Category: Legal

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.

How does the “One Big Beautiful Bill Act” affect your grape crop insurance?

Cyndi
acres of wine grape vineyards under a stormy sky

By Trevor Troyer, Agricultural Risk Management

I have been getting asked, “How does the One Big Beautiful Bill Act affect my crop insurance?”  Does it make any changes to grape crop insurance?  Will it lower my premium or increase my premium?

  Lawmakers passed the One Big Beautiful Bill Act (OBBBA) on July 4, 2025.  There were several changes made to the Federal Crop Insurance Act that affect growers, and the OBBBA made several improvements to crop insurance programs.  Crop Insurance is a valuable tool that is used to mitigate risk and is an essential safety net for many producers.  It also included updates and increased coverage options and, in some cases, higher premium support.  Below I have summarized some of these to help you understand how you may be impacted in the next year.

  One of the most significant changes that was made was expanding the benefits for Beginning Farmer or Rancher (BFR).  In the past if you qualified as a Beginning Farmer or Rancher you would receive an additional premium subsidy of 10 percentage points greater for the coverage level you had chosen.  In addition to the extra premium subsidy all administrative fees would be waived.  You would also receive an increased percentage of any transitional yields from 60% to 80%.  This means when you have a low yield that triggered the Yield Adjustment (YA) endorsement in your production database, you would be able to substitute a higher percentage.   BFR benefits in the past lasted for 5 years.  With the passing of the OBBBA these benefits are now expanded to 10 years.  In addition to the 10% premium subsidy rate a BFR will receive an additional 5% premium subsidy for the first two crop years. Then a 3% premium subsidy rate increase for the third year and an additional 1% for the fourth year.  These BFR changes will increase premium support and allow more growers to qualify for this benefit, and for a longer period.

  The One Big Beautiful Bill Act also amended Area Based Crop Insurance Coverage and Supplemental Coverage Option.  I won’t get into all of these because some are not applicable to grape crop insurance.  One that does interest a lot of vineyard owners is Fire Insurance Protection Smoke Index or the FIP-SI endorsement.  The premium subsidy for this has gone from 65% to 80%.  This may make it an interesting option for those in areas where fires can cause significant smoke taint damage.

  Here is what it says in the USDA Risk Management Agency’s Fire Insurance Protection – Smoke Index Fact Sheet – “The Fired Insurance Protection-Smoke Index (FIP-SI) Endorsement covers a portion of the deductible of the Grape Crop Provisions when the insured county experiences a minimum number of Smoke Events as determined by the Federal Crop Insurance Corporation (FCIC) in accordance with the Smoke Index Data Provisions (SIDP) and identified in the actuarial documents.” 

  This endorsement is based on your underlying policy’s guarantee. In other words, the prices per ton and the average tons used for the underlying policy and your coverage level.  You can never cover 100% of your average production with crop insurance.  You can only cover up to 95%, even though a policy may not have that high coverage. Grape crop insurance only goes to 85%, and this is done with optional endorsements etc.  FIP-SI covers the deductible portion up to 95%.  If you had 50% coverage on your grapes it would cover 45% of your deductible.  If you had 75% coverage the FIP-SI endorsement would cover 20%, etc.

  You sign up for Fire Insurance Protection – Smoke Index by January 31st.  This is the Sales Closing Date for Grape Crop Insurance in California.  The insurance period for FIP-SI begins on June 1st and ends on November 10th. You do not need to report your acres separately as it uses the underlying policies acres.

  Here is the Cause of Loss from the 26-FIP-SI Endorsement: 

Causes of Loss

(a) This Endorsement provides protection for Smoke Events that meet the County Loss Trigger when the minimum number of Smoke Events occur in the county as identified in the actuarial documents. Triggered counties will be determined after the end of the Insurance Period.

(b) Individual vineyard yields are not considered under this Endorsement. It is possible that your individual vineyard may experience reduced yield(s) and you do not receive an indemnity under this Endorsement.

(c) The notice provisions in section 14(b) of the Basic Provisions do not apply to this Endorsement.

(d) Once published, FCIC’s determination in section 8(a) is final and is a matter of general applicability, presumed to be accurate, and will not be changed.

chart showing 2025 subsidy and factors for coverage and 2026

  So, you may not have any Fire or Smoke damage to your vineyard or grapes but still receive a payment.  This is based on your County.  No adjuster is required for this. You are not required to file a Notice of Loss with your crop insurance agent.  Or you may have a loss and get a claim payment for your grape crop insurance and for FIP-SI as well.

  Another major change that comes out from the OBBBA, that will make difference to a grower’s premium, is an increased subsidy rate. 

  An increase in the subsidy portion of the premium will decrease the Producer Premium for that same level. It also opens the door for some to increase coverage as they will be receiving more support. A higher coverage level means that you have more of a chance of having a claim paid.

  With grape crop insurance you are covering an average of your historical production per variety.  Coverage levels go from 50% to 85%.  You have a built-in production deductible with your coverage.  If you choose 70% coverage you have a 30% deductible.  You would have to have a loss of over 30% to have a payable claim. So, if you had a loss of 40% of your average production you would get paid on the 10% past your deductible.   

  With an increased subsidy it might make sense for some to move up another 5% or more in coverage. 

