AFTER THE CRUSH

A Perspective on Wine Labels

by

Paul W. ReidlAssociate General Counsel

E. & J. Gallo Winery

I. WHAT IS A WINE?

Wine is the product of fermented grapes.Wine is the product of fermented grapes.

Wine is the product of centuries of tradition.Wine is the product of centuries of tradition.

II. WHAT GIVES WINE ITS FLAVOR? The characteristics of the grapes.The characteristics of the grapes. The geographic and climatological The geographic and climatological

conditions under which the grapes are grownconditions under which the grapes are grown The skill of the winemaker.The skill of the winemaker.

Yeast selectionYeast selection FermentationFermentation AgingAging

Wine Label Designations Have Been Influenced By Three Things: Tradition, Geography, and the Winemaker’s Ability to Influence the Final Product.

III. THERE ARE FOUR LABELING SCHEMES

Traditional Old World: “The Primacy of Traditional Old World: “The Primacy of Place.”Place.”

Traditional New World: “Who and Traditional New World: “Who and Where?”Where?”

Modern New World: “What’s the Story?”Modern New World: “What’s the Story?” Fictitious Names/Icons and Logos.Fictitious Names/Icons and Logos.

A. Traditional Old World Labeling: The Primacy of Place.

Thesis: Geography makes the wine.Thesis: Geography makes the wine.

Primary Designation: Geographic Indication.Primary Designation: Geographic Indication.

Secondary Designation: Name of the Secondary Designation: Name of the Producer.Producer.

What is a Geographic Indication?

A government-designated place with A government-designated place with special growing characteristics.special growing characteristics.

American Viticultural Area, Appellation American Viticultural Area, Appellation D’Origin, DOCG, etc.D’Origin, DOCG, etc.

This should not be confused with the name This should not be confused with the name of a geographic fixture that happens to be in of a geographic fixture that happens to be in an area where wine grapes are grown.an area where wine grapes are grown.

Examples:

Geographic Indications:Geographic Indications: BurgundyBurgundy BordeauxBordeaux Napa ValleyNapa Valley ChiantiChianti South West AustraliaSouth West Australia Barossa ValleyBarossa Valley

Not Geographic Indications:

Livingston CellarsLivingston Cellars Redwood CreekRedwood Creek Stoney PointStoney Point Black Bear RidgeBlack Bear Ridge Black ForestBlack Forest

B. Traditional New World Labeling: Who and Where? Thesis: The Skill of the Winemaker is Thesis: The Skill of the Winemaker is

Paramount.Paramount. Personification/SurnamesPersonification/Surnames Gallo, Mondavi, Franzia, Heitz, Gallo, Mondavi, Franzia, Heitz,

McWilliam’s, BeringerMcWilliam’s, Beringer

Geographic location is secondary.Geographic location is secondary.

C. Modern New World Labeling: What’s the Story?

Thesis: Apply modern marketing to wine Thesis: Apply modern marketing to wine but respect consumer preference for but respect consumer preference for tradition (geography, personification.)tradition (geography, personification.)

These labels are suggestive of people or These labels are suggestive of people or places, or simply fanciful.places, or simply fanciful.

Emphasis on a total marketing package.Emphasis on a total marketing package.

This is why there are so many labels This is why there are so many labels containing “creek,” “mountain,” “ridge,” containing “creek,” “mountain,” “ridge,” “valley,” etc. They provide a connection “valley,” etc. They provide a connection with the land.with the land.

The marketing programs for these brands The marketing programs for these brands will frequently suggest a family/winemaker will frequently suggest a family/winemaker connection.connection.

D. Fanciful Names

These can be successful, but are not as These can be successful, but are not as common as the others.common as the others.

Some of these labels have icons which Some of these labels have icons which become the symbol of the brand. Icons are become the symbol of the brand. Icons are useful for cross-merchandizing.useful for cross-merchandizing.

IV. THE FUTURE?

Old World Modernization?Old World Modernization? Example: French Ministry report.Example: French Ministry report.

Heritage Labeling?Heritage Labeling? Example: Franzia package.Example: Franzia package.