Category: Financial

Permit-Required Confined Spaces

Cyndi
Occupation Safety and Health Act

By: Steven R. Sawyer, ARM, MS, CSP

As many employers have learned over the last few years, employees are a valuable resource.  The ability to find and keep employees has become a challenge for many employers in a variety of industries, including food and beverage agriculture.  Therefore, keeping employees safe is a top priority.

  Employers in the food and beverage agriculture industry, like vineyards and wineries, may have multiple confined spaces in which employees encounter in their daily job tasks.  These include vats, tanks, storage bins, tunnels, duct work, pits, drain systems, and liquid tanks and containers.  Many industry employees are required to enter these spaces as part of their jobs.

  Occupational Safety and Health Administration (OSHA), in their Permit-Required Confined Spaces standard 29 CFR 1910.146, describes a confined space as a space that is large enough for an employee to bodily enter and perform assigned work tasks, has a limited or restricted means of entry or exit, and is not designed for continuous employee occupancy.  Additionally, OSHA defines a Permit-Required Confined Space as a confined space with one or more of the following characteristics:  the confined space contains or has the potential to contain a hazardous atmosphere; the confined space contains a material that has the potential for engulfing the entrant; the confined space has an internal configuration with inwardly converging walls or a floor that slopes downward and tapers to a smaller cross section which could trap or asphyxiate an entrant; and contains any other recognized serious safety or health hazard. (OSHA.gov)

  The first step in protecting employees from the hazards of confined spaces is to evaluate the workplace to determine if the workplace contains permit-required confined spaces.  An initial survey or workplace evaluation should be conducted to locate and identify all confined spaces.  This initial workplace evaluation should be conducted by a qualified person who is familiar with the hazards and types of confined spaces.  Although this is the initial step, workplace evaluation must be ongoing for confined spaces which may change over time with the addition of new processes, equipment, or facilities.

  Once a confined space is identified in the workplace, the confined space should be treated as a hazardous area until a qualified person can determine the specific hazards.  Additionally, the qualified person will determine if the confined space is a permit-required confined space or a non-permit confined space.  Hazards an evaluator will look for include atmospheric hazards such as oxygen deficient or toxic atmosphere, biological hazards, mechanical hazards, physical hazards, and chemical hazards.

  If the qualified person has found permit-required confined spaces at the workplace, the employer must notify the employees.  Employees must know their workplace contains permit-required confined spaces, where the spaces are located and the hazards associated with those spaces.  Then, the employer must post signage to inform the employees of the permit spaces.  This signage can read “Danger – Permit-Required Confined Space, Do Not Enter” or a similar statement.  The signs should be posted on the entrance or in close proximity to the entrance of the permit space.

  At this point, an employer has a decision to make about their Permit-Required Confined Spaces:  either allow employees to enter or do not allow employees to enter.  If the employer makes a decision to not allow employees to enter permit spaces, then the employer should take effective measures to secure the spaces.  Some examples of securing permit spaces to prevent entry are padlocks, bolts, chains, and wire cables.

  If entry is necessary for employees to service or clean permit-required confined spaces, the employer must develop and implement a written permit-required confined space program and make the program available for employee inspection.  This written program should include written entry procedures for the permit-required confined spaces along with the hazards present, and how to eliminate or control the hazards. 

  The written permit-required confined space program should include an entry permit.  The entry permit is a document to be used for all permit-required confined space entries.  The entry permit should include the date of entry and authorized duration of the entry, the location of the entry, the names of all entrants, and the work that is being conducted in the confined space.  Additionally, the permit must include the names of attendants, the name of the entry supervisor, the hazards present in the space to be entered, how the hazards will be eliminated or controlled before entry, acceptable entry conditions, results of initial and periodic tests performed along with the names of the testers and when tests were performed, rescue and emergency services to contact in the event of an emergency, communication procedures between the entrant and the attendant, equipment necessary including personal protective equipment, testing equipment, communication equipment, alarm systems, and rescue equipment, other information deemed necessary for safe entry, and any additional permits such as hot work permits.  Lastly, the permit should have a signature line for the entry supervisor to authorize the entry, including the date and time of the entry.  The entry supervisor should communicate the contents of the entry permit to the authorized entry personnel and may wish to post the entry permit in a designated location.

  OSHA requires that employers provide training for all employees who must work in permit-required confined spaces.  The training should occur before the initial work assignment, when job duties change, employee performance deficiencies occur, or when the permit-required confined space program changes or operations change.  Although it is not required to train all employees to the extent of the authorized entrants training, it is a best practice to inform all employees of the confined spaces present in the workplace and the hazards that accompany the confined spaces.  

  If entry is required in a permit-required confined space, the employer must provide an authorized entrant (the person who enters the space and conducts maintenance or cleaning operations), an attendant (a person who remains outside of the confined space), and an entry supervisor (the person who oversees the entry operations and ensures the entrants follow the permit and are safe).  These personnel have specific duties that must occur to ensure safe entry into permit spaces.  Their duties must be followed in order to comply with the OSHA Permit-Required Confined Spaces standard.

  When the entry into the permit space is complete, the entry supervisor terminates the confined space entry.  The entry supervisor can also cancel the entry of the confined space if the conditions within the space are no longer safe for the entrant.  As a best practice, when the entry is complete, a debrief should be conducted with the entry personnel to determine if any changes are needed for future entry procedures.  Employers are required to keep canceled entry permits for one year.  Any deviations or problems with the entry should be noted on the canceled permits.

  Even with a permit-required confined space program in place, emergencies can happen.  It is important that local emergency responders are aware of the specific hazards associated with confined spaces in the workplace.  Invite local emergency agencies to the workplace and evaluate their knowledge of confined space rescue, their rescue equipment, and their capabilities. 

  Having a permit-required confined space program in place will help vineyards and wineries avoid catastrophic incidents and costly OSHA citations.  To learn more about Permit-Required Confined Spaces, go to osha.gov or ansi.org.

  Steven R. Sawyer, ARM, MS, CSP, is the owner/operator of LSW & Associates Safety Consulting Services, LLC.  Sawyer has been active in the safety industry since 1999, much of that time working with multi-faceted, high-hazard agribusinesses, developing a special expertise in grain bin engulfment and prevention; OSHA grain handling standards; lockout/tagout (LOTO); machine guarding; confined spaces; heavy equipment and specialized equipment operations; and safety program development and training.

Website:  sawyersafetysolutions.com

Should I Open Up a Claim?

Cyndi
close-up of a plant crop

By: Trevor Troyer, Agricultural Risk Management

When to open up a claim on your grape crop insurance is important.  A lot of growers say that don’t know if they have a payable loss early in the season.  With grape crop insurance you are covering an average of your production per grape variety. Depending on what coverage level you have chosen this could mean you have a large deductible or small one.  I agree it is hard to tell how much early season damage will affect tons harvested.

  Mid May this year there was a bad freeze/frost event in the Finger Lakes region of New York.  While late spring frosts are not uncommon, this one was really bad.  There was widespread damage to grape vines across the Finger Lakes.   The extent of the damage is not fully known at this time.  But there will be a reduction in the tons harvested this year for sure.

  In a situation like the above a claim should be opened immediately.  More than likely, due to the severity of the frost, an adjuster will come out and inspect the vineyard.  I always tell growers that they should take pictures of the frost damage that morning.  It is always good to document damage as close to the time it occurred as possible.

  It may be that some varieties of grapes show more damage than others.  This is to be expected as some are more resistant to cold.  And from what I have seen over the years with frost and freezes is that it doesn’t affect a vineyard or field evenly.  You might have more damage on one side of the vineyard or more damage on the lowest part of the blocks etc.  Damage varies but just because one variety or one area looks better than others doesn’t mean that you should not open a claim on that variety or block.

  I know that secondary and tertiary buds will emerge in the next few days or weeks after a freeze.  You should open up a claim now regardless.  The damage may be less than you think and you don’t end up having a payable claim.  But it is still best to get one opened up right away.  Don’t wait to see how many tons you harvest before opening a claim! 