  As an example, I ran a quote for 10 acres of Chardonnay in Sonoma County in California.  The set price per ton is $2401.  I used an average of 4 tons per acre for the quote.  So, at 70% your guarantee would be 2.8 tons per acre.  If you harvest under that you would have a payable claim.  The 2025 premium per acre was $119, for the 10 acres $1190.  For 2026 the premium per acre is $99.70 and then for 10 acres $997.   As you can see this does make a difference.  Whether or not you decide to move up in coverage, saving money while mitigating risk is always important.

  USDA Risk Management Agency Administrator Pat Swanson said. “We’ve moved quickly to put American farmers first, ensuring they have the protection they need when unavoidable natural disasters occur.  We encourage all producers to work with their crop insurance agent to understand how these historic changes will benefit their operations.”

What Is a Brand, really?

Cyndi

And why yours might need a little therapy

By: Susan DeMatei, Founder of WineGlass Marketing

The word “brand” is notoriously difficult to define in marketing. If we were talking about a ranch brand—the kind seared onto livestock to signify ownership—that’s easy to understand. But in marketing, a brand is not a physical thing. It’s a symbolic construct. It’s not the label on the bottle or the winery’s logo or even the product itself. Rather, it’s the entire perception a consumer holds in their mind about your company, your wine, your people, and everything you collectively represent.

  A brand is a conceptual identity that differentiates you from your competitors. It can be shaped by your name, your origin story, the design of your label, the personalities involved in your winery, your tasting room experience, your packaging, your email tone, your partnerships, or even how you respond to a customer complaint. All these elements come together to form the intangible yet powerful idea of your brand. It is, quite literally, everything that signals who you are and why someone should care.

The Brand Illusion & its Real-World Value

  So why do marketers spend so much time discussing something that isn’t technically real? Because the effects are very real. Trust in a brand drives buying behavior. According to a 2021 report by Salsify, 90 percent of consumers said they are willing to pay more for a product from a brand they trust. And in a study by Deloitte Digital and Twilio, 68 percent of surveyed consumers reported they had spent more with a trusted brand—on average, 25 percent more.

Graphs entitled most trusted brands in the united states in 2024

  This isn’t just theoretical. Every year, major consulting firms and publications like Forbes and Newsweek publish lists of the most trusted brands. These aren’t obscure B2B companies or trendy startups. They’re names like Coca-Cola, Kleenex, and Whirlpool—brands that have become synonymous with quality, consistency, and confidence. In categories like health, beauty, and especially food and beverage, trust is essential.

  Food and beverage, in fact, ranks as the most trusted industry in the U.S. According to Morning Consult’s 2022 study, 72 percent of adults expressed some level of trust in the sector. That number climbs to 84 percent among Baby Boomers and 82 percent among high-income consumers. For comparison, trust among Millennials is 67 percent, and among Gen Z, it’s just 62 percent. These generational and socioeconomic differences remind us that brand trust is not universal—it must be nurtured and earned within each target group.

graph titled most valuable brands worldwide in 2025

  The idea that a collection of products, messaging, and people can form something consumers trust enough to put into their bodies is no small feat. In wine, where the product is sensory and the market is crowded, that trust can decide between a sale and a pass.

  Make no mistake—this intangible identity has tangible value. Consider when Joe Wagner sold the Meiomi brand to Constellation Brands in 2015. Nothing tangible transpired: no winery, vineyards, or staff. What Constellation bought for $315 million was a name, a label, and a loyal following. They bought the brand. The value placed on these intangible assets of a brand is referred to as Brand Equity. That’s the power of branding.

People Buy Brands, Not Products

  Your brand includes your product, but it is not your product. This crucial distinction often gets blurred, especially in industries like wine, where so much attention is given to what’s in the bottle. The reality is that consumers rarely buy based on technical attributes alone. They buy based on what they feel the product represents. They buy based on brand.

  Consider Halls. Technically, it’s a British brand of mentholated cough drops, now owned by Mondelēz International. That’s the company. But that’s not why people grab a pack of Halls at the drugstore when they’re sick. And if we were to describe the product the way we often do in wine—focusing on precise formulation—we’d say something like: “This is a 5.8 milligram lozenge with lemon flavoring, containing 16.1 mg of menthol and 8.1 mg of eucalyptus globulus leaf essential oil.”

  Informative? Maybe.

Persuasive? Not even close.

  Halls doesn’t sell ingredients. It sells empowerment. The brand message is clear: we know you’re indispensable to your family, workplace, and life. A cold shouldn’t stop you, and Halls won’t let it. It promises to clear your symptoms so you can keep going. That’s the brand. And it’s working—Nielsen reports Halls’ sales grew more than 32% in 2023, a surge not driven by a change in formula, but by a clear and resonant brand promise.

  This is the essence of brand power. People don’t buy what a product is. They buy what it means. They buy it because of how it makes them feel, how it fits their life, and what it says about them. Brands create shorthand for decision-making, simplify the overwhelming, and reinforce identity. That’s true in cough drops, and it’s absolutely true in wine.

So… How Do You Protect (and Strengthen) Your Brand Right Now?

  Here are a few no-nonsense steps you can take this week to make sure your brand’s identity doesn’t slip into witness protection:

1.    Google Yourself (and Don’t Flinch):

      What comes up first? Your website? Yelp? A two-year-old event listing? Your digital first impression is your storefront — make sure it says what you want it to.

2.   Audit Your Touchpoints:

      Look at your website, social feeds, emails, tasting notes, signage, even your Wi-Fi password. Do they all sound like the same personality? If not, your brand’s having an identity crisis.

