Wines & Vines

14 WINES&VINES February 2018 WINE INDUSTRY NEWS Shop online: gwkent.com GWKent1985 Tools of the trade E Q U I P M E N T | I N G R E D I E N T S | S U P P L I E S info@gwkent.com W ashington, D.C.—When the TTB pub- lished proposed regulation 160B, which would close a loophole that allows wineries to use AVA names on wines made using grapes from other states, the bu- reau was inundated with comments on both sides of the issue. The official comment period closed Jan. 9, but controversy remains. Wine Institute, Napa Valley Vintners and the Oregon Winegrowers Association sup- ported the change, but other commenters argued forcefully against it. "I've not seen any fact-based argument on how the current labeling loophole undermines the system," said John Aguirre, president of the California Association of Winegrowers (CAWG). "What's the evidence? By what measure?" The "loophole" refers to COLA label ap- provals. Wine made with out-of-state grapes may be marketed and labeled with AVAs, but only if the product is sold within the winery's home state. The association leader understands that AVAs selling high-value grapes would like to close the loophole, but he insists more informa- tion is needed before a ruling is finalized. Dur- ing discussions with CAWG's board of directors, growers considered where the grapes are grown to be most significant. "We think this issue is very important. There are core principles in play," he said. Even with modern refrigerated trucks, it's possible grapes might lose quality on a cross-country journey. "Growers are highly motivated to retain quality for the long haul." Michael Kaiser, vice president of WineAm- erica, said the nationwide winery association remains neutral on the issue. It's polarizing in the industry, he acknowledged, and mostly a marketing question. A Georgia-based WineAmerica member who imports Napa Valley grapes and used the in-state-only sales exemption on its labels was caught selling its "Napa Valley" wines online, which prompted officials in California to re- quest the 160B rule change in 2016. Kaiser predicted, "We'll probably see some- thing in the spring" from TTB. A fifth-generation farmer in Lodi, Calif., whose family has been growing grapes since 1965, strongly opposes the change. Although his ranch did not sell any grapes out of state in 2017, Bruce Fry, vice president of Mohr-Fry Ranches, is a proud beneficiary of Lodi's strenu- ous marketing efforts. He claims out-of-state sales can be a lucrative marketing alternative for grapegrowers. Fry went through a California Farm Bu- reau leadership program that included a field trip to the Midwest. At a Missouri winery, he TOP STORY Should Out-of-State AVA Use Be Legal? "I've not seen any fact-based argument on how the current labeling loophole undermines the system." —John Aguirre, California Association of Winegrowers

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