  Here is an excerpt from the “How to File a Crop Insurance Claim” Fact Sheet from the USDA:

  Most policies state that you (the insured) should notify your agent within 72 hours of discovery of crop damage.  As a practical matter, you should always contact your agent immediately when you discover crop damage.

  That same night in May, that saw the frost/freeze in the Finger Lakes region, also saw damage to vineyards along the coast of Lake Erie.  I received calls and emails from growers stating that they had had frost as well.  Obviously, the damage was not as bad as the Finger Lakes, but frost on new buds is not something any vineyard owner wants to see.  I opened claims for all of them even though the extent of the damage was not known.

  I cannot stress enough the importance of opening up a claim early. 

  A lot of claims with grapes are relatively routine.  Once the claim is opened an adjuster will come out and document the damage.  You will continue to grow your crop and try to mitigate any damage received. Once you harvest grapes you will meet with the adjuster and give him your production records that show your tonnage per variety.  He will then adjust the claim based your guarantee (average tons per acre per variety and the price for that variety in the county.)

  In some circumstances you will need to get direction from the adjuster before doing anything.

What are your responsibilities after damage if the grapes have not matured properly and will not?  What if they have been rendered unusable (smoke-taint has been a major cause of this in California)? 

  Here is a section from the Grape Crop Provisions that goes over this:

11. Duties in the Event of Damage or Loss.

In addition to the requirements of section 14 of the Basic Provisions, the following will apply:

(a) You must notify us within 3 days of the date harvest should have started if the crop will not be harvested.

(b) If the crop has been damaged during the growing season and you previously gave notice in accordance with section 14 of the Basic Provisions, you must also provide notice at least 15 days prior to the beginning of harvest if you intend to claim an indemnity as a result of the damage previously reported. You must not destroy the damaged crop that is marketed in normal commercial channels, until after we have given you written consent to do so. If you fail to meet the requirements of this section, all such production will be considered undamaged and included as production to count.

  It is important to stay in contact with your adjuster during a claim.

  A lot of things can happen to your vines that could cause them not to produce a full crop.  The insurance period is long and it is important to report everything that may reduce your crop.

  When you sign up for crop insurance, coverage for grapes starts on February 1 in Arizona and California.  It begins on November 21 in all other states.  The end of insurance unless it is otherwise specified by the USDA RMA, is October 10th in Mississippi and Texas, November 10 in Arizona, California, Idaho, Oregon and Washington.  In all other states the end of insurance is November 20th.  Crop insurance is continuously in force, once signed up for, unless cancelled or terminated.  Your coverage for following years, will be the day after the end of the insurance period for the prior year.

Here are the Causes of Loss per the Grape crop provisions:

(1)   Adverse weather conditions;

(2)   Fire, unless weeds and other forms of undergrowth have not been controlled or pruning

       debris has not been removed from the vineyard;

(3)   Insects, except as excluded in 10(b)(1), but not damage due to insufficient or improper

       application of pest control measures;

(4)   Plant disease, but not damage due to insufficient or improper application of disease control

       measures;

(5)   Wildlife;

(6)   Earthquake;

(7)   Volcanic eruption; or

(8)   Failure of irrigation water supply, if caused by an insured peril that occurs during the

       insurance period.

  Adverse weather conditions could be anything that could cause damage to your grapes. For

example; drought, frost, freeze, excess moisture etc. Wildlife could be bird damage, deer etc.

Fire would also include smoke taint as that is a result of a fire.

  Crop insurance does not cover, the inability to sell your grapes because of a buyer’s refusal or contract breakage. It also doesn’t cover losses from boycotts or pandemics. Phylloxera is not covered, regardless of the cause. Overspray or chemical damage from a neighboring farm is not covered either.

  So, get those claims opened up early and stay in contact with your agent and adjuster.

What is Grape Crop Insurance & How Does it Work  

Cyndi
harvest knocked down by fence

By: Trevor Troyer – Vice President at Agricultural Risk Management, LLC

Grape crop insurance is a federally subsidized program that is administered by the USDA Risk Management Agency.  Policies are sold by independent agents and agencies throughout the country.  There are thirteen approved insurance providers (insurance companies) that work with the USDA RMA. 

  Grape crop insurance is an Actual Production History (APH) policy.  This means that it uses a vineyard’s historical production to determine how much is covered.  You are covering an average of your tons per acre per variety.  Since crop insurance is partially subsidized, the insurable varieties, prices per ton, premiums are all set by the USDA.  This also means that there is no cost difference from one insurance company to the next.  If anyone represents that they can get you a lower premium for the same coverage, it is false.  It is true that some agents and agencies are more knowledgeable with grape crop insurance. How your policy is set up and with what endorsements you have does make a difference.

  Per the Grape Crop Provisions grape crop insurance covers you for the following:

10. Causes of Loss.

(a) In accordance with the provisions of section 12 of the Basic Provisions, insurance is provided only against the following causes of loss that occur during the insurance period:

      (1) Adverse weather conditions;

      (2) Fire, unless weeds and other forms of undergrowth have not been controlled or pruning debris has not been removed from the vineyard;

      (3) Insects, except as excluded in 10(b)(1), but not damage due to insufficient or improper application of pest control measures;

      (4) Plant disease, but not damage due to insufficient or improper application of disease control measures;

      (5) Wildlife;

      (6) Earthquake;

      (7) Volcanic eruption; or

      (8) Failure of irrigation water supply, if caused by an insured peril that occurs during the insurance period.

(b) In addition to the causes of loss excluded in section 12 (Causes of Loss) of the Basic Provisions, we will not insure against damage or loss of production due to:

      (1) Phylloxera, regardless of cause; or

      (2) Inability to market the grapes for any reason other than actual physical damage from an insurable cause specified in this section. For example, we will not pay you an indemnity if you are unable to market due to quarantine, boycott, or refusal of any person to accept production.

  An agent will work with you to set up individual databases for each of your varieties.  If you have vineyards in different locations, it can sometimes be beneficial to set them up separately.  This can be good when you have a claim.  You might have a loss in one location but not in another.  You don’t want your production from different locations co-mingled, as you might not have enough of a loss to trigger a claim payment.

  The databases can go back 10 years, if your vineyard has been in production that long.  Minimally 4 years is needed to set up an APH policy’s database.  If the vines have just become insurable a Transitional Yield (T-Yield), based on the county and variety, can be used to fill in up to three years.  If you have purchased a vineyard that has been in production, you can transfer the production history.  You must have records or some way to prove the vineyard’s history though.  The database can only be set up as far back as you have production records to prove your tonnage.  Production records are not required at the time you sign up for crop insurance or at production or acreage reporting times.  But they may be required at the time of a claim.  It sometimes comes up that an insurance company may need to do a review and production records are needed.  So, it is good thing to keep them on hand.

  Here’s what the 2024 Crop Insurance Handbook (CIH) from the USDA says grape about production records:

1950 Grapes

A. Supporting Records

Settlement sheets, sales receipts, machine harvest records, certified scale records, pick records and final or year-end statements from a winery, cannery or processor must indicate net paid tons of Grapes delivered by variety. Converting gallons of wine to tons of grapes does not qualify as acceptable records.

  The CIH then goes into more detail about records and what needs to be on them.  Your agent can provide you this information as needed.

  What about insurability of the grapes?  Vines need to be in their 4th growing season for the grapes to be insurable.  A minimum of 4 years is needed to do the average, if the grapes have just become insurable then a T-Yield, as mentioned earlier, is used in place of any missing years.  Usually, the third growing season after being grafted is considered insurable.  The vines must have produced an average of at least 2 tons per acre, in at least one of the preceding three crop years.  There can be exceptions to this rule, though.  Sometimes there are other requirements located in the Special Provisions for a certain county.  In California the USDA Davis Regional Office puts out Informational Memorandums that lay out specific requirements for the State of California.  These differ from other growing regions in the United States.

  Grape crop insurance is available in the following states; Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia and Washington.  Grape crop insurance is not available in every county.  For a list of insurable counties, you can look at the RMA’s website at rma.usda.gov or contact your agent. 

