Court Puts a Cork in Wine Labeling Law

A state appeals court has ruled that a handful of wine brands can still use “Napa” on their label, even if no grapes in the bottle come from the prestigious wine-growing valley.

The decision allows Ceres-based Bronco Wine Co., a producer of inexpensive wines made from grapes grown in Stanislaus County and elsewhere, to continue to sell its Napa Ridge, Rutherford Vintners and Napa Creek brands, as long as it puts the source of the grapes somewhere on the label.

The 3rd District Court of Appeal in Sacramento on Wednesday voided a state law, saying it could not interfere with federal regulation of brand names.

Napa Valley winemakers had been fighting Bronco’s “Napa” labels for years, claiming they deceive consumers and sully the region’s vaunted reputation.

Bronco, which grosses about $17 million annually from these wines, argued that federal regulators had approved the labels, preempting state legislation.

Only brands that have been in use since July 7, 1986, when a federal “grandfather” clause took effect -- can use “Napa” and related names as part of their brands, the court found.

Bronco acquired its Napa brands in the 1990s, hoping to trade on the cachet of the area without having to pay Napa-grown grape prices.