FINAL COMMENTS TO TTB NOTICE 160 DUE ON WEDNESDAY DECEMBER 7TH – WE ARE ASKING THE TTB TO EXTEND THE COMMENT PERIOD AGAIN TO ALLOW FOR INDUSTRY NEGOTIATION AND ALIGNMENT OF INTERESTS

As the TTB’s 90-day extension to submit comments on the proposed rule changes governing the use of label exemptions for wine sold intra-state comes to a close, there is only one thing that has been settled.  TTB Notice 160 is very controversial.

The original proposal responded to the concerns of wineries in various AVA regions that when grapes from those regions are being sold to wineries outside of the state the resulting wine could then be labeled under the current “in-state sale only” exemption with AVA identifying information; contrary to non-exempt federal AVA labeling requirements mandating that the wine bearing an AVA be produced almost entirely within the AVA. 

The bottom line is that under Notice 160, the exemption would be no longer available and the out of state wineries that buy the grapes from AVA areas would not be permitted to identify on their labels where the wine grapes used in their wine came from.  This would both depress the price and desirability of wine grapes sourced from growers in areas that carry an AVA designation, and result in non-California wineries using out of state grapes from AVA designated areas being unable to tell consumers where their grapes originated.

We extensively summarized the various points of view in our August 15, 2016 blog post before the last extension of the TTB comment period.  The current extension for comments period expires on December 7, 2016 and we are sending this blog to the TTB as a comment. 

What we are asking for is another extension to allow time for the industry to attempt to arrive at a negotiated consensus.  If you agree with us, please copy the blog and email it to the TTB as an endorsed comment.  Here is the Notice as published in the Federal Register with filing instructions.

The purpose in asking for another extension is to permit the different affected participants (wineries and growers) time to arrive at a compromise that both permits the sale of the fruit, and satisfies the consumers right to know where the grapes in their wine came from. Without a compromise one possible outcome is First Amendment litigation that could undermine the entire AVA system.  Another outcome could be widespread scoffing at the AVA system through moving the identifying information that should be on the label on-line.

Is a compromise possible?  The Napa Valley Vintners have been circulating a white paper laying out a possible compromise through a mechanism they called “Grape Source Information” on the back label of a wine. The grape source information could not use the AVA of the area from which the grapes emanated but could use the address of the vineyard from which the fruit came. It is yet to be seen whether or not NVV will file this proposal with the TTB, as their first comment filed in August simply calls for the proposed changes to be approved.  Regardless, this is a very promising approach. However, in its current form (with identification limited to counties) it doesn’t completely accomplish the goal because (among other address related identification issues) viticultural areas (such as Lodi) are often located in different counties or in counties that are not that well known to consumers. 

However it is a framework for compromise and, as such, we believe that the discussions should be continued.

We urge the TTB to keep the comment period open for at least another 90 days.