 Insurable grape varieties are also different between states and counties.  The varieties are usually set by what has been being grown in that county or the climate of a particular state or county.  Even though there are differences between AVAs in a certain state/county, the insurability, prices, and premiums are all set by county not AVA.  Most of the time if a particular variety is not listed for a county it can be insured.  There are Types/Practices in the actuarial documents for each county that list out specific varieties and also make allowances for others. For example you might look up Hood River County in Washington State.  It lists; Cabernet Sauvignon, Chenin Blanc, Gewurztraminer, Grenache, Cabernet Franc and so on.  There is also listed “Other White Varieties” and “Other Red/Pink Varieties”, so if you have a grape variety that is not listed under it’s own name you can insure them under one of these categories.

  You can not cover 100% of your average production per variety.  You can choose coverage levels from 50% to 85% of your average.  Because of this, there is a sort of built in production deductible.  Coverage levels are in 5% increments.  The coverage level is relative to the premium, the lower the coverage level the lower the premium will be.  Obviously with higher coverage levels claims are more likely to be paid out; therefore the premium will be higher. What the correct coverage level for your needs is something your crop insurance agent can help you with.  Risks are different between states and counties. 

  Grape crop insurance is a valuable tool to mitigate risk for a vineyard. 

For More information please contact

Agricultural Risk Management, LLC

Toll Free: (888) 319-1627

Email: ttroyer@agriskmgmt.com

Or visit our website.

www.agriskmgmt.com

New Grapevine Crop Insurance Coverage Now Available

Cyndi
stormy dark skies over a vineyard

By: Trevor Troyer – Vice President at Agricultural Risk Management, LLC

The USDA Risk Management Agency has just released the new Grapevine crop insurance plan.  This has been something that vineyard owners across the US have wanted for years.  Coverage is now available starting for the 2024 crop year. The sign-up deadline is November 1st in all states where it is available.

  The states where you can obtain this new coverage are: California, Idaho, Michigan, New York, Ohio, Oregon, Pennsylvania, Texas and Washington.  It is not available in all counties though.  The counties that are listed in the actuarial documents are not the same as the Grape crop insurance program.  This new program is available for grafted grapevines only in 91 counties.

  What is covered with this new insurance product?  The Causes of Loss that are listed in the Grapevine Crop Provisions are below:

      11. Causes of Loss

      (a) In accordance with the provisions of section 12 of the Basic Provisions, insurance is provided only against the following causes of loss that occur within the insurance period:

(1) Freeze;

(2) Hail;

(3) Flood;

(4) Fire, unless weeds and other forms of undergrowth have not been controlled or pruning debris has not been removed from the vineyard;

(5) Insects, diseases, and other pathogens if allowed in the Special Provisions; and

(6) Failure of the irrigation water supply if caused by an unavoidable, naturally occurring event that occurs during the insurance period.

      (b) In addition to the causes of loss excluded in section 12 of the Basic Provisions, we will not insure against damage other than actual damage to the vine from an insurable cause specified in this section

  The vine needs to be completely destroyed, or is damaged to the extent that it will not recover in the 12-month insurance period from November 30th.

  Any damage other than damage to the grapevine from an insured cause is not covered.  For example, chemical drift, terrorism etc. are not covered.  Failure to follow good farming practices or the breakdown of irrigation equipment are also not covered.

  For the grapevines to be insurable they must be adapted to the area they are being grown in.  They must be being grown and sold for fruit, wine or juice for human consumption.  The vines must be grafted to be insurable as well.  The Crop Year begins December 1 and extends through to November 30 of the following year. You must have a minimum of 600 vines per acre to be insurable also.

  Vines are classified into 3 stages of growth for the policy.  Here are the exact definitions:

      (a) Stage I, from when the vines are set out through 12 months after set out;

      (b) Stage II, vines that are 13 through 48 months old after set out; and

      (c) Stage III, vines that are more than 48 months old after set out.

  Values are determined by the Stage (age) of the vine and the county they are located in.  Obviously Stage III vines are worth more than Stage I vines.  These prices are set by the USDA Risk Management Agency.

  Vines are insured in four different categories; Group A, Group B, Group C and Group D.  Without listing all the varieties in each group, which would take up a lot of space, suffice to say that any variety can be insured.  Group A for example has Concord, Niagra and other natives and some hybrids.  Group B has mostly hybrids such as Chardonnel, Diamond, Elvira, Vidal Blanc but does have some Vitis vinifera like Reisling.  Group C has the most European grapes, Cabernet Sauvignon, Chardonnay, Gamay and others but does have hybrids as well.  The catch all is Group D which has “All Other Varieties”.  You can select a different coverage level for each Group.  You could have 60% coverage on your Group A and 75% coverage on your Group C vines. Depending on which vines you think are more at risk.   If you choose Catastrophic Risk Protection (CAT) level for any vine type then CAT will be applicable for all of your insured vines in that county.

  You can choose coverage levels for your Grapevine insurance from CAT (Catastrophic) to 75%.  CAT insurance is 50% coverage but you only get 55% of that 50% value per vine. Coverage increments are 5%, so you have 50%, 55%, 60%, 65%, 70% and 75%.   There is a sort of a double deductible with Grapevine insurance.  You have a damage deductible and a value/price deductible.  For example, if you choose 75% coverage you would have a 25% damage deductible.  That means that the first 25% of damage is not payable.  So, if you had 30% of your vines killed because of a freeze you would have a payable claim of 5% (30% minus 25% deductible).  There is also a value deductible as well. Again, if you have 75% coverage you would have a grapevine value deductible of 25%. For example, if the grapevine is Stage III in California in Napa County it would be worth $39.  At the 75% coverage level the dollar amount for that vine would be $29.25.

  There is an optional endorsement that changes the damage deductible.  This endorsement does cost a little more but is worth it, in my opinion.  This is called the Occurrence Loss Option or OLO for short.  It changes the damage deductible to a 5% damage trigger.  If your loss is 5% or more of the total value of the vines in a unit you would have a payable loss.  Plus, you are paid on the full value percentage of the loss.  So, if you had a 30% loss, you would get paid on the full 30%.  This does not change the value percentage of the coverage level, if you choose 50% you get that amount.  You cannot exceed the total insured value, Liability, of the vines in any case. 

  OLO has been available for other types of insurance like citrus trees, avocado trees etc.  To keep premiums down growers often elect lower coverage levels with OLO.  That way you are likely to get a claim paid but the premium is not too high, you just get a little less per vine.

  Once you sign up and complete all the forms with your agent, they are then submitted to the underwriter.  The underwriter will open an inspection and an adjuster will come and take a look at your vineyard.  The adjuster will determine if the grapevines in your vineyard are insurable.  The vines could be uninsurable for any of the following reasons.  The vines are unsound, diseased or in someway unhealthy.  They could have been grafted within a 12-month period before the beginning of the insurance period. Or they could have been damaged prior to the beginning of the insurance period.  Once the adjuster has completed the inspection, it is sent to the underwriter and then on to the USDA Risk Management Agency for final approval. 

  If you have damage from an insured Cause of Loss, you should contact your agent to get a claim opened.  It is always best to get a claim opened up sooner rather than later.  48 – 72 hours after discovering damage is best.  I know that a lot of growers want to wait and see how much damage there is before they do anything.  It is always better to get a claim opened up rather than wait and see.  If there is not enough damage then you just let the adjuster know.  After you open up a claim an adjuster should be out within 10 days to inspect the vineyard.  Do not remove any damaged vines until it has been inspected!

  This is a good program, and it will provide protection to vineyards that need to mitigate losses from Freeze, Hail, Flood, Fire etc.  But you will have to determine, with your agent, whether or not it is a good fit for your vineyard.  Some growers and locations have less risk than others.  While some areas are constantly pummeled by the elements and other factors.

Uncorking Accessibility

Cyndi

Ensuring Your Website Complies with the ADA

PICTURE OF KEYBOARD SHOWING ADA ICONS IN BLUE

 By: Vanessa Ing, Farella Braun + Martel

In today’s digital age, having an online presence is crucial for businesses, including wineries, breweries, and other beverage companies. Accordingly, it’s essential to ensure that your beverage website meets federal standards for accessibility to avoid lawsuits and fines. In this article, we will help beverage companies understand how to comply with federal law and implement accessible features on their websites.