3.   Define What You Aren’t:

      Everyone wants to be “premium,” “authentic,” and “approachable.” Snooze. Get real about what makes you different — and what doesn’t fit your vibe. That’s where clarity (and memorability) live.

4.  Protect the Visuals:

      Your logo, colors, and photography are your visual handshake. Don’t let them be distorted, stretched, pixelated, or used on a mauve background because someone “thought it looked nice.” Create a style guide and guard it like a secret recipe.

5.   Train Your Team to Be Brand Ambassadors:

      Every person pouring, posting, or answering an email is your brand. Make sure they know how to represent it — and reward them when they do it well.

6.   Listen. Constantly:

      Brands aren’t built in boardrooms; they’re built in the wild. Track reviews, social comments, and customer emails. They’ll tell you what your brand actually means out there — not just what you hope it does.

The Bottom Line

  Your brand is the most valuable asset you own — even if it never shows up on a balance sheet. It’s perception, emotion, and memory all wrapped into one name. It’s what turns a tasting into loyalty, a label into a lifestyle, and a sale into advocacy.

So don’t just make great wine. Make a great impression — again, and again, and again.

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 at 707-927-3334 or wineglassmarketing.com

Practical Tips

Cyndi

How to Maintain Beverage Inventory Levels in Uncertain Times

man with clipboard counting bottles of wine

By Nick Fryer, Vice President of Marketing, Sheer Logistics

Managing beverage inventory has never been simple, but in today’s environment it’s harder than ever. Geopolitical tensions, climate-related disruptions, shifting consumer demand, and rising logistics costs have all made supply chain management a high-stakes balancing act for wine, spirits, and beverage brands.

  Take the March 2025 tariff scare, for example. When the U.S. threatened new duties on European goods, hundreds of Chianti orders were suddenly grounded in Tuscany. For importers, it was a stark reminder that sales performance alone doesn’t determine success. If products aren’t where they need to be, when they need to be, revenue is lost. Similarly, when President Trump announced a 25% tariff on Canadian whiskey, some Canadian provinces ordered the removal of American-made spirits from retail shelves, causing a 66% drop in sales between March and the end of April.

  So how can beverage producers minimize delays, manage risk, and keep shelves stocked without overcommitting inventory? Below, we’ll break down the most effective tools and strategies to build resilience—from smarter freight partnerships to just-in-time inventory systems that actually work.

How to Forecast Seasonal Spikes and Holiday Demand

  Many reports have appeared in the last year bemoaning customers who are drinking and spending less. Even as some note declines in wine sales, there are still plenty of spikes that businesses can take advantage of.

  Food and beverage consumption has major seasonal variations. So much so that entire studies have been done to determine the environmental and psychological factors at play. Most craft beverage operations don’t need in-depth academic research on the issue, though. What they need is clear and accurate predictive analytics.

  The best way to forecast seasonal spikes is through forecasting platforms. Usually powered by AI and advanced algorithms, this technology uses internal, historical sales data as well as external market, season, and weather trends to determine when certain products will be in demand. The value of this is that it not only improves sales approaches but it helps craft beverage operations avoid supply chain disruptions.

  Businesses can plan what to have in stock, where, and then bolster shipping operations accordingly. Forecasting demand makes it much easier to ensure that inventory and logistics are ready for demand spikes like holiday demand rather than overwhelmed by it. There’s a competitive advantage in this as well.  Businesses that can get ahead of seasonal trends the most from them.

Tips on Selecting Reliable Freight Partners for Your Craft Beverage Shipments

   As e-commerce customers demand increasingly quick and easy deliveries, that pressure invariably trickles back to the businesses targeting those customers. For that reason and many others, having a reliable freight partner is an invaluable part of any beverage manufacturing or distribution operation. Here’s what to look for:

Craft Beverage Experience:  Most wines, if not sold in cans or boxes, are sold in fragile glass bottles that need to be handled with care at every step. That’s why a logistics partner with some experience in this industry is so important.

Proper Compliance and Permits:  Transporting spirits across national and state borders comes with legal requirements that can cause lengthy delays if not complied with. This again is an area where experience helps, as it ensures that logistics teams have better knowledge of permit systems and are up to date on regulations.

Cold Chain Capabilities: The right freight partner needs to have cold chain capabilities that match the needs of your products to ensure end-to-end quality control. In-transit conditions should protect the integrity of your product, not degrade it.

References:  Track-records speak volumes. Hearing from others who have worked with a logistics team is a great way to get a sense of their reliability. It’s also worth checking public records on insurance claims histories, etc., for potential red flags.

Technology and Tracking: Many wineries and beverage makers are shipping their products for delivery over long distances. Freight partners that offer up-to-date technology and tracking can make these journeys far less stressful.

  Tracking ensures transparency and makes it easier to keep customers accurately informed on delivery times. It’s also important that tools like routing technology are in use to keep transit as efficient as possible.

Flexibility:  How would the team respond to a last minute delivery request due to demand spikes? What plans do they have in place to deal with delays? These questions can expose the flexibility and resilience of a freight partner and how well they can pivot in tight situations.

The Trick for Maintaining Product Integrity in Transit: Packaging and Temp Control

  Wine and many other craft beverages are adversely affected by temperature variations. That said, even when temp control has been maintained, damaged packaging can give the impression of a damaged product. Maintaining quality in transit is all about addressing both areas.