  1. Strategic Exit Planning: Positioning Your Alcohol Beverage Business for Successful Acquisition or Investment
  2. New California Alcohol Laws for 2024 – a Mixed Bag of Privileges, Punishments, Clarifications, and Politics
  3. TTB Speaks up on Social Media
  4. Alcohol Trade Practices Update
  5. President Biden just made a big cannabis announcement... what does it mean?
  6. The Uniform Law Commission – Encouraging Consistent State by State Definitions, Protocols and Procedures
  7. San Francisco to the Governor - Review the RBS Program and Delay Implementation. Problems must be Corrected.
  8. TTB and Consignment Sales – Is There a Disconnect Between Policy Development and Business Reality?
  9. RBS ADDENDUM – THE LATEST FROM THE ABC AS THE AGENCY PROVIDES MORE INFORMATION ON THE CALIFORNIA ABC’S MANDATORY RESPONSIBLE BEVERAGE SERVER PROGRAM
  10. THE STATE OF TO-GO BOOZE IN CALIFORNIA
  11. BOOZE RULES SPECIAL EDITION – THE RESPONSIBLE BEVERAGE SERVICE PROGRAM FACTS AND REQUIREMENTS
  12. Competition in the Beverage Alcohol Industry Continues Under the Microscope – Part 3
  13. Competition in the Beverage Alcohol Industry Under the Microscope – Part 2
  14. Competition in the Beverage Alcohol Industry Now Under the Microscope
  15. Alcohol Marketplaces 2.0 Part 5: Looking Ahead
  16. It’s Time for a Regulatory Check-Up: Privacy Policies for email marketing and websites
  17. Alcohol Marketplaces 2.0 Part 4: Who’s responsible for ensuring legal drinking age?
  18. Alcohol Marketplaces 2.0 Part 3: Follow the Money
  19. BOOZE RULES 2021 – NEW CONTAINER SIZES APPROVED FOR ALCOHOLIC BEVERAGES: KEEPING TRACK OF THE TTB’S ATTEMPTS TO REGULATE CONTANER SIZES
  20. Alcohol Marketplaces 2.0 Part 2: Collect sales tax from marketplaces or comply with alcohol guidance?
  21. Alcohol Marketplaces 2.0 Part 1: Solicitation of sales by unlicensed third-party providers
  22. Federal Cannabis Legalization Fortune-Telling
  23. BOOZE RULES – THE DIRECT SHIPPING WARS
  24. California ABC provides additional Covid guidance on virtual events and charitable promotions
  25. Hot Topics for Alcohol Delivery 2020
  26. California Reopening Roadmap is Now a Blueprint for a Safer Economy
  27. The Hospitality Reopening Roadmap to Success
  28. Salads Not A Meal in California, Says ABC
  29. Delivery Personnel Beware – The ABC is Coming for You and for the Licensees Hiring You to Deliver Alcoholic Beverages - This Time Its Justified
  30. Licensees Beware – the Harsh New ABC Enforcement Rules Are Effective Right Now
  31. Part 2: LEGAL FAQS ON REOPENING CA RESTAURANTS, BREWPUBS, BARS AND TASTING ROOMS
  32. John Hinman’s May 22, 2020 interview with Wine Industry Advisor on the ABC COVID-19 Regulatory Relief initiatives and the ABC “emergency rule” proposals
  33. Booze Rules May 21 - The Latest on the ABC Emergency Rules
  34. Part 1: Legal FAQs on Reopening CA Restaurants, Brewpubs, Bars and Tasting Rooms
  35. The ABC’s Fourth Round of Regulatory Relief - Expanded License Footprints Through Temporary COVID-19 Catering Authorizations, and Expanded Privileges for Club Licensees
  36. BOOZE RULES – May 17, 2020 Special Edition
  37. ABC ENFORCEMENT - ALIVE, ACTIVE AND OUT IN THE COMMUNITY
  38. Frequently Asked Questions about ABC’s Guidance on Virtual Wine Tastings
  39. ABC Keeps California Hospitality Industry Essential
  40. ABC REGULATORY RELIEF – ROUND TWO – WHAT IT MEANS
  41. Essential Businesses Corona Virus Signage Requirement Every Essential Business in San Francisco Must Post Sign by Friday, April 3rd
  42. Promotions Compliance: Balancing Risk and Reward
  43. The March 25, 2020 ABC Guidance: Enforcement Continues; Charitable Giving Remains Subject to ABC Rules; and More – What Does it all Mean?
  44. Restaurant and Bar Best Practices – Surviving Covid 19, Stay at Home and Shelter in Place Under the New ABC Waivers
  45. Economically Surviving the Covid Crisis and the Shelter in Place Orders: A Primer on Regulatory interpretations and Options
  46. Booze Rules – Hinman & Carmichael LLP and the Corona Virus
  47. Booze Rules: 2020 and the Decade to Come – Great Expectations (with apologies to Charles Dickens)
  48. The RBS Chronicles: If Your Business serves Alcoholic Beverages YOU NEED TO READ THIS AND TAKE ACTION!
  49. RESPONSIBLE BEVERAGE SERVICE ACT HEARING – OCTOBER 11TH IN SACRAMENTO – BE THERE!
  50. WHEN THE INVESTIGATOR COMES CALLING – BEST PRACTICES.
  51. RESPONSIBLE BEVERAGE SERVICE ACT PROPOSED ABC RULES 160 TO 173 – WHY THE RUSH?