Why is Web Accessibility Important?

  In 1990, Congress enacted the Americans with Disabilities Act (ADA). It prohibits businesses open to the public (otherwise known as “public accommodations”) from discriminating against people with disabilities in everyday activities. These everyday activities can include purchasing goods and services, or offering employment opportunities. 

  In March 2022, the U.S. Department of Justice issued web accessibility guidance, reiterating that ensuring web accessibility for people with disabilities is a priority for the Department. Relying on the ADA’s prohibition against discrimination and its mandate to provide equal access, Department of Justice emphasized that the ADA’s requirements apply to all the goods, services, privileges, or activities offered by public accommodations, including those offered on the web. The Department of Justice’s guidance was particularly timely given that many services moved online during the pandemic. 

  In its guidance, the Department of Justice explained that people with disabilities navigate the web in different ways: for example, those with visual impairments might require a screen reader that reads aloud text to the audience.  Those with auditory impairments might require closed-captioning software, while those with impaired motor skills might require voice recognition software.  A website, therefore, should be compatible with the full range of such software. 

Is Your Beverage Company a “Public Accommodation” Business?

  Public accommodations include businesses that sell goods and services, establishments serving food and drink, and places of recreation or public gathering.  Companies that sell drinks, wineries that offer a tasting room, or breweries that host events are all considered public accommodations.  Thus, those businesses’ websites must comply with the ADA by being accessible to people with disabilities. 

  It is an open question whether beverage companies without a physical location open to the public must still have ADA-compliant websites. Some jurisdictions, like the Ninth Circuit (which has jurisdiction over Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington), have tied the necessity of ADA-compliant websites to the existence of a brick-and-mortar location (Robles v. Domino’s Pizza, LLC). However, the Department of Justice, along with several federal circuit courts of appeals, has taken the position that even a public accommodation business without a physical location must have an ADA-compliant website. 

  Given the increased prevalence of online-only services open to the public, it is very likely that litigation over the next few years may resolve this open question.  In the meantime, it is wise for beverage companies to take preventative caution and ensure that their websites are accessible. 

What are some Website Accessibility Barriers?

  To ensure ADA compliance, beverage companies must be aware of common website accessibility barriers.  These include poor color contrast, lack of descriptive text on images and videos, mouse-only navigation, and more.  By addressing these barriers, beverage companies can enhance the user experience for people with disabilities.

  Six examples of website accessibility barriers highlighted in the DOJ’s accessibility guidance include:

Poor Color Contrast: Ensure sufficient color contrast between text and background to aid individuals with visual impairments or color blindness. Use color combinations that are easy to distinguish.

Use of Color Alone to Give Information:  Avoid using color alone to provide information.  Using color alone can be very disorienting for someone who is visually impaired or colorblind.  Someone who is colorblind might not be able to distinguish between shades of gray.  One solution might be to ensure that symbols conveying information are differently shaped.    

Lack of Descriptive Alternative Text for Images and Videos: Provide descriptive text (alt text) for images and videos, allowing screen readers to convey the information to visually impaired users. This makes your content more accessible and inclusive.

No Closed Captions on Videos: Include closed captions for videos to accommodate individuals with hearing impairments. Utilize manual or automatic captioning options and review the captions for accuracy.  Free options are available on the web.

Inaccessible Online Forms: Make online forms user-friendly for people with disabilities. Provide clear instructions before the form, ensure that a screen reader could recognize required fields and fields with special formatting, ensure keyboard-only navigation, use accessible labels for inputs, and display clear error messages.  Note that an image-based CAPTCHA is not a fully accessible way to secure your form; your CAPTCHA should offer users who are visually impaired an audio alternative.

Mouse-Only Navigation: Enable keyboard-only navigation on your website to assist individuals with motor skill impairments or those who cannot use a mouse or see a mouse pointer on the screen.  Make sure all interactive elements can be accessed using the tab, enter, spacebar, or arrow keys.  Use a “Skip to Main Content” link to ensure that users employing only a keyboard can easily navigate the website’s primary content. 

  To implement these features, beverage companies should discuss accessibility concerns upfront with the web developer.  Beverage companies should keep in mind that posting a phone number on a website to call for assistance, as commonly utilized by businesses, does not sufficiently provide equal access to the website and the services or goods provided.

Who can Sue Beverage Companies?

  Non-compliance with ADA standards can lead to potential lawsuits.  Although some courts have held that a nexus must exist between a private plaintiff’s disability and the web accessibility barrier claimed, a private plaintiff may easily surf the web for websites that are inaccessible.  A private plaintiff may then file a lawsuit in federal court without first notifying the business.  Further, liability under the ADA is strict, which means that the intent of the business to comply is immaterial.  Thus, it is prudent for beverage companies to proactively address accessibility issues to avoid potential legal troubles. 

  Private lawsuits under the ADA can result in injunctive relief (a court order to comply with the ADA) and attorney fees.  And in some states, like California, the state law version of the ADA may enable plaintiffs to demand monetary damages ($4,000 per violation of the ADA). 

  Government involvement, while less frequent, is possible in cases involving national retailers.  If the Department of Justice observes a pattern or practice of discrimination, the Department will attempt to negotiate a settlement, and may bring suit on behalf of the United States. At stake are fines of up to $75,000 for the first ADA violation, and up to $150,000 for each subsequent violation.

What are the Rules for Website Accessibility?

  Although the ADA itself does not spell out the rules for website accessibility, several sources provide detailed rules that can aid beverage companies in building accessible websites. 

  First, the ADA authorizes the Department of Justice to enforce the statute.  Accordingly, the Department develops and issues regulations explaining how businesses must comply.  Specifically, § 36.303 of the Electronic Code of Federal Regulations specifies that a public accommodation shall provide auxiliary aids and services when necessary to ensure effective communication with people with disabilities, and that a public accommodation should consult with people with disabilities whenever possible.  The Department also issues administrative guidance, such as its March 2022 guidance described above.  

  Second, Section 508 of the Rehabilitation Act of 1973, which requires federal agencies to make their electronic and information technology accessible to people with disabilities, provides detailed guidance concerning the display screen ratios, status indicators, audio signals, and other accessibility features. 

  Third, the Web Content Accessibility Guidelines 2.1 (WCAG 2.1), which were originally designed by a consortium of four universities, provide highly specific web accessibility guidelines grounded on the idea that information on the web must be perceivable, operable, understandable, and robust.  These guidelines are widely referenced in court cases and settlements with the Department of Justice, as the guidelines address numerous aspects of web accessibility and offer three different levels of conformance (A, AA, AAA). Beverage companies can consult the WCAG 2.1 guidelines (including a customizable quick reference guide, at https://www.w3.org/WAI/WCAG21/quickref/) to ensure their websites meet ADA compliance. 

Looking Ahead

  Web accessibility standards evolve over time, with updates being released periodically. Beverage companies should stay informed about changes and updates to ADA compliance regulations. For example, the WCAG 3.0 is scheduled for release in the latter half of 2023, further refining accessibility guidelines.

  In sum, by understanding and identifying web accessibility barriers, and implementing necessary accessibility features, beverage companies can enhance user experiences and minimize the risk of legal repercussions. Embracing web accessibility is not only legally required but economically prudent in the long run, as it enables beverage companies to cater to a broad and varied audience, and demonstrates a commitment to inclusivity in the digital realm.

  Vanessa Ing is a litigation associate with Farella Braun + Martel and can be reached at ving@fbm.com. Farella is a Northern California law firm representing corporate and private clients in sophisticated business and real estate transactions and complex commercial, civil and criminal litigation. The firm is headquartered in San Francisco with an office in the Napa Valley that is focused on the wine industry.

The Rise of Cultural Meh

Cyndi

How brands can speak to emotionally exhausted customer

a half filled wine glass next to a half filled wine bottle on a table in front of a person standing in front of a window not in focus

By Susan DeMatei, Founder of WineGlass Marketing

 I spend an embarrassing amount of time every January reading year-end recaps, trend reports, and “culture in review” pieces. It’s part professional habit, part curiosity, part doomscrolling with a notebook. But as I started flipping through 2025 retrospectives, something felt… off.

