[Federal Register Volume 64, Number 3 (Wednesday, January 6, 1999)]
[Proposed Rules]
[Pages 813-816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34844]
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DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
27 CFR Part 4
[Notice No. 871]
RIN 1512-AB80
Petition for Johannisberg Riesling; Proposed Addition of Grape
Variety Names for American Wines; Request for Additional Information
for Other Proposed Grape Varieties (98R-406P)
AGENCY: Bureau of Alcohol, Tobacco and Firearms, Department of the
Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) has received
a petition proposing to extend the phase-out date for the use of the
term Johannisberg Riesling as a designation for American wines, from
January 1, 1999, until January 1, 2006. The effect of this proposed
change would allow U.S. wineries to use Johannisberg Riesling as a
designation for American wines made from White Riesling grapes for an
additional seven years. The petition was received from the law firm of
Buchman & O'Brien, and was filed on behalf of trade associations
representing United States wineries. This petition asserts that this
change would allow American wineries additional time to educate
consumers about the name change, and would provide additional time for
wineries to change labels, packaging, and merchandising material for
this wine. This petition proposes to extend the phase-out date for the
term Johannisberg Riesling to January 1, 2006. After that date, wine
made from White Riesling grapes would be required to be designated
either ``Riesling'' or ``White Riesling.''
ATF has also received petitions proposing to add two new names,
Traminette and Aglianico, to the list of prime grape variety names for
use in designating American wines. Finally, ATF is soliciting comments
or petitions for other grape varieties which wineries wish to use in
producing and designating American varietal wines. These proposals are
intended to ensure the list of prime grape names reflects grape
varieties currently in use. ATF believes the listing of approved names
of grape varieties for American wines will help standardize wine label
terminology and prevent consumer confusion.
DATES: Written comments must be received by March 8, 1999. ATF
specifically requests comments on the clarity of the proposed rule and
how it may be made easier to understand.
ADDRESSES: Send written comments to: Chief, Regulations Division,
Bureau of Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, DC
20091-0221; Notice No. 871.
A copy of the petition and written comments in response to this
notice of proposed rulemaking will be available for public inspection
during normal business hours at: ATF Reference Library, Office of
Public Affairs and Disclosure, Room 6300, 650 Massachusetts Avenue, NW,
Washington, DC 20226.
FOR FURTHER INFORMATION CONTACT: Ms. Teri Byers, Regulations Division,
650 Massachusetts Avenue, NW, Washington, DC 20226; Telephone (202)
927-8195, or e-mail: thbyers@atfhq.atf.treas.gov>.
SUPPLEMENTARY INFORMATION:
Background
Under Sec. 4.23(b), a wine bottler may use a grape variety name as
the designation of a wine if not less than 75 percent of the wine (51
percent in some circumstances) is derived from that grape variety.
Under Sec. 4.23(d), a bottler may use the name of two or more grape
variety names as the designation of a wine if all varieties are listed
on the brand label and the percentage of the
[[Page 814]]
wine derived from each grape variety is shown on the label.
Treasury Decision ATF-370, 61 FR 522, January 8, 1996, adopted a
list of grape variety names which ATF has determined to be appropriate
for use in designating American wines. The list of prime grape names
and their synonyms appears at Sec. 4.91, while additional alternative
grape names temporarily authorized for use are listed at Sec. 4.92.
Section 4.93 provides a means by which interested persons may petition
the Director for inclusion of additional grape variety names in the
list of prime grape names. Treasury Decision ATF-370 did not include
Johannisberg Riesling in the list of prime names, either as a prime
grape name or as a synonym. Johannisberg Riesling was instead listed as
an alternative name in Sec. 4.92 for use in advertising and labeling
wines only until January 1, 1999, after which the required varietal
designation for this wine would be Riesling or the synonym White
Riesling.
A. Johannisberg Riesling
Treasury Decision ATF-370 authorized the use of the name
``Riesling,'' standing by itself, as the prime name for wine made from
this grape. Through evidence received during the rulemaking process,
ATF determined that there was no longer the necessity to distinguish
wine made from the true Riesling grape by use of the term
``Johannisberg Riesling.'' Based on this evidence, and to provide
accurate and correct grape variety names, ATF concluded that the name
Johannisberg Riesling should no longer be permitted as a grape variety
designation. Accordingly, Johannisberg Riesling was removed as a
synonym for Riesling and made an alternative name in Sec. 4.92.
Johannisberg Riesling is listed in Sec. 4.92(b), permitting its use in
labeling wines prior to January 1, 1999.
ATF has received a petition from the law firm of Buchman & O'Brien,
filed on behalf of trade associations representing United States
wineries, requesting that ATF amend Sec. 4.92 by adding a new paragraph
(c). This proposed paragraph would authorize the use of the term
``Johannisberg Riesling'' for wines bottled prior to January 1, 2006.
