Napa wineries win battle over bottle labels
By JERRY HIRSCH
Los Angeles Times
A long-running battle between the maker of the popular $1.99 Charles Shaw wine -- widely known as "Two Buck Chuck" -- and the nation's elite vintners over the use of ''Napa'' on labels came to an end Friday.
Bronco Wine Co. agreed to drop ''Napa'' and add ''Lodi'' to the label of a wine made with grapes grown outside the famous Napa Valley wine region.
The accord settled a lawsuit brought by the California Department of Alcoholic Beverage Control, at the behest of the Napa Valley Vintners trade group, to enforce a 6-year-old state law requiring that at least 75 percent of the grapes used to make a bottle of wine must be grown in the county that is on the label.
The Ceres company, best known for Two Buck Chuck, had fought the rule, arguing that its Napa Ridge, Napa Creek Winery and Rutherford Vintners wine brands were exempt. A 1986 federal law allows existing wine labels to keep their names even if they don't meet the grape content requirement.
Napa's vintners worked to get the more stringent state law passed to protect the integrity of the region's wines, which includes sub-appellations such as Rutherford, Carneros and Stag's Leap.
Maverick winemaker Fred Franzia, whose family owns Bronco, has lost numerous rounds in the California Supreme Court and other courts attempting to overturn the law.
''This has been a long legal battle, but the settlement implementing the California Supreme Court's decision levels the playing field for all California vintners,'' said Jerry Jolly, director of the state agency. ''It also helps consumers by setting strict labeling standards so that the public can have confidence in the wine that it is buying.''
In January, the U.S. Supreme Court declined to hear the case.
''We have accepted this and are moving on,'' Franzia said. ''It is a small part of the business and really fought the fight over principle but we didn't win.''
The three brands in question account for $17 million of Bronco's $500 million in sales. Franzia will change one of the labels to Harlow Ridge, named after the street in Napa where Bronco runs a large bottling plant. The label will note that the grapes are from Lodi.
Franzia said Bronco will use Napa grapes in the Rutherford Vintners and Napa Creek lines.
Bronco will have until Sept. 29 to sell existing inventory of wines with the contested labels.
In a separate agreement with Napa Valley Vintners, Bronco will limit its use of the brands outside of California to wines made with Napa County fruit.
''We applaud Bronco for its commitment to come into compliance with the law,'' said Linda Reiff, executive director of the vintner's group. ''The Bronco case is just one example, and we will remain vigilant to protect against future abuses in the other 49 states and abroad.''
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