Not alarming. Not exciting. Just oddly muted.

  Nothing was shouting. Nothing felt particularly sharp. Even the topics that usually come with big opinions seemed softened, neutralized, turned down a few notches.

  So I pulled the thread and the more I looked, the more I began noticing the same quiet signals emerging in places that had no connection to each other: design trends, language, social behavior, media content, fashion, and even travel preferences. Different industries. Different audiences. Same emotional temperature…Meh.

  Which led me to a question I couldn’t shake:  Is this increasing indecisiveness a new form of rebellion? A sign of boredom? Or are we just culturally drained in a world that requires constant outcry, conviction, and commentary?

  Because what I kept seeing wasn’t outrage or disengagement; it was something more subtle—an actual preference for neutrality, comfort, and choices that don’t demand much emotionally. Not exactly apathy, but more like strategic restraint.

  Once you start looking for it, the pattern is hard to ignore.

Cloud Dancer:  Are We So Tired We Can’t Even Pick a Color? Pantone is a worldwide authority on color that offers a standardized language through its Pantone Matching System. Since 1999, it has chosen a Color of the Year to represent the link between global culture and design trends, impacting everything from fashion to interiors to branding.

color pallette of Pantone by Cloud Dancer

  The 2026 Color of the Year is 11-4201, Cloud Dancer. Which is to say: white.

That might not sound radical until you realize it’s the first time a white shade has ever been chosen in the history of the program. Pantone’s explanation is predictably soothing — Cloud Dancer is meant to evoke calm, clarity, and quiet reflection in a “noisy world.”

  My first reaction wasn’t calm. It was: White? Really?

Are we so overwhelmed — so cautious — that we can’t even commit to a color anymore? Is white a thoughtful response to cultural overload, or a polite way of opting out altogether? A blank canvas sounds appealing in theory, but it also lacks a point of view.

  As a creative, I love color. Color has always been about mood, identity, and expression. It’s how we signal taste, emotion, and even rebellion. I’m all for generous whitespace, but choosing white as a central cultural symbol feels less like a statement and more like a pass — or perhaps a refusal to engage in the discussion at all.

  But maybe that is the point. In a world where every choice feels loaded, even color can feel like taking a side. White doesn’t Offend. It doesn’t provoke. It doesn’t require explanation. It’s safe, neutral, and comfortable. visual equivalent of saying, let’s not make this harder than it needs to be.

  Whether Cloud Dancer suggests thoughtful restraint or cultural timidity probably depends on your mood. However, it’s difficult to ignore what it communicates: a shared desire to step back, soften the edges, and avoid bold declarations — even in something as low-stakes as color.

Dictionary.com’s Word of the Year Isn’t a Word

  If Pantone’s color choice feels like a cultural sigh, Dictionary.com’s Word of the Year for 2025 feels like a shrug.

  The winning entry? “6-7.”

It’s not a real word and has no official meaning. It’s just a pair of numbers that serve more as a tone indicator—meh, so-so, middling, lukewarm—rather than language. It spread quickly on TikTok and other social platforms because it perfectly expressed a kind of emotional neutrality that many younger people already felt and were expressing without passion.

  In fact, many people searched for “what does 6-7 mean?” which reveals everything you need to know about its emotional economy.

  Think about that for a moment. A “word” that hardly means anything becomes Word of the Year because people are using it to describe how they feel about… everything.

That’s ambivalence turned into language. Not clarity. Not ardor. Just a gentle meh.

That’s not laziness, It’s emotional insolvency.

TikTok Trends: The Beige Flag Phenomenon

  If cultural ambivalence had a mascot on social media, it might be the “beige flag.” A playful counterpart to the dreaded red flag, a beige flag refers to behaviors that aren’t bad— just not exciting either. Mildly underwhelming. Emotionally neutral. Perfectly fine.

  People aren’t mocking beige flags. They’re celebrating them. The beige flag indicates low emotional tension. It’s like lukewarm coffee with a splash of oat milk — comfortable, steady, and unlikely to cause conflict or require vulnerability.

an example of TikTok's beige flag

(TikTok: cassandrapalumboo)

  But there’s another way to read it. Is beige really neutral? Or is it a softer form of resistance?

  Endless agreeableness. No strong preferences. No genuine stance. These traits avoid conflict, but they also prevent connection. Beige flags can feel safe — but they can also be quietly passive-aggressive in their refusal to show they care loudly about anything at all. It’s passive disengagement. Saying whatever works and meaning I’m not invested enough to be bothered.

  What makes this interesting is that it’s not just about dating culture. It’s about how we’re learning to manage intensity. In a culture that values calm, likability, and low drama, beige becomes socially acceptable armor. Emotional neutrality isn’t just tolerated — it’s becoming a coping strategy. One that helps people stay present without revealing too much.

  Why We Keep Tuning into The Office

  Have you noticed how many channels now air years of the same TV shows back-to-back? Full start-to-finish rewinds. Not nostalgia nights — just entire eras on repeat.

  Streaming platforms are experiencing a strong comeback of older TV shows and classic content, with much of the viewing time spent rewatching familiar favorites or discovering them for the first time. According to NRG’s syndicated Future of Series research, nearly 60% of total TV viewing on streaming services is dedicated to older content — shows people already recognize.

a chart showing content that streamers are most typically in the mood for

  Despite countless new choices, viewers opt for what feels familiar. There are a few reasons for this. Familiar shows are easy. They lower anxiety. They require less mental effort. You know who will disappoint you. You know who will redeem themselves. You know what happens with Ross and Rachel — and that’s part of the appeal.

  Nostalgia plays a role, but this isn’t just a phenomenon limited to Gen X or Millennials. Gen Z also has a strong interest in “older” content — especially shows from the 2010s that already feel safe, familiar, and emotionally accessible.

  There’s also a practical reason: older series are complete, with multiple seasons. No waiting, no cliffhanger anxiety. They’re perfect for binge-watching, half-watching, or playing quietly in the background while life goes on.

  Psychologists highlight another aspect: familiar shows serve as emotional comfort food. They ease cognitive load, calm stress, and offer predictable emotional rhythms that new content can’t provide. You’re not watching to be surprised. You’re watching to feel in control.

  This isn’t about avoiding risk; it’s about managing it.

It’s easier to rewatch a favorite sitcom than to commit to a prestige drama that demands attention, interpretation, and emotional stamina. Comfort viewing isn’t laziness — it’s efficiency. Cultural self-care. Emotional cost-cutting.

So What Does All This Add Up To?

  What this truly highlights is that ambivalence isn’t unintentional — it’s adaptive.

  People aren’t disengaging because they don’t care. They’re disengaging because caring too much, too often, is draining. Whether it’s choosing white as a color, using “6-7” to describe how you feel, embracing beige flags, or looping the same TV shows on repeat, the impulse is the same: to minimize emotional risk while staying connected.

Ambivalence, in this context, isn’t indifference. It’s preservation.

  Once you view it as a coping mechanism instead of a flaw, the pattern stops seeming passive and begins to appear deliberate.

So What Does This Mean for Marketers?

  For years, the common wisdom — and I’ve promoted this too — was that transparency, bold positioning, and value-driven storytelling were the way to go. People connect with people, not products. They want brands with values that feel authentic.

  That part is still tru. What’s changed is how those values land.

  We’re no longer in a moment where louder is better. Today:

•     Too much intensity feels overwhelming

•     Too many choices breed skepticism

•     Forced conviction triggers suspicion

  Consumers aren’t asking brands to go silent. They’re asking them to be clear without drama, specific without agitation, human without theatrics. They don’t want to be convinced. They want to be understood.

  That means embracing clarity and consistency. Making life simpler, not more difficult. Not dull — confidently straightforward.

  Here’s what that can look like:

•     Saying “here’s what we do and why,” without a manifesto

•     Offering quality and transparency, without hyperbole

•     Respecting time and attention instead of demanding emotional labor

  In a culture where ambivalence signals strength — not failure — brands that embrace intentional simplicity may connect more deeply than those pursuing loud differentiation.