  IoT (Internet of Things)devices that track environmental factors can help keep wine packaging and its contents in perfect condition. The devices will automatically flag if temperature or humidity levels go out of range so that logistics teams can quickly intervene. This then prevents condensation from forming that could damage packaging. It also stops chemical reactions from occurring, such as accelerated fermentation, which could degrade product quality or even lead to bursting cans. This is a common problem with wine spritzers transported without proper temperature control.

  Packaging itself also impacts temperature control. In this instance, however, it’s not about whether wine is stored in a bottle or a can but how it’s packed in transit. Insulated boxes, for example, ensure that even if there’s a delay on the road, wine is still kept at a steady temperature.

How to Cut Inventory without Sacrificing Stock Availability

  Shipping delays are often discussed in terms of what goes wrong in transit. It’s the reason why GPS tracking and data-driven routing are so important. However, many delays actually begin in the warehouse with inventory issues.

  Overstocking can crowd storage areas and slow fulfillment, while understocking has its own issues. The last thing any craft beverage operator wants is demand coming in that their inventory levels can’t match. Here’s how to balance both:

Predictive Analytics:  This technology empowers businesses with insights that allow them to cut the inventory that’s unlikely to sell and instead only stock what’s needed. This makes deliveries much easier to manage as stock is easier to find. It also prevents stockouts and the costly shipping delays that come with them.

Inventory Tracking:  Another way to reduce inventory without threatening availability is through better tracking. Here again, IoT sensors can be useful. RFID tags are another tracking option. Either way, these devices can automatically track inventory levels in real time and, when paired with an IMS, help automate restocking to keep up with predicted demand. This prevents businesses from holding onto too much stock while still ensuring that they have enough to meet customer demand.

FINAL POUR:

Key Takeaways for Reliable Shipping & Inventory

  The trick to addressing shortages and delays in craft beverage operations comes down to inventory and shipping management. Here’s a quick overview of how businesses can make these areas more reliable:

•    Track inventory and use predictive analytics to forecast demand and prevent warehouses from being overloaded with stock or scrambling due to shortages. Data takes the guesswork out and puts the balance back.

•    Invest in great packaging and temperature control in order to protect the quality of your products throughout the logistics network.

•    Pick freight partners carefully based on their experience, use of technology, and the kind of flexibility they can offer.

  Nailing the above can help businesses prevent and handle delays. Most importantly, it builds systems that can thrive no matter the season or the directions this industry takes.

Author Bio:

  Nick Fryer is the Vice President Of Marketing, Sheer Logistics with over a decade of experience in the logistics industry, spanning marketing, public relations, sales enablement, M&A and more at 3PLs and 4PLs including AFN Logistics, GlobalTranz, and Sheer Logistics.

From the Sublime to the Ordinary

Cyndi

Art in a bottle and insurance considerations

photo showing rows and rows of barrels on racks in a winery

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

The wine-making experience is often sublime, requiring the best attributes of the artist. Sometimes, however, it is essential to call on the practical among us. In this instance, at least, I am referring to the insurance broker along with the versed attorney who can assist in advising on insurance policies that manage and limit the winemakers (“Suppliers”) risk (it’s worth noting that these recommendations are applicable to all producers of beverage alcohol as well as distributors). Of course, this article is written by an alcohol beverage attorney, so its main objective is to make this publication’s readers aware of recommended areas of coverage for production and distribution relationships and agreements, as well as in the context of the contract packaging relationship.

  In simple terms, business insurance is essential for managing risk and protecting a business against economic loss. Wine is obviously a consumable good, and risk exposure occurs from the production facility through the distribution chain and ultimately, to the consumers’ table. It is advisable that the producer ensure that it, and its partners down the distribution chain, have adequate insurance guarantees that are memorialized as obligations in the various agreements that the Supplier may enter.

General Contractual Provisions

  Insurance terms and their requirements can be confusing to those unfamiliar with them. As an exercise in clarification, below is a sample of insurance provisions that may appear in a Supplier/distributor agreement with terms that may be known to the reader, but little understood. First, read the following:

Supplier Insurance: Producer will maintain: (1) primary products liability coverage totaling at least $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate, on an occurrence and (2) commercial general liability insurance of not less than $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate. Producer will give Distributor at least 30 days’ advance written notice of cancellation, nonrenewal, or material change in the terms of the liability policy. All policies shall name Distributor as an additional insured party.

Distributor Insurance: Distributor shall maintain Commercial General Liability Insurance and Product Liability Insurance in such an amount as is commercially reasonable but not less than the coverage amounts stated in Paragraph above. Within ten days of the effective date of this Agreement, Distributor will provide to Brand Owner an original certificate of insurance evidencing such insurance and these terms and thereafter will provide Brand Owner with each certificate of renewal, within ten days of the effective date of renewal.

What Stands Out?  

  Obviously, the reader will notice that the insurance provisions are reciprocal and that both the Supplier and distributor have insurance obligations. Additionally, both parties are named as additionally insured on the other party’s insurance policy. The additionally insured party is not the policyholder but is added to the policy, and the policy’s protections are extended to the additionally insured, covering them for the risks of the policyholders’ activities. In our example, additional insurance provides the distributor with protection against a Supplier risk event, and the producer is protected against a risk event associated with the distributor. This begs the question, what are the party’s insurance policies covering in the above clauses?

