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Courts to decide what means
In 2000,[link widoczny dla zalogowanych], California passed a "Napa name" law, which declared that a wine using the name "Napa" must contain at least 75 percent Napa County-grown grapes. The law was soon challenged in court by ; it has not yet been enacted.
The California Court of Appeal initially ruled in favor of Bronco, which owns Napa Ridge and Napa Creek wine brands, both of which make wines from grapes outside Napa County. The overturned the decision. Supreme Court to take the case. Supreme Court last week supporting the law.
Bronco,[link widoczny dla zalogowanych], the company behind wines ("Two Buck Chuck"),[link widoczny dla zalogowanych], argues that federal regulation of interstate commerce supersedes California's state law.
Some 62 wineries from 18 states have sided with Bronco by signing a "friend of the court" brief. They say their ability to sell wines under geographic brand names that have been used for decades may be directly affected by the case.
Bronco acquired at least three disputed brand names from other wineries. Napa Ridge was acquired in January 2000 from Beringer (now ) for more than $40 million. Napa Creek, introduced in 1981, was acquired by Bronco in 1993. The Rutherford Vintners brand originated in the early 1970s and was acquired by Bronco in 1994.
Under Bronco's ownership,[link widoczny dla zalogowanych], these brands have been used exclusively to sell wines made from grapes grown outside Napa County. Bronco has built a large winemaking facility in Napa Valley and can thus use other words on the label that some could construe as misleading,[link widoczny dla zalogowanych], such as "cellared and bottled in Napa Valley," though the grapes are trucked in from elsewhere.
Napa Valley Vintners lobbied for the California law to close a loophole created by a 1986 federal wine-labeling regulation. That law banned the use of a label that implies the wine was made from grapes grown in the area suggested by the brand unless at least 75 percent of the grapes were grown in that area. However, a "grandfather clause" exempted brand names in use prior to July 7, 1986.
More distributor consolidation: In the latest consolidation of the wholesale tier of the wine industry, the nation's largest wine distributor is taking a minority equity position in the United Group of Braintree, Mass.
United Group chairman confirmed that Southern Wine Spirits of America Inc. is taking a 25 percent stake in his company,[link widoczny dla zalogowanych], including an outright purchase of United's "control state" operations in North Carolina, Virginia, New Hampshire,[link widoczny dla zalogowanych], Maine and Vermont. United will maintain oversight for Ltd. in Massachusetts.
Two weeks ago, Southern Wine Spirits announced its purchase of Ltd. , a Somerville,[link widoczny dla zalogowanych], N. J.-based importer/distributor operation serving New York, New Jersey and Pennsylvania.
Skipping the middle man: Don Sebastiani Sons has formed a new company - - The Other Guys -- to sell and distribute wines directly to retail accounts in 11 Northern California counties. California law allows vintners to sell wines directly to retail accounts without working with wholesalers,[link widoczny dla zalogowanych]. The Other Guys will mostly handle brands bottled with screw caps.
"The screw caps were so popular that we've decided to don distributor caps,[link widoczny dla zalogowanych]," quipped company spokesperson . In addition to Mia's Playground, Screw Kappa Napa and Fusee, the company will sell Duke,[link widoczny dla zalogowanych], a wine made by
Brown-Forman downsizes: Brown-Forman Beverages,[link widoczny dla zalogowanych], the maker of Fetzer and other brands, is consolidating its wine marketing functions in Louisville,[link widoczny dla zalogowanych], Ky. The company, which also makes 's, will reduce the size of its staff at its San Rafael office, resulting in the layoff of four people.
New wine magazine: World Publications,[link widoczny dla zalogowanych], the publisher of Saveur, is introducing a new magazine,[link widoczny dla zalogowanych], Saveur's Wine Country, which plans to promote wineries, hotels, spas, restaurants and other attractions. The magazine will launch this summer. It will start as an annual edition; World Publications hopes to increase its frequency in 2006 to two issues.
The editor in chief will be , who has been with World Publications since 2001 as editor of and will continue with those duties. He was previously editor in chief of Sunset.
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