  Here’s the question this cultural moment forces us to ask:

•     Are we too indifferent to care passionately anymore?

•     Or have we just become more selective with our emotional investments?

  I lean toward the latter.

Maybe ambivalence isn’t retreat. Maybe it’s reallocation — of attention, energy, and engagement — toward what truly matters, in ways that don’t demand constant volume.

•    Pantone provided us with a blank canvas.

•    Dictionary.com responded with a shrug.

•    TikTok offered us neutral flags.

•    And our viewing habits brought us comfort.

  These aren’t signs of collapse. They’re signs of selective engagement.

And that’s worth paying attention to.

  Susan DeMatei founded WineGlass Marketing, the largest full-service, award-winning marketing firm focused on the wine industry. She is a certified Sommelier and Specialist in Wine, with degrees in Viticulture and Communications, an instructor at Napa Valley Community College, and is currently collaborating on two textbooks. Now in its 13th year, her agency offers domestic and international wineries assistance with all areas of strategy and execution. WineGlass Marketing is located in Napa, California, and can be reached at707-927-3334 or wineglassmarketing.com.

Wine & Hospitality

Cyndi

The last bastion of human connection in an AI-driven world

a man and a women sitting at a table next to a vineyard while a woman pours wine into their glasses

By Cory Krejcik, Founder of Thirsty Bandit

In a culture increasingly shaped by screens, algorithms, and artificial intelligence, wine and hospitality may represent one of the last places where people still gather, slow down, and remember what it feels like to be human together.

  We are living in the most technologically connected era in human history, and paradoxically, one of the most socially disconnected. Our interactions increasingly pass through screens. Meetings happen on video calls. Friendships live inside text threads. Entertainment streams on every device. Meals are ordered through apps, dropped at the door, and eaten in front of laptops. Even leisure time is optimized for efficiency.

  Convenience has never been greater. Yet loneliness continues to rise across nearly every demographic group, and public health experts now describe social isolation as one of the defining challenges of modern life. According to recent data from AARP and Cigna, roughly 40 percent of Americans over 45 report feeling lonely, while younger adults, particularly Gen Z, report some of the highest levels of loneliness of any generation, showing that social disconnection spans every age group.

  Against this backdrop, cafés, wine bars, pubs, restaurants, tasting rooms, and neighborhood gathering places take on renewed importance. They remain some of the last public spaces where people still encounter one another organically, where conversation unfolds without an algorithm shaping it, and where shared experiences happen in real time.

  For those of us in wine and hospitality, this moment feels both familiar and urgent. Because what we steward every day is not simply product or service. It’s critical human connection.

What AI Can (And Cannot) Replace

  Artificial intelligence is rapidly reshaping nearly every industry, including ours. It can generate tasting notes, forecast sales, streamline purchasing, personalize marketing, and recommend wines with startling accuracy. It can optimize menus, automate reservations, and predict guest behavior. However, it cannot read the subtle energy shift in a room celebrating good news. It cannot sense when a guest wants guidance versus quiet. It cannot recreate the comfort of being welcomed by someone who genuinely remembers your last visit or your favorite bottle.

  Hospitality thrives on qualities technology struggles to reproduce: the human touch that turns service into care, emotional intelligence that guides interactions naturally, and presence that allows guests to feel seen rather than processed. Technology can make us more efficient behind the scenes, but the reason people return again and again remains deeply human.

How Gathering Spaces Strengthen Community

  In early January this year, Dr. Mehmet Oz described alcohol as a “social lubricant that brings people together,” pointing to the ways shared social experiences can support emotional well-being when enjoyed responsibly.

  The remark sparked debate, but it underscored a long-standing truth: humans have always gathered around shared food and drink. Wine, in particular, encourages conversation and lingering. The 750ml bottle is a universally sharable format meant to be opened, poured, discussed, and passed around the table. Stories emerge. Conversations lengthen. Time slows.

  Furthermore, hospitality spaces have historically served as community living rooms. Local pubs, enotecas, and cafés have historically served as sacred places where neighbors meet, friendships deepen, business relationships form, and milestones are celebrated. They are where newcomers feel welcomed and regulars feel known. In an era increasingly marked by digital isolation, these physical gathering spaces reinforce the everyday social ties that hold communities together. They offer neutral ground where people from different walks of life can still share a table and, if only for a moment, feel part of something collective.

Emotional Connection as Competitive Advantage

  As technology commoditizes knowledge and routine service interactions, emotional connection becomes hospitality’s true competitive advantage. No app replicates the feeling of walking into a place where someone greets you by name. No algorithm recreates the comfort of a familiar table after a long week. In a future increasingly mediated by AI, these human advantages only grow more valuable. Hospitality’s power lies not just in feeding or serving people, but in creating spaces where people feel connected again.

  Industry leaders now carry responsibilities that extend beyond operations and profitability. We are not simply operators, beverage directors, sommeliers, or restaurateurs. We are culture carriers. Hiring practices, training philosophies, lighting, pacing, music, and room design all influence whether spaces encourage people to linger, converse, and belong, or simply move through as transactions. Every operational decision shapes the emotional temperature of a room.

  The question facing hospitality leaders is increasingly clear: are we building businesses optimized purely for efficiency, or spaces designed for connection? The future of wine and hospitality may depend on how we answer.

Action Items:

Reigniting Social Connection Over a Glass of Wine

  Here are practical steps wine and hospitality leaders can take to reinforce social connection in their spaces:

1. Redefine Success Metrics:  Shift from purely operational metrics (turn times, covers per hour) to connection-oriented ones.

•     Guest feedback on feeling welcomed and heard

•     Return visits for conversation, not just consumption

•     Word-of-mouth referrals rooted in experience

2. Train Teams for Emotional Intelligence: Invest in training programs that go beyond service technique.

• Active listening skills

• Reading room energy

• Recognizing moments for genuine human engagement

  Your team should be incentivized not just to serve, but to connect.

3. Curate Shared Experiences:  Design programs that encourage group exploration and story-sharing.

•     Guided tasting flights with shared narrative arcs (regions, themes, stories)

•     Winemaker dinners emphasizing conversation

•     Community-focused events that spotlight local producers

  These experiences make people feel part of something larger.

4. Create Intentional Spaces for Interaction:

  Spatial design matters.

•     Communal tables

•     Intimate seating nooks

•     Fireplaces or shared counters

•     Low-pressure tasting salons

  Make layouts that invite conversation, not isolation.

5. Champion Local Wine Culture:  Celebrate the stories of the people behind the bottles.

•     Bring in local winemakers for tastings

•     Host producer Q&As

•     Feature regional pairings that tie to community identity

  This reinforces that wine is of a place, not just in a place.

A Human-First Future

  AI will undoubtedly shape the future of hospitality, helping operators run smarter, leaner, and more efficiently behind the scenes. But what happens across the bar, at the table, and inside the room must remain unapologetically human.

  Wine and hospitality continue to remind people what it feels like to slow down, engage their senses, and connect without a screen between them. They offer places where strangers become regulars, neighbors become friends, and ordinary evenings become lasting memories. In a culture defined by speed and digital convenience, the simple act of sharing a glass of wine with others becomes quietly radical.

  The opportunity (and responsibility) for wine and hospitality leaders is to protect and amplify these experiences. To design spaces where people linger. To empower teams to engage authentically. To create environments where guests feel welcomed not as transactions, but as participants in something communal.

  In a digital-first world, wine-led hospitality remains proudly human-first. And as technology continues to reshape how we live and work, the places that help us reconnect with one another may become the most valuable spaces of all, not just commercially, but culturally and socially. The future of hospitality, at its best, is not simply about serving food and wine. It is about reminding people, again and again, how good it feels to be together.

  Corey Krejcik is the founder of Thirsty Bandit, providing strategic marketing, brand development, and revenue optimization for hospitality and wine brands. With over 20 years of executive leadership experience, he believes the best outcomes are found at the intersection of strategy, adaptability, and identity. Outside of work, he enjoys cooking, running, home renovation projects, and spending time with his wife and two teenage children in Malvern, PA.