At the same time, the petition would remove Johannisberg Riesling from
the list of grape names in Sec. 4.92(b) which may only be used as grape
wine designations for wine bottled prior to January 1, 1999.
The petition gives several reasons for extending the phase-out date
of the term Johannisberg Riesling for American wines. Despite the fact
that ATF made it clear in the notices issued prior to TD ATF-370 that
there was significant controversy surrounding the term Johannisberg
Reisling, the petition alleges that ATF failed to provide the industry
with notice that it was phasing out the term. The petition states that
ATF provided such notice with other terms, e.g., Cabernet, Grey
Reisling, Muscat Frontignon and Napa Gamay, because the two notices of
proposed rulemaking issued prior to TD ATF-370 specifically proposed
phasing out these terms. However, these notices did not specifically
propose to phase-out the term Johannisberg Riesling. The petitioner
also cites the 10-year phase-out period in the recently published
Treasury decision relating to Gamay Beaujolais as support for extending
the period. The petition asserts that because the Johannisberg Riesling
designation has been in documented commercial use for over 100 years,
an additional 7 years would provide enough transitional time to educate
the consuming public regarding the designation change. Finally, the
petition states that the abrupt elimination of Johannisberg Riesling
would cause material economic harm and hardship to the United States
wine industry.
In addition to the petition from Buchman & O'Brien, the Deutsches
Weininstitut GmbH has submitted a letter supporting the extension of
the transition period for the phase-out of Johannisberg Riesling.
Recent letters from wine industry members have demonstrated their
support for an extended transition period. Lastly, a marketing
communications company, ELGIN, provided marketing information
illustrating the negative impact on wineries and consumers should ATF
restrict the Johannisberg Riesling phase-out period to three years.
ELGIN drew a comparison between Johannisberg Riesling and the 1982
Nissan Corporation's decision to change from the Datsun brand name to
Nissan. The change was implemented in the United States over a six year
period, however Nissan still saw it's share drop in the first two years
from 5.9 percent to 4.5 percent due to the name change.
ATF requests comments from interested persons concerning this
proposal to extend the phase-out date for the use of Johannisberg
Riesling for seven years. ATF is also seeking any additional marketing
studies or information regarding the impact on wineries and consumers
should ATF restrict the phase-out period of Johannisberg Riesling to a
shorter period. ATF wishes to make it clear that the airing of this
petition does not represent any change in ATF's position, as stated in
the preamble of T.D. ATF-370, to eventually phase-out use of the term
Johannisberg Riesling. This proposal only relates to Johannisberg
Riesling and does not concern the use of geographic terms in labeling
American wines.
B. Proposed Addition of Grape Varieties
ATF has received several petitions proposing that new grape variety
names be listed in Sec. 4.91. Under Sec. 4.93 any interested person may
petition ATF to include additional grape varieties in the list of prime
grape names. Information for a petition includes evidence of the
following: (1) Acceptance of the new grape variety; (2) the validity of
the name for identifying the grape variety; (3) information that the
variety is used or will be used in winemaking; and (4) information that
the variety is grown and used in the United States. For the approval of
names of new grape varieties, the petition should include: (1) A
reference to the publication of the name of the variety in a scientific
or professional journal of horticulture or a published report by a
professional, scientific or winegrowers' organization; (2) a reference
to a plant patent, if patented; and (3) information about the
commercial potential of the variety such as the acreage planted or
market studies. Section 4.93 also places certain restrictions on grape
names which will be approved. A name will not be approved if it has
previously been used for a different grape variety; if it contains a
term or name found to be misleading under Sec. 4.39; or if a name of a
new grape variety contains the term ``Riesling.'' The Director reserves
the authority to disapprove the name of a newly-developed grape variety
if the name contains words of geographical significance, place names,
or foreign words which are misleading under Sec. 4.39.
While two of the petitions proposing additional names appear to
have provided sufficient evidence to satisfy Sec. 4.93, ATF believes
the other petitions need further evidence. Consequently, ATF is
requesting further information from all sources regarding those
petitions. ATF has reviewed available sources to determine whether any
of the proposed names are entitled to protection as geographic
indications under international agreements. ATF found no information
indicating that any of these proposed variety names are entitled to
such protection.
1. Petitions Appearing To Have Sufficient Evidence To Satisfy Sec. 4.93
Traminette Petition. At the request of Arbor Hill Associates,
Naples, NY, Dr. Bruce Reicsh of the New York State
[[Page 815]]
Agricultural Station, Cornell University, Geneva, NY, submitted a
letter requesting that ATF include the grape variety ``Traminette'' on
the list of prime grape names. According to Reisch's letter, Traminette
is a grape variety recently released by Cornell University. It is a
cross of Joannes-Seyve 23-416 with Gewurztraminer which was first made
in 1965. The grapes from this cross were found to make excellent wine
with similarities to their vinifera parent. Through extensive
experimental plantings, Traminette has proven to be more winter hardy
than its parent, very productive, and moderately resistant to powdery
mildew and black rot.