For the Producer-Product Liability Coverage

  Wine producers and Suppliers should have product liability insurance coverage as identified in the contractual provision. This type of coverage covers consumers’ claims against the producer stemming from damage caused by the alcoholic beverage. Such damages may include those resulting from a manufacturing defect during the production process. Ideally, the product will always come off the bottling line fit for human consumption, but sometimes contaminants or other substances may be present and consumed by the end user, which causes injury. Product liability insurance will cover the economic consequences of such incidents. Those entities in the chain of distribution, such as wine distributors, should also consider obtaining product liability insurance to guard against economic loss resulting from the distribution of beverages that may be defective.

  Many insurance policies, including those covering consumables like wine and alcohol beverage, have policy payout limitations. Phrased another way, your insurance provider will only pay up to a maximum coverage amount per occurrence or in the aggregate. Per-occurrence limit is the amount the insurance company will pay for a single claim or incident. The aggregate is the total amount the insurer will pay for all claims covered by the policy for its term.

  It is wise for the Supplier and distributor to include these policy limitations in their agreement to ensure adequate coverage in the event of a claim. Further, it is important to consult with an insurance professional to be sure that the policy limitations provide adequate coverage and protection based on the policyholder’s economic exposure.

General Commercial Liability Insurance

  General commercial liability is also called for in the above reciprocal clauses. As an industry standard, General commercial liability insurance protects against economic loss from claims that the Supplier or distributor caused injury to another person or property. Common areas of coverage include bodily injury, medical expenses, or property damage caused by the wineries or distributors business operations. As an example, this type of coverage may cover damage caused by a distributor’s vehicle to a retailer’s property when delivering the Supplier’s product. As with product liability insurance, adequate amounts should be acquired per occurrence and in the aggregate based upon risk exposure. Again, speaking with an insurance professional is essential for determining sufficient coverage amounts based upon the economic risk exposure to the policyholder.

Additional Areas of Coverage for Consideration

  There are many types of risk coverage available to wineries and other alcohol beverage industry members. Other coverage areas to explore include:

•     Liquor liability insurance: Covers claims for incidents as a result of the consumption of alcohol and for actions brought by claimants under dram shop laws (dram shop laws concern a business’s liability for the service and over-consumption of alcohol by consumers on their premises). This is especially important for Suppliers that have tasting rooms on their premises.

•    Recall insurance: Covering economic loss for the recall of defective alcohol beverage products that made its way into the marketplace.

•    Crop Insurance (for wineries in particular): Protects against losses to the crops from damages due to weather and other factors.

•    Business interruption insurance: Covers losses resulting from an unplanned interruption or temporary stoppage in business due to unforeseen circumstances.

  Risk management and the policy types mentioned here, and the terms defined, are meant to introduce and bring clarity to an often thought of as mundane area of business operations. However, it is extremely important that stakeholders in the beverage alcohol industry, in whatever form they take, bring serious consideration to this matter. Inadequate insurance coverage amounts or the wrong policy coverage could lead to catastrophic consequences for those who labor so hard to create and distribute art in a bottle. The reader should take care to consult with well-versed insurance professionals and attorneys to ensure adequate risk management.

pretty very purple wine grapes

Sustainable and Organic Wines-Alternatives, Opportunities and Compliance

Cyndi

By: Louis J. Terminello and Brad Berkman, Greenspoon Marder LLP

It’s common knowledge that consumption of alcoholic beverages, in general, has been on the downslope. Wine sales in particular, as reported by SipSource, dropped by approximately 6% from 2023 to 2024. Gen Z is at the forefront of this trend and is choosing to consume alcoholic beverages that are perceived as being healthier alternatives to the usual fare. With that in mind, it might be useful to introduce a few wine-making certifications that are regarded as eco-conscious or “green” and carry the perception of being a healthier and sustainable alternative to traditional wine. In addition, this article will look at federal labeling requirements that must be considered when seeking TTB label approval for these wines, especially those carrying the reasonable consumer-alluring USDA Certified Organic seal.

Sustainable Practices

  Sustainable winemaking is arguably a broadly defined term that is applied to the winemaking process that minimizes or totally avoids the use of chemicals, especially pesticides. The practice of this sort of winemaking extends significantly beyond that limiting definition and can include other important impetuses such as environmental and social concerns.  Issues of responsible irrigation, water usage, energy consumption, and reducing the production of greenhouse gases can be included. For some certifications, safe and fair labor practices can fall within the rubric of sustainable practices and become an important part of the certification process.

  Communicating a winemaker’s efforts and commitment to sustainability is, at least on the wine label, conveyed by the affixing of the certifying organization’s seal, of which there are many.

  Regardless, the concept of sustainability and “green” practices go well beyond the mere affixing of a seal. The certifying organizations and those in the industry who follow their guidelines take the matter of sustainable practice very seriously. Moreover, a significant number of consumers consider sustainability when deciding on a wine purchase. The bottom line is sustainable practices, and their commensurately labeled wine may be good for the bottom line, as well as the environment.

  What follows are examples of a few sustainable certifying organizations, that, after meeting the organization’s requirements, are permitted to affix their seal to the label.

SIP Certified

  SIP Certified, based in Atascadero California, has been promoting sustainable winegrowing since 2008. SIP claims that the organization has certified 43,000 vineyard acres in California, Oregon, and Michigan, six wineries, and more than 63 million bottles of wine have been SIP Certified (as stated on their website). SIP is a membership organization whose members uphold values such as social responsibility, water management, safe pest management and energy efficiency among other values. According to the organization, it sets strict “non-negotiable requirements that measure environmental, social, and community impact of its members while assuring consumers that the product in their bottle was made with conscience and care.” There is a rigorous application and inspection process that if passed and adhered to, successful applicants may emblazon their products with the SIP seal.

