firm Duane Morris, told Wines & Vines that the complaints against Newman were dismissed before the matter reached the courtroom because his client, who was named as an individual in the complaint, is not affiliated with WTSO and had only sold the company wine as a wholesaler. "He's not an employee, not affiliated, not involved in operations and not involved in how they price their wine." The complaint names 29 wine brands sold as part of WTSO's alleged scheme including established wineries such as Viansa and Eola Hills and brands developed by other wine companies including Moon Meadow and Origami. According to Wines Vines Analytics, WTSO made 694 offers in the past 12 months ending in December. Of those offers, the brands named in the complaint accounted for a total of 114 or 16% of all the offers. Private-label brands or those created by wine companies for retailers, restaurants and other clients aren't new and have become a widespread element of the wine industry. In 2012, the president and CEO of Winery Ex- change, a leading provider of private-label wines, estimated they could eventually account for 25% of the entire U.S. wine market. WTSO then doesn't appear any different from other retailers in selling private-label wine brands, but what's landed it in a legal fight are the online discounts. Other retailers have settled or are fighting class-action lawsuits over similar claims. The state of California successfully sued Over- stock.com for its bargain claims (the retailer has since appealed) and, facing a consumer class-action lawsuit, J.C. Penny agreed to a $50 million settlement for touting big dis- counts on private or exclusive branded goods. The Connecticut-based Truth in Advertis- ing group has traced a significant upturn in the number of class-action lawsuits filed against online and traditional retailers for discounts advertised on the web in 2016. The group reported on the WTSO lawsuit in April. —Andrew Adams "WTSO stands behind the quality and value of every wine it sells." —Suzanne Schiller, attorney, Manko, Gold, Katcher & Fox