Certificates of Label Approval for Wines

Cyndi

A few tips and label basics

wine bottle laying on top of legal agreements with a large approved stamped on the wine lable

By Brad Berkman & Louis J. Terminello of Greenspoon Marder LLP

Virtually every wine that it makes to the shelf of a US wine shop has had its label reviewed by the Alcohol and Tax and Trade Bureau (TTB) of the U.S. Government. After a review and compliance is found, a Certificate of Label Approval is issued, commonly known by its acronym, COLA (Wines below 7% a/b/v do not need label approval, but the labels must comply with FDA requirements).

  COLAs do not grant the holder any legal ownership rights but rather indicate that the wine meets all federal labeling regulations with the ultimate goals of ensuring that labels do not contain any misleading, deceptive or inaccurate statements, they properly identify product identity. and contain the ubiquitous “health warning” statement a/k/a the “GOVERNMENT WARNING.” Importantly, COLA’s travel under the permittee, not by brand. This means that each producer or importer must hold the COLA under its TTB permit, regardless of whether the product was previously issued a COLA.

Label Basics

  Labels must have certain required information under the law. This is referred to as “mandatory” information. All other information, absent a mandated exclusion, is generally referred to as voluntary information, which the producer may wish to include on its label.

Mandatory Information-Required Information:

The following must be placed on the label(s):

•     Brand name and class/type designation.

•     Alcohol content.

•     Net contents statement

•     Producer’s name and address.

•     Government health warnings.

•     Country of origin (for imports).

•     Sulfite declaration (for most wines).

•     Appellation of Origin

  An appellation of origin is not always needed on all wine labels, but it must be stated when the following is on the label:

•     A vintage date

•     A varietal designation.

•     A type designation of a varietal.

•     A semi-generic designation.

•     An “estate-bottled” claim.

  It should also be noted that each piece of information be placed on the appropriate label as required by the law. Some information is placed on the back label, while other information may be on the brand label.

wine bottle laying on its side clearly showing it's front label

Notes on Stating Varietal:

Only grape varietals approved by TTB can be used. The list of grape variety names and their synonyms, approved for use, can be found in subpart J in 27 CFR 4 (Code of Federal Regulations).

  Another important point worth noting is the 75% rule. If the varietal is stated on the label, with certain exceptions, 75 percent or more of the wine must be made from the named grape variety. Also, the entire 75 percent of the grape variety must have been grown in the labeled appellation of origin.

  Producers and importers may use multiple grape varietal names on the label. When this is the case, all the grapes used to make the wine must be on the label, and the percentage of the wine derived from each grape is shown on the label as well, with certain tolerances permitted (2%).

Nutritional Information-Is it Required?  For now, nutrient information may be placed on a wine label, but it is not mandatory. The reader should be aware that there are two TTB proposed rules open for public comment. One rule requires the disclosure of per-serving alcohol, calorie, and nutrient content information in an “Alcohol Facts” statement on all alcohol beverage labels. The other requires a labeling disclosure of all major food allergens used in the production of alcoholic beverages, such as milk, eggs, fish, crustaceans’ shellfish, tree nuts, wheat, peanuts, soybeans, and sesame, as well as ingredients that contain protein derived from the aforementioned foods.

  If nutrient information is voluntarily placed on the label (as well as advertising materials), specific requirements apply.  Only calories, fat, carbohydrates, and protein may be included, and according to a TTB webpage, they must be stated in the following manner:

•     Calories: A statement of the caloric content per serving must be expressed to the nearest calorie, except that amounts less than 5 calories may be stated as zero.

•     Fat: A statement of the number of grams of total fat in a serving must be expressed to the nearest 0.5 (1/2) gram increment below 5 grams and to the nearest gram increment above 5 grams. If the serving contains less than 0.5 grams, the content may be expressed as zero.

•     Carbohydrates: A statement of the number of grams of total carbohydrates in a serving must be expressed to the nearest tenth of a gram, except that if a serving contains less than 1 gram, the statement “Contains less than 1 gram” or “less than 1 gram” may be used as an alternative, or if the serving contains less than 0.5 gram, the content may be expressed as zero.

•     Protein: A statement of the number of grams of protein in a serving must be expressed to the nearest tenth of a gram, except that if a serving contains less than 1 gram, the statement “Contains less than 1 gram” or “less than 1 gram” may be used as an alternative, and if the serving contains less than 0.5 gram, the content may be expressed as zero.

  According to TTB ruling 2013-2, Serving Facts statement appearing on a label or an advertisement may be stated per container size if the container is equal to or less than a single serving size. Serving Facts statement may be presented in dual-column format, which provides information both per serving size and per container size. The per serving size requirement is- a single serving is 12 fl. oz. for malt beverages; 5 fl. oz. for wine; and 1.5 fl. oz. for distilled spirits.

The European

Approach-Mandatory Since 2023

  As a point of comparison, wines sold in the European Union, since 2023, must provide consumers with detailed nutritional and ingredient information.

  The stated goal is to offer consumers clear information regarding the wine they are consuming. Interestingly, the regulations allow for QR codes to be placed on wine labels that take the consumer to a website where all the nutritional values can be found. Alcohol content, allergens, and nutritional values must be placed on the label.

What is Subsidized Crop Insurance?

Cyndi

How does it work & are there differences between providers

six people around a table with a laptop and a booth called Vineyard Crop Insurance in a vineyard

By Trevor Troyer, Agricultural Risk Management

The Federal Crop Insurance Corporation (FCIC) was created in 1938. When coverage began, it was limited to major crops. It was essentially an experiment at that time, until the passage of the Federal Crop Insurance Act in 1980. The 1980 Act expanded the number of crops insured and the locations in the United States. In 1996 the USDA Risk Management Agency (RMA) was created.  The USDA RMA’s purpose was to administer the Federal Crop Insurance programs and other risk management related programs.

  Perennials are quite different from traditional row crops or other vegetable crops.  But a lot of the risks are very much the same.  Drought, freeze, wildlife damage, fire/smoke, and the list of perils goes on. From what we see the risks are more with perennials.  It doesn’t matter if it’s an apple orchard, avocado grove or vineyard, your investment is subject to the elements all year round. You don’t have time to wait till the weather gets better to plant your crop. Things may happen after you harvest that might affect the following year’s crop production. 

  Grape Crop Insurance goes back to 1998; the current policy was written in 2010. Crop insurance is a partnership with authorized Insurance companies and the FCIC. Crop insurance is partially subsidized through the USDA. Currently there are 13 Approved Insurance Providers (AIPs) authorized to administer crop insurance policies reporting to the USDA RMA. Prices and premiums are set by the USDA Risk Management Agency per crop, state, and county. There is no price/premium competition from one company to the next because of this. Independent insurance agencies sell for these 13 different insurance providers.

  Grape crop insurance is available in the following states: Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, and Washington. Starting in 2026 grape crop insurance is now available in Dona Ana County in New Mexico. 

Crop insurance is not available for grapes in all counties though. Insurable varieties are also different between states and counties. As mentioned before prices are different between states and counties as well. The USDA price for a ton of Cabernet Franc in Napa County California is different than a ton of Cabernet Franc in Seneca County New York.

map of states that have grape crop insurance and the sigh-up deadlines
Map of states that have grape crop insurance and the sigh-up deadlines

  Grapes are insured under an Actual Production History (APH) plan of insurance. An average of the vineyard’s production per variety is used. Grapes need to be in their 4th growing season to be insurable. A minimum of 4 years is needed to do the average, if the grapes have just become insurable then a Transitional Yield (based on the county and variety) is used in place of any missing years. A maximum of 10 years can be used to determine the average if the vineyard has been in production for that amount of time. Basically, you are insuring an average of your tons per acre per variety.

  With crop insurance you cannot cover 100% of your average production. You can choose coverage levels from 50% to 85%. There is a built-in production deductible. Coverage levels are in 5% increments. Coverage levels are relative to premium, the lower the coverage the lower the premium, the more coverage you buy the higher the premium. It comes back to how much risk you feel safe with. For example, if you have Cabernet Sauvignon and your average is 5 tons per acre. At the 75% coverage level you would be covered for 3.75 tons per acre. You would have a 25% deductible (1.25 tons per acre). To have a payable loss you would have to lose more than 25% of your average production in a year.

