November 2010

On Reserve: On Vacation

by Lindsey A. Zahn on November 22, 2010

IMG 8753 1024x768 On Reserve: On Vacation

Throughout the last five months, On Reserve has thoroughly enjoyed providing its readers and visitors with information on contemporary legal issues in the wine industry. We have taken great pride in producing the most thorough and up-to-date entries composed of legal insight and historical interception. As we enter this holiday season, however, we find it necessary to take a break—or short vacation, if you will—as we continue our legal journey as well as explore new, international wine territories.

In the interim, we highly welcome (and value) any commentary, suggestions, questions, business ventures, or input you may wish to provide with respect to forthcoming entries and updates On Reserve may publish. Please contact us at lazahn@winelawonreserve.com. In the future, you can look forward to upcoming entries discussing new legal issues and even third-party academic publications featuring the lead author of On Reserve. Please continue to visit On Reserve and use it as a resource to broaden your knowledge on wine and law, as well as recommend us to your friends and colleagues.

We wish you the very best as we enter the upcoming holiday season and we look forward to our return with great splendor.

{ 0 comments }

Canada: Outdated Direct Shipment Laws

by Lindsey A. Zahn on November 18, 2010

This is a great video discussing the Canadian wine laws with respect to direct shipment to customers. It is especially interesting to watch in light of H.R. 5034, or the CARE Act, as it seems that Canadian wineries struggle with similar direct shipment problems (although, from a viewing of this video, one might contend that Canada’s direct shipment restrictions are even stricter than those of the United States).

Video: Confined Wine.

{ 1 comment }

76406 10150096124397952 386341557951 7311051 4459420 n International Conference on the New EU Registration of Appellations of Origin

The Wine & Law Program at the Université de Reims is hosting a conference this Wednesday, November 23, 2010 discussing the new EU registration of appellations of origin with respect to the future of the French AOC system. The program posted the following excerpt:

The W&L Program holds an international conference on November 23, 2010, on its premises, regarding the future of the French AOC system in the light of the new EU Rules on the registration of wine names, with the participation of academics from Law, Economics, History, members of public institutions and professionals, from France, Belgium, Luxembourg, Cyprus.

For more information, see Journée d’etudes: Le  AOC à l’épreuve de la nouvelle OCM vitivinicole and Wine & Law Program.

(Image Credit: Wine & Law Program.)

{ 0 comments }

Ten Strangest Wine Laws Still in Existence

by Lindsey A. Zahn on November 17, 2010

Enobytes.com’s wine blog posted an interesting entry a few months ago with respect to the ten strangest wine laws still in existence. It is partially excerpted below.

1. Alaska – In Fairbanks, AK, it is illegal to serve alcoholic beverages to moose. I’m pretty sure Sarah Palin had nothing to do with this law since she likes to hunt moose and we all know it’s easier to hunt drunk moose than it is to hunt sober moose but don’t tell Dick Cheney. He might decide to go hunting again.

2. New York – According to the New York State Liquor Authority, you can buy wine, wine glasses, wine stoppers and corkscrews at a liquor store, but the state of New York prohibits them from selling wine gift bags. Sell a gift bag to a wine buying customer and you’ll be fined $10,000. And the kicker? No one seems to understand what the law entails, but it’s clear the state will enforce it. DDMH: Quote: After purchasing wine in several NY stores, and being presented with some pretty snazzy bags for our wine including logos (and lets not forget that nice velvety bag on Crown Royale), we’re lost on this one.

3. Oregon – “A pharmacist licensed under the laws of this state may sell alcoholic beverages without a license [in containers of not more than a one-quart capacity].” Do you have an opening for your first seating, and is there a Reserve list?

Read the rest at Top 10 Wackiest Wine Laws That Still Exist.