For more informaion contact…

Whitney Brownie

Certification Coordinator

Email: whitney@vineyardteam.org

Phone: 805.466.2288

Beth Vukmanic

Executive Director

beth@sipcertified.org

Phone: 805.466.2288

Sustainability in Practice (SIP) Certified

5915 El Camino Real

Atascadero, CA 93422

The Demeter Association

  Demeter is another well-regarded sustainable practice association that focuses on certifying biodynamic wines. Sustainable and organic practices are part and parcel of biodynamics, but the concept of biodynamics goes beyond organic practices. Demeter and biodynamic producers take a “holistic approach to the wine-making process and treat the vineyard as a living organism.” Demeter adherents may incorporate such unique aspects as the lunar cycle in the growing and processing of grapes as well as certain soil preparations using unique ingredients not normally associated with traditional vineyard practices. Demeter is a worldwide organization and there are only a few wineries in the US that carry the seal.

For more information contact…

Demeter Association, Inc.

317 Church Street

Phoenixville, PA 19460

Phone: (541) 929-7148

Email: info@Demeter-USA.org

Certification Staff:

Evrett Lunquist – Director of Certification – Ext. 105 Office Hours 8-5 CST Mon-Friday

Sarah Rhynalds – Certification Manager – Ext. 209

FAQs: Wine Industry Intellectual Property Protection

Cyndi
ntellectual property word cloud on digital tablet with a cup of coffee

For wineries, managing intellectual property (IP) is crucial to maintaining brand identity and protecting creative investments. While general IP principles apply across many sectors, wineries face unique challenges and opportunities.

  We have spoken to several wine industry leaders and compiled their most frequently asked questions regarding IP protection. This article provides answers regarding core IP types and effective management strategies that wineries should adopt.

What is intellectual property and why is intellectual property protection important for the success of my wine industry business?

  Intellectual property refers to valuable non-tangible assets. Even though these assets are non-tangible, they can be protected. There are several types of intellectual property:

•    Trademarks identify source through the use of symbols, names, or designs and distinguish the company’s products from those of competitors. For wineries, trademarks may include the name of the vineyard, logo designs, and even unique label features or bottle shapes. Properly registering trademarks is critical to enforce exclusive rights and prevent misuse by others. A trademarked name or logo allows consumers to associate the product with a specific winery’s quality and reputation, building loyalty over time.  Trademark protection keeps others from using similar marks that would cause consumer confusion.

•    Copyrights cover creative works such as website content, photography, and advertising material. Any unique content produced for the winery—from label artwork to promotional videos—can be protected by copyright. This protection is automatic upon creation, but formal registration strengthens the winery’s legal standing, making it easier to defend against infringement. Copyright protects against creative expression being copied by others without permission.

•    Patents protect useful inventions and may apply to novel winemaking processes or technologies. Although less common in winemaking, patents could cover novel fermentation techniques or vineyard management technologies. Patents provide exclusivity, ensuring the winery can control the use of its innovative methods.

•    Trade Secrets include confidential information such as proprietary blends, aging processes, and customer data. For trade secrets to retain their protected status, wineries must take reasonable steps to keep this information confidential, such as using non-disclosure agreements (NDAs) and limiting access to sensitive information.

What are some steps I can take to protect my brand and trademarks?

  A winery’s brand is often its most valuable asset, making trademark management a priority. A lot of effort goes into making high-quality wines and curating tasting experiences that customers will remember. When a consumer is facing a wall of wine at the wine store or an extensive wine list at a restaurant, you want these consumers to remember your wine and not confuse you with a competitor that may be piggy-backing on the reputation you have taken the time, effort, and expense to build. Here are best practices for wineries to consider:

•    Choose Distinctive and Protectable Names: Wineries should select unique, memorable, and legally protectable names. Trademarks fall into categories ranging from “fanciful” (completely made-up words) to “generic.” The less the mark naturally conveys about the product, the more protectable it is. Names like “Yellowtail” for wine are highly protectable because they bear no direct relation to aspects or qualities of the product.

•    Consider Trade Dress: Trade dress is a form of trademark protection and covers the distinctive visual appearance of products or packaging, such as wine labels and bottle designs. To be protectable, the trade dress must be unique to the winery and have come to be recognized by consumers through regular use. Distinctive bottle shapes or label layouts can qualify for trade dress protection, provided they are original and have developed a reputation in the market.

•    Monitor and Enforce Rights: Trademark protection requires ongoing vigilance. Wineries should regularly check for unauthorized use of their trademarks or similar marks that could confuse consumers. Enforcing rights may involve issuing cease-and-desist letters or, in severe cases, taking legal action.

•    Geographical Indications (GI), including AVAs: American Viticultural Areas (AVAs) and other geographical indicators are specific to wine-producing regions. To label a wine as originating from a GI, the grapes must come from that area. Napa Valley, for example, is a protected AVA, and only wines produced within this region can use the name legally.  Wine companies must be careful to confirm they are using any geographical indications properly.

Do I need to register my trademarks?

No, but there are advantages. These include:

•    Constructive Nationwide Use: If a business does not register a trademark, then it can only enforce the trademark in the geographic areas in which it actively uses the trademark. Registering a trademark grants the owner nationwide rights regardless of whether it uses its trademark nationally, though actual enforcement must wait for use in the geographic area where the infringement is taking place.