  Crop insurance is designed to help a grower have enough money to be able to produce a crop the following year.  I have had winery owners complain to me that it doesn’t cover the cost of how much their wine is worth.  While I can totally understand this, it is the growing costs that are being insured against loss. Crop insurance does not cover the production costs of making wine or juice etc.  What is being covered with grape crop insurance is the price per ton of a specific variety as if you were to sell it.   Only the Causes of Loss that are listed in the policy are being insured against.  You can have an insurable cause reduce the value of your grapes (reduced brix, smoke taint etc.)  and be paid a claim based on the set county price and the difference in the dollar amount received.

  Here are the Causes of Loss for Grapes from the National Fact Sheet from the USDA:

Causes of Loss

  You are protected against the following:

•    Adverse weather conditions, including natural perils such as hail, frost, freeze, wind, drought, and excess precipitation;

•    Earthquake;

•    Failure of the irrigation water supply, if caused by an insured peril during the insurance period;

•    Fire;

•    Insects and plant disease, except for insufficient or improper application of pest or disease control measures;

•    Wildlife; or

•    Volcanic eruption.

  Additionally, we will not insure against:

•     Phylloxera, regardless of cause; or

•     Inability to market the grapes for any reason other than actual physical damage for an insurable cause of loss.

  Crop insurance is partially subsidized through the USDA. Premiums are subsidized from 100% at Catastrophic Coverage (there is an administrative fee though) to 41% depending on coverage level chosen.  A lot of growers “buy-up” coverage from 65% to 80% and their premium subsidy is around 50% to 60%. The subsidy makes crop insurance an affordable risk mitigation tool. 

  Hopefully, you don’t have a lot of situations where you would have a loss.  But as a grower you need to assess your risks.  These must be taken into consideration for the growing region your vineyard is located in. Here are some other questions to ask yourself.  What are your break-even costs?  Do you know your cost of production with projected inflation? Have you evaluated the risk of a severe crop loss? What varieties are planted in your vineyard?  Some types of Vitis vinifera are more susceptible to weather issues than others. Are you able to repay current operating loans without crop insurance in the event of a loss?

  Our job as a crop insurance agent or crop insurance agency is not to convince you that you need crop insurance.  It is to help you make an educated decision, based on your risks, on whether you need crop insurance.  And then, if it is a good fit to mitigate your risks, to determine how much coverage is needed.  No one wants to have a loss, but they do unfortunately happen.

A Short Primer on Exporting

Cyndi

For those who desire to enter the export market

a wine bottle sitting on one of many boxes surrounded by shelves containing wine bottles

By Brad Berkman & Louis J. Terminello of Greenspoon Marder LLP

Given the rates of consumption of alcoholic beverages in the U.S., specifically, the volume declines across all commodities, it may be wise for suppliers to consider markets abroad to sell their wares. Wine exports from the U.S. make up only a small percentage of wine sales, but markets such as Canada, Europe, Japan and the UK are active importers of U.S. produced wine. As a note, the U.S. Department of Agriculture reports that there was $1.27 billion in export value shipped from the U.S., with the top three markets being Canada with $459 million in exports, followed by the European Union with $167 million and the UK with $165 million in export value.

  For those in the wine business who desire to enter the export market, this article examines some key topics regarding the export of alcoholic beverages, and in particular, wine, and essential elements required to remain in compliance with federal and state regulations.

  The reader should bear in mind that the general concern of both the federal and state governments is the protection of excise tax revenue generated from the production and domestic sale of alcohol. When beverage alcohol is exported outside the U.S. or outside the borders of any state, no excise tax is imposed by either level of government. Simply stated, no excise tax liability exists for the export of beverage alcohol. However, strict rules apply and sufficient documentary evidence is required to support exportation; the absence of which will require the exporter to pay the tax that lawfully is not due. The examining auditor needs to be satisfied that a sufficient showing of export has been substantiated; a demand for payment of tax will be imposed.

Export from the Bonded Premises

  For wine producers, federal regulations allow for the exportation of wine from a bonded wine premises for exportation under a variety of circumstances, including to a foreign country, for use as supplies on vessels (such as cruise ships) and aircrafts,  and  transfer and deposit into foreign trade zones and customs bonded warehouses for storage pending exportation. Wine may also be removed from the bonded premises for export to U.S. armed forces for use overseas.

Proof of Exportation

  As noted above, sufficient and acceptable documentation as proof of export is mandated. The Alcohol Tax and Trade Bureau (TTB), in an industry circular, indicates that acceptable proof of exportation includes all documents that substantiate the transaction as a removal for export. Generally speaking, acceptable proof includes:

•    Purchase orders

•    Inland bills of lading

•    Ocean bills of lading

•    Letters of Credit and proof of payment

  The reader should keep in mind that in almost every instance, wine exported beyond state(s) borders is not subject to state excise tax either. The above documentation will likely be sufficient proof of export for state auditors; however, regulations and requirements should be researched by each state.

  Staying with state issues, there may be additional permitting or registration requirements imposed on the party desiring to export wine. In Florida, where this writer resides, a mere export registration is required prior to engaging in export activities. As an additional note, Florida applies Tied-House principles to exporters in that exporters are precluded from holding a vendor’s license (see Florida Statute §561.22(1)). Again, thorough research is required at the state(s) level to ensure compliance prior to commencing export operations.

  Bonded wineries are not the only types of federally licensed manufacturers permitted to export. The same rights are granted to breweries and distilleries. In fact, U.S. importers and wholesalers/distributors are permitted to export as well.

2 ships shown floating in the sea

Wholesaler Export Withdrawal without Payment of Tax

  Wholesalers are permitted to export wine to foreign countries, for use on vessels, such as cruise ships, free trade zones and customs bonded warehouses, transfer to a manufacturing bonded warehouse and to U.S. armed forces overseas.

  Federal law requires that any party purchasing alcoholic beverages for resale domestically or in foreign commerce must hold a Wholesaler’s Basic Permit before beginning operations. Untax paid wine may be removed from the wholesalers’ licensed premises for the purposes stated above; however, an application must be made to TTB on a proscribed form entitled “Withdrawal of Spirits Specially Denatured Spirits or Wines for Exportation”. A TTB officer will review the form and circumstances surrounding the shipment for export and will issue an approval (or denial) prior to the untax paid wine being removed for export. TTB requires that every shipment prepared for export must complete the above process. Additionally, each container or case of wine must be marked with the word “Export,” though certain exceptions exist.

  In addition to the above, a bond must be secured before untax-paid wine may be removed for exportation. The export bond can either be a one-time or continuous bond in an amount sufficient to cover the excise tax which would normally be due.

Wholesalers Removing Tax-Paid Wine

  Tax-paid wines can be exported to all destinations stated above, but a Wholesaler’s Basic Permit issued by TTB is required (and as a reminder-check your states requirements). With tax paid wine, the exporter is permitted to obtain a refund on the tax paid product through a process called drawback. The wholesaler must file the appropriate forms with TTB, including one entitled “Drawback on Wines Exported” to be eligible for the refund. It should be noted that exports to foreign trade zones and vessels or aircraft require that different forms be submitted to TTB to be eligible for a refund. Also, drawback is permitted on exports of beer and distilled spirits.

Other Considerations

  Finally, exporters must consider the requirements of the country to which wines (or other alcoholic beverages) are being shipped to. A certificate of origin certifying the country of origin of the wine will likely be required, as well as other documents. The exporter should be aware of the duties and taxing structure of the receiving country, as well as becoming familiar with the general industry practices of the receiving county to ensure proper product pricing, sufficient exporter margins and general terms of payment. Finally, legal issues should be considered, including the issue of contracts and dispute resolution with the exporters in the country partner. If a long-term business relationship is considered, a sufficient contract memorializing key terms should be put in place between the parties.

  Export markets are a unique and promising opportunity for U.S. wine producers (and beer and spirits producers as well) and wholesalers. Understanding the rules of the road and ensuring both U.S. and foreign compliance issues and business practices are essential to creating a profitable and trouble-free trade environment.