The petition asserts that wines made with Traminette grapes have
received high scores from Geneva Experimental Station taste panels
since 1972, and amateur winemakers have produced good wines using these
grapes. According to the petition, this grape was informally known as
the ``Gewurztraminer Hybrid'' until recently when the New York State
Agricultural Research Station in Geneva formally named this hybrid
``Traminette.'' The Traminette hybrid will not be patented. Vines are
commercially available for sale, and at least one winery has applied
for a certificate of label approval for a Traminette wine.
Based on the evidence presented in this letter, ATF proposes to add
the grape variety ``Traminette'' to the list of prime grape names at
Sec. 4.91.
Aglianico Petition. The Caparone Winery located in Paso Robles,
California, petitioned ATF to add the grape variety name ``Aglianico''
to the list of prime grape names at Sec. 4.91. According to their
petition, Aglianico has long been recognized as one of Italy's finest
red grape varieties. The petition states that this grape was cultivated
in Italy by the Greeks and early Romans making it one of the oldest
identified grape varieties.
Caparone Winery's petition states that Aglianico vines have been
grown in the collection of the University of California at Davis for
more than 50 years, and that their collection has been certified as
true to variety. Their petition includes a letter from the Foundation
Plants Materials Service at UC Davis attesting to the fact that
Aglianico vines are grown in their vineyards and that these vines have
been inspected by Dr. Anna Schneider, a recognized Italian grape
variety expert and found to be true to variety.
Caparone Winery states they currently (as of June 1996) have 3\1/2\
acres of Aglianico grapes planted, that they have produced four
vintages of wine from these grapes, and that the quality of wine
produced from them is excellent. They further state that other
California wineries have plantings of this grape in their vineyards,
and they expect there will be continuing interest in making wine from
these grapes.
Based on the evidence presented in this petition, ATF proposes to
add the grape variety ``Aglianico'' to the list of prime grape names at
Sec. 4.91.
2. Proposals Currently Lacking Sufficient Evidence To Satisfy Sec. 4.93
Since the publication of T.D. ATF-370 in January 1996, ATF has
received other petitions and requests to use grape variety names not
listed in Sec. 4.91. Some of these requests have not contained all of
the information required by Sec. 4.93, or have requested names that ATF
has not been able to verify to be the correct variety as grown in the
United States. Accordingly, we seek information about these proposed
grape varieties which might lead to their future listing. If ATF
receives sufficient documentation relative to specific grape varieties
in response to this notice, we will list those names in Sec. 4.91.
Vernaccia. Millbrook Winery, Millbrook, NY petitioned ATF to list
the grape variety ``Vernaccia.'' Millbrook's petition states that they
obtained Vernaccia cuttings from the Foundation Plants Materials
Service at University of California at Davis several years ago, and
have cultivated this grape in their vineyards.
According to available literature, the term ``Vernaccia'' is
associated with several unrelated Italian grape varieties including
Vernaccia di Oristano, Vernaccia di San Giminiano, Vernaccia di
Serrapetrona also called Vernaccia Nera, and Vernaccia Trentina also
called Bianchetta Trevigiana. These varieties include both green and
black grapes, and they are used in making distinctively different red,
white, and sparkling wines. It is unclear from Millbrook's petition or
from the Foundation Plants Materials Service listing which
``Vernaccia'' grape is actually contained in the FPMS collection and
grown in vineyards in the United States. Until a positive determination
is made, ATF will not list a nonspecific ``Vernaccia'' grape in the
list of prime grape names. ATF seeks any information which will enable
a positive identification of the ``Vernaccia'' grape(s) grown in the
United States. If the evidence submitted pursuant to this notice
supports inclusion of this name, then it will be adopted as part of the
final rule.
Counoise. Eberle Winery, Paso Robles, California, petitioned ATF to
list the grape variety Counoise in Sec. 4.91. Although this is a well
documented red variety from the Rhone region of France, ATF has
insufficient information to determine whether it is suitable for wine
production in the United States, or the extent to which it may be grown
domestically. ATF welcomes information about the domestic cultivation
of this grape variety. If the evidence submitted pursuant to this
notice supports inclusion of this name, then it will be adopted as part
of the final rule.
