Court Blocks Statute on New Labeling of Napa Wines

New legislation intended to preserve the cachet of Napa Valley wine was dealt a setback by a California appellate court that ordered a temporary injunction blocking the statute from taking effect.

The law, passed in September, requires wines using “Napa” in their brand names to get at least 75% of their grapes from the prestigious grape-growing county.

The injunction was sought by Bronco Wine Co., which makes Napa Ridge, Rutherford Vintners and Napa Creek wines from grapes obtained in other parts of the state. The ruling by the 3rd Appellate District Court, which went into effect Monday, allows Bronco to sell its wine until the court renders an opinion.

Attorneys for San Joaquin-based Bronco, which makes primarily jug wines, argue that the new law is unconstitutional because it bars labels that have already been approved by federal regulators and restricts the company’s commercial free speech.

“I think it’s fair to say that the labels contain more than adequate disclosure about the origin of the wine,” said Peter Brody, an attorney with the Washington, D.C.-based law firm representing Bronco.

The origin of the grapes--typically Lodi, Stanislaus County or the Central Coast--is printed on the front and back labels, Brody said.

However, wine industry observers say they aren’t simply evoking the romance of California wine country. Through a federal loophole, they say, consumers are being tricked into thinking they are drinking wine from the Napa Valley.

“The idea of tying [wine producing] regions to the quality of the wine is an age-old concept in Europe,” said Rich Cartiere, who writes the Wine Market Report, an industry journal in Calistoga. “I’m convinced that most consumers know that Napa and Sonoma are good [wine regions] and Lodi is kind of a maybe.”

The law was drafted at the urging of the Napa Valley Vintners Assn. after Bronco’s $40-million purchase of the Napa Ridge name from Beringer Wine Estates last January. It affects wine produced or bottled after Jan. 1, 2001.

“For more than a century, Napa County wines have been renowned for their quality,” Gov. Gray Davis said in September when he signed the bill. “This legislation will end deceptive marketing and protect the reputation of Napa Valley wines.”

Bronco representatives contend it’s simply a protectionist measure designed to protect an exclusive group of vineyard operators. Attorneys say there is no similar protection for Sonoma or Monterey counties or other specific areas within Napa County such as Stag’s Leap.

Representatives of the NVVA did not respond immediately to calls.