Oregon Liquor & Cannabis Commission (OLCC) a accepted a $50,000 settlement — one of the largest alcohol fines in the agency’s history — from Copper Cane Winery for issues relating to labeling of Pinot Noir wine made with Oregon grapes.
The OLCC alleged that the winemaker imported wine into Oregon under Copper Cane’s Certificate of Approval (CERA) privileges, but misrepresented the source of the grapes. OLCC also alleged wine labels and marketing display materials improperly referenced specific American Viticultural Areas (AVAs) within the State of Oregon and stated that the grapes were from the Oregon Coast or the coastal area.
Consumers, growers and Oregon winemakers noticed the geographic inaccuracy, since Oregon’s grape growing regions do not touch the Pacific coast and are separated by the Oregon Pacific Coast mountain range.
In response, the OLCC opened an investigation to review the allegations against Copper Cane which revealed the winery likely produced inaccurate wine labels; the investigation also revealed issues with Copper Cane’s marketing and retail display materials.
Although Copper Cane opted to settle the charges, the winery didn’t admit to the allegations or accept responsibility for mislabeling their products. However, the winery agreed to pay the fine and abide by all wine labeling standards going forward.
“Alcohol regulators and the wine industry in the U.S. and across the world must continue to ensure that unique locations, where grapes are grown and wine is produced, are protected in the market so consumers can be confident they are purchasing a bottle of wine from where it actually came from,” said OLCC Executive Director Steve Marks. “In this case we used the agency’s limited regulatory tools to protect Oregon’s brand, in the same way we would respect the brands from other wine-growing regions.”
Labeling is a very important issue and impacts Oregon’s wine industry because the state is internationally recognized as a producer of premium wines. The result is that Oregon wines are highly sought after, and customers rely on the wine labels to provide them with accurate information about the product they are purchasing.
Simultaneous to the Copper Cane investigation, the OLCC began working with the growers, winemakers and the Oregon legislature to improve policies to more accurately label where Oregon wines originate. Meetings involving different wine industry stakeholders revealed the need to understand and acknowledge the distinctions in wine production, as grape growers and winemakers have different business models and operations.
Winemakers partnered with state and federal regulators 40 years ago to establish AVAs, which are specifically defined wine-growing regions across the country distinguished by their soil type, climate and elevation. Prior to the establishment of AVAs, wine appellations were designated by arbitrary county or state borders with no regard to distinct growing conditions. AVA designations enable winemakers to produce vintages with a distinct flavor profile associated with the particular AVA and label the wine as such.