{ 3 comments }

IMG 8623 1024x767 The Impact of the EC Australia Wine Agreement and TRIPS on Australian Wine Law and Trade

Through the course of my recent research for my law journal note (which I have proactively been working on throughout the course of this semester), I stumbled upon a conference paper that I found particularly interesting with respect to the recent wine trade agreement between the EC and Australia. The paper overviews the bilateral agreements in Australia, the background of geographical indications in Australia, and the atmosphere that predicates the EC-Australia Wine Trade Agreement (of 1994 and 2008). To view the conference paper, visit The Impact of the EC-Australia Wine Agreement and TRIPS on Australian Wine Law and Trade.

To learn more about the EC-Australia Wine Trade Agreement of 2008, visit prior On Reserve entries titled Australia Adopts EU’s Geographical Indication System and Agreement Between Australia and the European Community on Trade in Wine. In the future, look forward to reading successive articles posted by On Reserve analyzing the context of the 2008 Wine Trade Agreement between Australia and the EC in relation the 2006 Wine Trade Agreement between the U.S. and the EC.

{ 3 comments }

Overdose on Michigan Wine Law

by Lindsey A. Zahn on November 15, 2010

IMG 6690 1024x768 Overdose on Michigan Wine Law

This past weekend, the state of Michigan hit wine law news on two very important, but separate accounts. Firstly, last Wednesday, the Michigan House and Senate passed legislation with respect to liquor control policy in the state. The Senate and the House both passed a bill that allows Michigan establishments to sell alcohol on Sunday mornings by permit. Additionally, the bill allows restaurants and bars to extend free samples of beer, wine and spirits to their customers. (See more at Michigan Lawmakers Pass Two Liquor Control Policies.)

Additionally, the Michigan wine legislation that allows for liquor sales on Sunday mornings appears to have “an overshadowed portion that could hurt Michigan’s wineries.” (See Liquor Bill Angers Some Wine Enthusiasts.) There is a section of the wine bill that prevents wineries from selling their wine products to multiple wine distributors located within a particular region. Accordingly, this could severely hurt the business and customer market for both large- and small-scale wineries within the state of Michigan.

On the upside, the bill does allow wineries within the state of Michigan to charge for wine tastings and to allow wine tastings in supermarkets.

(Sources: Liquor Bill Angers Some Wine Enthusiasts; Michigan Lawmakers Pass Two Liquor Control Policies; State Legislature Approves Alcohol Sales on Sunday.)

{ 3 comments }

TTB Proposes New Regulations on Wine

by Lindsey A. Zahn on November 11, 2010

IMG 6724 1024x638 TTB Proposes New Regulations on Wine

Last week, TTB announced several proposals with respect to wines in the United States. These proposals include the Yamhill-Carlton Viticultural Area; Use of Various Winemaking Terms on Wine Labels and Advertisements; Labeling Imported Wine with Multistate Appellations; and Disclosure of Cochineal Extract and Carmine in the Labeling of Wines, Distilled Spirits, and Malt Beverages. The proposals can be accessed at TTBGov Wine and comments can be posted until January 3, 2011.

{ 2 comments }

South Africa: Couple in Court on Wine Fraud Charges

November 10, 2010

A South African couple has been brought up on charges with respect to a claim on wine fraud. Kobus Terblanche, a former DGB executive (DGB is one of South Africa’s largest independent wine and spirits producers and distributors), and his wife had their passports seized upon their return to South Africa after a trip to Europe. “The Terblanches are accused of setting up ghost companies to export wine at inflated prices to clients they allegedly lured from DGB.” (See Couple in Court on Wine Fraud Charges.) Last year, DGB filed a civil suit against the couple for at least R12-million in damages. “Terblanche, who had worked for DGB for more than 20 years as export director and ultimately as the head of the company’s international division, allegedly used his position to divert wine orders placed by foreign clients.” (See Couple in Court on Wine Fraud Charges.)