•    Presumption of Validity of Rights: Because registering a trademark involves an application and vetting process, after a registration is granted, there is a presumption that the owner’s rights to the trademark is valid. Although this presumption can be rebutted in litigation, it makes things more difficult for the opposing party. It can also make cease and desist letters more persuasive because the trademark owner is able to provide concrete proof of its trademark. 

•    Use of the ® Symbol: Although a business can use the ™ symbol without registering its trademark, the use of the ® symbol is reserved for trademark owners who have registered their trademark. The use of this symbol indicates to potential infringers that you have a trademark registration and can be a potential deterrent.

Does my U.S. registration protect me throughout the world?

  No, trademarks must be registered in each country in which you want to protect the mark. But there are some shortcuts. As an example, one registration covers the whole European Union. In certain cases, it is also possible to use a registration in one country as the basis for protection in a different country. The rules are different depending on the circumstances and the country.

What are some steps I can take to protect copyrightable material?

  Marketing content for wineries often includes unique visual and written material that benefits from copyright protection. Having clarity about who owns the copyright to different materials and how other can use this material can have substantial benefits for wine industry businesses.  For example, it can be the difference between being able to use a label for decades and profit over the built goodwill associated with it or having to pay to have a different label designed for new products because the designer, not the company, owned the rights, and then having to start building goodwill almost from scratch. It can also help wineries capitalize on the social media content of consumers, which is often free and very persuasive to other consumers. Here are several ways to manage these assets effectively:

•    Get Copyright Assignments From Contractors: Many wineries hire freelancers to create content, including label designs and websites. Without a copyright assignment, freelancers retain ownership of the work they produce. To avoid complications, wineries should require a written assignment transferring copyright ownership to the winery.

•    Register Copyrighted Works: While copyright protection is automatic, formal registration of key assets like photos, website content, and promotional videos provides a clear legal advantage in case of infringement. Registration enables wineries to seek statutory damages and attorney fees if they need to enforce their rights.

•    Get Authorization for Use of User-Generated Content: Many wineries encourage social media sharing by customers. However, they should ensure they have permission to use these posts in marketing campaigns by including terms of use that give the winery a license to repurpose customer photos or comments.

What are some steps I can take to protect my trade secrets?

  Trade secrets cover any confidential business information that gives a winery a competitive edge. This can include market research, proprietary viticultural and vinification research and practices, profit and loss information, and customers lists, in addition to many other things. To safeguard these valuable assets, wineries should:

•   Implement NDAs and Confidentiality Agreements:  Employees, contractors, and business partners who access sensitive information should sign confidentiality agreements. These legal tools restrict information sharing and set expectations about handling proprietary knowledge, from recipes to customer lists.

•   Limit Access to Sensitive Information: Only essential personnel should access trade secrets. Implementing access controls, such as password-protected systems or secure filing cabinets, can help maintain confidentiality.

•   Educate Staff on Trade Secret Policies: Employees must understand the importance of confidentiality and the specific measures implemented to protect trade secrets. This can be accomplished through regular training sessions that reinforce these practices.

  The wine industry often revolves around physical assets: acres of vineyards, tons of grapes, wine processing space, cases of wine, storage space. But the intellectual property that informs the physical products and often increase their quality and profit margins is also incredibly valuable.  Investing and protecting these intellectual property assets is crucial to long-term success in today’s wine industry.

About the Authors

  Nate A. Garhart is special counsel and MaryJo Lopez-Oneal is an associate in Farella Braun + Martel’s San Francisco office.

Why U.S. Wine Labels Leave Consumers in the Dark

Cyndi
three black wine bottles with blank lables

By Greg Martellotto

As an Italian Wine Ambassador and a winemaker, I’ve had the privilege of immersing myself in the world of wine from both sides of the glass. While the complexities of terroir and the delicate art of winemaking have captivated me for years, a growing concern has emerged: the glaring lack of transparency in the U.S. wine industry. It’s a subject that not only perplexes but frustrates me as both a producer and consumer of wine.

While Americans have become increasingly conscious of the ingredients in their food and beverages, wine—a product enjoyed by millions across the country—remains shrouded in mystery. Unlike most other consumables, wine in the United States escapes the rigorous scrutiny of nutrition and ingredient labeling. This lack of transparency is not only puzzling but also problematic in an age where consumers demand to know what they’re putting into their bodies. With every other product, from packaged snacks to soft drinks, offering detailed breakdowns of ingredients and nutrition facts, the wine industry stands out as a notable exception. It’s time we ask: why is wine treated differently?

The Opaque Reality of U.S. Wine Labels

To truly understand the issue, we need to consider the labeling regulations—or lack thereof—that govern wine in the United States. Current U.S. regulations primarily focus on alcohol content, producer information, and origin, leaving out crucial details such as ingredients, additives, and nutritional information. This is in stark contrast to the global trend toward transparency, particularly in Europe, where wine labels often provide comprehensive nutritional and ingredient information.

The European Union, for example, has recently moved toward implementing mandatory ingredient and calorie labeling for wine. Consumers in the EU can expect to see labels indicating the use of preservatives, stabilizers, added sugars, and other additives. This trend is not just limited to wine but applies across the food and beverage sector, reflecting a broader consumer demand for transparency and informed choice.

In the U.S., however, wine labeling remains woefully outdated. Consumers are often unaware of the dozens of additives that could be present in their wine—ranging from sulfur dioxide, which is used as a preservative, to Mega Purple, a concentrated grape juice used to enhance color and sweetness. These additives are legal and commonly used in winemaking, yet most consumers have no idea they exist, let alone how they might affect their health.