  52. The TTB Crusade Against Small Producers and the “Consignment Sale” Business Model
  53. TTB Protocols, Procedures, and Investigations
  54. Wine in a 250 ML can – the Mystery of the TTB packaging Regulations and Solving the Problem by Amending the Regulations
  55. The Passing of John Manfreda of the TTB: a Tragedy for his family and a Tragedy for the Industry he so Faithfully Served for so Long.
  56. Pride in a Job Well-done, or Blood Money? The Cost of Learning the Truth from the TTB about the Benefits to Investigators from Making Cases Against Industry Members
  57. How ADA Website Compliance Works – The Steps You Can Take to Protect Yourself, Your Website and Your Social Media from Liability
  58. Supplier and Distributor Promotional “Banks,” Third Party Promotion Companies and Inconsistent TTB Enforcement, Oh My!
  59. “A Wrong Without a Remedy – Not in My America” – The TTB Death Penalty for Not Reporting Deaths
  60. Is a 1935 Alcohol Beverage Federal Trade Practice Law Stifling Innovation?
  61. Decoding the BCC’s Guidance on Commercial Cannabis Activity.
  62. Prop 65 - Escaping a "Notice of Violation"
  63. TTB Consignment Sales Investigations - What is Behind the Curtain of the TTB Press Releases?
  64. Heads Up! The ABC Is Stepping Up Enforcement Against Licensees Located Near Universities
  65. Coming Soon: New Mandatory Training Requirements for over One Million “Alcohol Servers” In California – September 1, 2021 will be here quickly
  66. 2019 Legislative Changes for California Alcohol Producers – a Blessing or a Curse?
  67. A Picture (On Instagram) Is Worth A Thousand Words
  68. Playing by the Rules: California Cannabis Final Regulations Takeaways
  69. Hinman & Carmichael LLP Names Erin Kelleher Partner and Welcomes Gillian Garrett and Tsion “Sunshine” Lencho to the Firm
  70. Congress Makes History and Changes the CBD Game for Good
  71. Pernicious Practices (stuff we see that will get folks in trouble!) Today’s Rant – Bill & Hold
  72. CBD: An Exciting New Fall Schedule… or Not?
  73. MISSISSIPPI RISING - A VICTORY FOR LEGAL RETAILER TO CONSUMER SALES, AND PASSAGE OF TITLE UNDER THE UNIFORM COMMERCIAL CODE
  74. California ABC's Cannabis Advisory - Not Just for Stoners
  75. NEW CALIFORNIA WARNINGS FOR ALCOHOLIC BEVERAGES AND CANNABIS PRODUCTS TAKE EFFECT AUGUST 30, 2018, NOW INCLUDING ADDENDUM REGARDING 2014 CONSENT AGREEMENT PARTIES AND PARTICIPANTS
  76. National Conference of State Liquor Administrators – The Alcohol Industry gathers in Hawaii to figure out how to enforce the US “Highly Archaic Regulatory Scheme.”
  77. Founder John Hinman Honored with the Raphael House Community Impact Award
  78. ROUTE TO MARKET AND MARKETING RESTRICTIONS - NAVIGATING REGULATORY SYSTEM CONSTRAINTS
  79. Alcohol and Cannabis Ventures: Top 5 Legal Considerations
  80. ATF and TTB: Is Another Divorce on the Horizon? What’s Going on with the Agency?
  81. STRIKE 3 - YOU REALLY ARE OUT! THE ABC'S STRICT APPLICATION OF PENALTIES FOR SALES TO MINORS
  82. TTB Temporarily Fixes Problem with Fulfillment Warehouse Tax Credits - an “Alternate Procedure” for Paying Taxes & Reporting
  83. CUSTOMERS WHO HAVE HAD ONE TOO MANY - THE FREE TRANSPORTATION DILEMMA
  84. The Renaissance of Federal Unfair Trade Practices - Current Issues and Strategies
  85. ‘Twas the week before New Year’s and the ABC is out in Force – Alerts for the Last Week of 2017, including the Limits on Free Rides
  86. Big Bottles, Caviar and a CA Wine Strong Silent Auction for the Holidays!
  87. The FDA and the Wine and Spirits Industry – Surprise inspections anyone?
  88. NORTHERN CALIFORNIA WILDFIRES: UPDATED REGULATORY AGENCY DISASTER RELIEF RESOURCES AT A GLANCE
  89. NORTHERN CALIFORNIA WILDFIRES: REGULATORY AGENCY DISASTER RELIEF RESOURCES AT A GLANCE
  90. Soon to come to your Local Supermarket– Instant Redeemable Coupons of the digital age!
  91. The License Piggyback Dilemma – If it Sounds Too Good to be True, it Probably is
  92. A timely message from our Florida colleagues on the tied house laws, the three-tier system and the need for reform
  93. ABC Declaratory Rulings – A Modest Proposal Whose Time has Come
  94. More on FDA Inspections - Breweries, Distilleries and Questions
  95. WHY THE FDA IS INSPECTING WINERIES
  96. Senate Bill 378—The Proposed Demise of Due Process for Alcohol Licensees
  97. ABC Enforcement - Trends and Predictions
  98. The Corruption Chronicles – Volume One: A New Hope
  99. New Alcohol Delivery Oversight on the Horizon
  100. Michigan: Canary in the DtC Coal Mine?