Trousseau vs. Bastardo. Section 4.91 lists Trousseau as a prime
grape name while Sec. 4.92 lists Bastardo as an alternative name for
this grape variety which cannot be used for designating American wine
after January 1, 1997. Trousseau is a French name for the grape while
Bastardo is the Portuguese name. Because of the use of this grape in
producing Port-style dessert wines, ATF has been requested to reexamine
whether the name Bastardo should be authorized as a synonym for
Trousseau, or whether Bastardo should replace Trousseau as the prime
grape name at Sec. 4.91. ATF welcomes comments on these names.
Miscellaneous varieties. ATF is aware of several newly-developed
grape varieties including several which may have potential for use in
winemaking. ATF is aware also that many domestic wineries are
experimenting with old world vinifera varieties not currently listed in
Sec. 4.91. We would like to remind the public that we welcome petitions
from interested persons proposing to list additional grape varieties at
Sec. 4.91.
Public Participation--Written Comments
ATF requests comments from all interested persons. All comments
received on or before the closing date will be carefully considered.
Comments received after that date will be given the same consideration
if it is practical to do so, but assurance of consideration cannot be
given except as to comments received on or before the closing date.
ATF will not recognize any material in comments as confidential.
Comments may be disclosed to the public. Any material that a respondent
considers to be confidential or inappropriate for disclosure to the
public should not be included in the comment. The name of any person
submitting a comment is not exempt from disclosure.
Comments may be submitted by facsimile transmission to (202) 927-
8602, provided the comments: (1) are legible; (2) are 8\1/2\'' x 11''
in size; (3) contain a written signature; and (4) are three pages or
less in length. Comments sent by FAX in excess of three pages
[[Page 816]]
will not be accepted. Receipt of FAX transmittals will not be
acknowledged. Facsimile transmitted comments will be treated as
originals.
Executive Order 12866
It has been determined that this proposed regulation is not a
significant regulatory action as defined by Executive Order 12866.
Accordingly, this proposal is not subject to the analysis required by
this Executive Order.
Regulatory Flexibility Act
It is hereby certified that this regulation will not have a
significant economic impact on a substantial number of small entities.
This regulation will extend the phase-out period for the use of the
term Johannisberg Riesling and it will permit the use of other grape
varietal names. The regulation will not impose any recordkeeping or
reporting requirements. Accordingly, a regulatory flexibility analysis
is not required because the final rule is not expected (1) to have
significant secondary or incidental effects on a substantial number of
small entities; or (2) to impose, or otherwise cause a significant
increase in the reporting, recordkeeping, or other compliance burdens
on a substantial number of small entities.
Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(j)) and its implementing regulations, 5 CFR Part 1320, do not
apply to this notice of proposed rulemaking because no requirement to
collect information is proposed.
Disclosure
Copies of this notice and written comments will be available for
public inspection during normal business hours at: ATF Reading Room,
Disclosure Branch, Room 6300, 650 Massachusetts Avenue NW, Washington,
DC.
Drafting Information. This notice was written by Charles N. Bacon
and Teri H. Byers, Regulations Division, Bureau of Alcohol, Tobacco and
Firearms.
List of Subjects in 27 CFR Part 4
Advertising, Consumer protection, Customs duties and inspections,
Imports, Labeling, Packaging and containers, Wine.
Authority and Issuance
Accordingly, 27 CFR Part 4, Labeling and Advertising of Wine, is
amended as follows:
PART 4--AMENDED
Paragraph 1. The authority citation for Part 4 continues to read as
follows:
Authority: 27 U.S.C. 205.
Par. 2. Section 4.91 is amended by adding the names ``Aglianico''
and ``Traminette,'' in alphabetical order, to the list of prime grape
names, to read as follows:
Sec. 4.91 List of approved prime names.
* * * * *
Aglianico
* * * * *
Traminette
* * * * *
Par. 3. Section 4.92 is amended by removing the name ``Johannisberg
Riesling'' from paragraph (b) and revising paragraph (b), and by adding
a new paragraph (c), to read as follows:
Sec. 4.92 Alternative names permitted for temporary use.
* * * * *
(a) * * *
(b) Wines bottled prior to January 1, 1999.
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Alternative name Prime name
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Cabernet.................................. Cabernet Sauvignon.
Grey Riesling............................. Trousseau gris.
Muscat Frontignan......................... Muscat blanc.
Muscat Pantelleria........................ Muscat of Alexandria.
Napa Gamay................................ Valdiguie.
Pinot Saint George........................ Negrette.
Sauvignon vert............................ Muscadelle.
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(c) Wines bottled prior to January 1, 2006.
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Alternative name Prime name
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Johannisberg Riesling..................... Riesling.
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Signed: October 16, 1998.
John W. Magaw,
Director.
Approved: November 20, 1998.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff & Trade Enforcement).
[FR Doc. 98-34844 Filed 12-31-98; 2:07 pm]
BILLING CODE 4810-31-U