Hidden Ingredients in Plain Sight

Wine is a natural product at its core: grapes are harvested, crushed, fermented, and aged to create the drink we love. But winemaking, especially at the industrial scale, can involve a variety of processes and additives that are far removed from the idyllic image of grapes ripening under the sun. Additives such as fining agents, preservatives, flavor enhancers, and colorants can all be used to achieve a desired taste, texture, or appearance. In some cases, additional sugar is added to adjust the sweetness of a wine, while acids might be used to alter its pH level.

One of the most glaring omissions on U.S. wine labels is the amount of sugar in the wine. While consumers are increasingly aware of sugar content in other beverages, many wines, including those marketed as “dry,” can contain significant amounts of residual and added sugars. These sugars can contribute to the flavor profile, but for consumers trying to watch their sugar intake, this lack of information can be problematic. When consumers think they are choosing a dry wine with little to no sugar, they may be unwittingly consuming sugar that has been added to balance flavors or boost sweetness.

This issue of hidden sugars is compounded by the lack of clarity about other additives. Many consumers would likely be surprised to learn that certain mass-produced wines contain additives like artificial coloring agents, flavor enhancers, and clarifying agents like egg whites or gelatin. Some of these additives can trigger allergies or intolerances, yet without ingredient labeling, consumers are left in the dark.

I had sent Napa Cabernet for independent testing, marketed as “dry,” contained 10g/L residual sugar–information the winery deemed proprietary. This raises transparency concerns, especially with “American wine” requiring just 75% U.S. grapes and Napa Cabernet needing only 75% Cabernet Sauvignon. Grocery stores and large producers exploit these loose regulations, leaving consumers in the dark about the contents of their bottles.

The Case for Transparency

Why does this lack of transparency persist in the U.S. wine industry? The answer is multi-faceted, involving a combination of industry resistance, historical precedent, and regulatory inertia. The wine industry has long argued that listing ingredients on labels would complicate the winemaking process and confuse consumers. There is also a concern that ingredient labeling could expose the use of additives, which might deter consumers who prefer a more natural product. However, these arguments overlook a growing trend: consumers want transparency and are capable of understanding it.

The U.S. Food and Drug Administration (FDA) requires nutritional labeling for almost all packaged food and drink products, yet wine remains under the jurisdiction of the Alcohol and Tobacco Tax and Trade Bureau (TTB), which has less stringent requirements. This bifurcation in regulatory oversight is a key reason why wine labeling standards have lagged behind other industries. While the TTB enforces rules related to alcohol content and certain health warnings, it does not mandate the same level of ingredient disclosure required for non-alcoholic beverages.

The European Union’s recent push for ingredient and calorie labeling offers a compelling case study. There, winemakers are embracing the move toward transparency, recognizing that it can build trust with consumers. Far from confusing the marketplace, these new labels are empowering consumers to make informed decisions based on their dietary needs and preferences. For producers who prioritize quality and sustainability, these labels offer an opportunity to differentiate their products in a crowded market.

Consumers are increasingly drawn to wines that are organic, biodynamic, or made with minimal intervention, and transparent labeling can help highlight these qualities.

The Benefits of Transparency

As a winemaker, I understand the importance of building trust with my customers. For me, transparency is not just a regulatory obligation; it’s a philosophy. When I craft my wines, I strive to use the highest quality grapes and minimal intervention. I believe consumers deserve to know exactly what goes into their bottle. This is why I’ve always been open about my practices, even without a legal requirement to do so.

Transparency in labeling could offer a range of benefits, both for consumers and the industry at large. For consumers, it would allow for informed decision-making. People with dietary restrictions, allergies, or simply a desire to consume fewer additives could choose wines that align with their preferences.

Nutritional information, particularly calorie counts and sugar content, would also help consumers make more informed choices about their alcohol consumption. In an age where consumers can instantly access information about virtually anything via their smartphones, the lack of detailed labeling on wine bottles feels increasingly out of step with the times. For the wine industry, transparency could foster innovation and differentiation. Winemakers who prioritize quality, sustainability, and minimal intervention would have the opportunity to showcase their products to a discerning consumer base. As consumers become more aware of the contents of their wine, they will naturally gravitate towards brands that align with their values. This could encourage more producers to adopt sustainable practices and reduce the use of unnecessary additives.

Moreover, transparency could help dispel some of the misconceptions about wine. For years, the wine industry has been hampered by conflicting studies about the health impacts of wine consumption. By providing clear, consistent information about what is in the bottle, the industry could contribute to a more nuanced understanding of wine’s role in a healthy diet. Consumers who are concerned about sugar, additives, or alcohol content would have the information they need to make choices that align with their health goals.

The Road Ahead

Implementing mandatory nutrition and ingredient labeling for wine in the U.S. will undoubtedly require adjustments from the industry. Producers will need to invest in new labeling systems and, in some cases, reformulate their wines to reduce the use of additives. However, the potential benefits far outweigh the challenges. By embracing transparency, the wine industry can build trust with consumers, foster innovation, and elevate the entire sector.

The time has come for the U.S. to catch up with the rest of the world. Mandatory nutrition and ingredient labeling for wine is not just a matter of consumer rights; it’s also an opportunity to elevate the industry. Let’s uncork transparency and usher in a new era of consumer trust in the U.S. wine industry.

Greg Martellotto is a winemaker, Italian Wine Ambassador, and the founder of Big Hammer Wines.