One of the first targets, allegedly, was a Danish wine company. “Terblanche allegedly told clients that DGB ‘no longer wanted to supply bulk wine’ and the business would be taken over by a DGB subsidiary. He or his wife then allegedly created a bogus client within DGB called Bacco Trading, supposedly based in Italy.” (See Couple in Court on Wine Fraud Charges.) The court papers indicate that the Danish wine company apparently placed more than 26 orders with Bacco.

(Sources: Couple in Court on Wine Fraud Charges; Law Catches up with CT Couple Over Wine Fraud.)

Read the full article →

Georgetown’s Winery Initiative Passes

November 9, 2010

IMG 8983 1024x768 Georgetowns Winery Initiative Passes

Last week, on November 2nd, Georgetown voters overwhelming approved the bill known as the Winery Initiative and removed alcohol restrictions that were previously characteristic of the town. Voters approved this initiative “with about 77.8 percent voting in favor of changing Georgetown’s liquor laws.” (See Georgetown Residents Affirm Liquor Law Change, asserting that “Georgetown voters cast 13,280 votes in favor of passing the proposition; 3,791 were opposed, according to unofficial Williamson County voting results.”) The law, which allows restaurants and wineries in Georgetown to sell wine and beer without applying for a full liquor license, will severely cut costs for these businesses. Prior to the passage of this law, Georgetown businesses (in dry areas) were required to obtain a full liquor license; the new law allows such businesses to obtain a less inclusive license that permits them to sell wine and beer without paying the fee for full liquor license. The full liquor license is estimated to cost about $6,000 per year whereas the cost of selling only beer and wine is about $500 per year.

Accordingly, “[t]he process of changing Georgetown’s liquor laws began last year with a movement started by citizens, including members of the Downtown Georgetown Association.” (See Georgetown Residents Vote to Change Liquor Laws.) “Bringing liquor laws to citizens for review required 4,700 registered voters’ signatures on a petition. Once the signatures were verified, the Williamson County commissioners approved putting the local option election on the Nov. 2 ballot July 20.” (See Georgetown Residents Affirm Liquor Law Change.) In doing so, businesses hope to bring more options and opportunities to Georgetown Square that still promote the area’s culture and history. Previously, wineries were not allowed to come to the area because of the legal restrictions imposed by the city. Presently, many wineries are seeking to move in to the Downtown Georgetown area.

However, there are some restrictions that are imposed by this new law. “The City of Georgetown’s development code prohibits more than one bar, tavern, pub, dance hall, or nightclub from operating within 750 feet of another. Because Landmark Tavern—a private club that serves alcoholic beverages—is already open on the second floor of 701 Main St., no other tavern can open on the Square.” (See Georgetown Residents Affirm Liquor Law Change.) Additionally, the Georgetown City Council must approve a permit to any bar, tavern, pub, dance hall, or nightclub in city limits and requires that such businesses be at least 300 feet from a church, public or private school, and public hospital.

In light of prior On Reserve entry (see The Wrath of Blue (Laws)) discussing blue laws and the effects thereof, it is interesting to see a city like Georgetown impose a new law that allows for less restrictive regulations concerning the sale of alcohol by hospitality businesses to consumers while still maintaining an overcast of “blue law” restrictions. This simply reaffirms the history of alcoholic beverage regulation in the United States, a more conservative outlook and regulations with respect to alcoholic beverages.

(Sources: Georgetown Residents Affirm Liquor Law Change; Georgetown Residents Vote to Change Liquor Laws; Georgetown Voters Approve Beer, Wine Initiative.)

Read the full article →

Continuing Legal Education: What Is Wine Law?

November 8, 2010

Wine For Blondes, an excellent wine reference website, features the following video detailing the particularities of wine law and the development of wine law. The video itself was filmed for a Continuing Legal Education (CLE) session and gives an overview of exactly what wine law in the United States entails. For those On Reserve readers who have questioned the background of wine regulation, constitutionally and otherwise, in the United States, this video is a great reference to learn more about the legal background of wine.

Read the full article →