Comment from Carter, Ralph and Marie

Comments regarding Proposed Revision of American Viticultural Area Regulations (2006-325R) as posted in Notice No. 78. Document No. TTB-2007-0068-0001 The stated mission of the TTB's American Viticulture Area program is to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. The percentage of the area involved in viticulture activity does not help the vintner nor the consumer in this endeavor. The factors that influence the taste of the wine include variety of grape, climate (temperatures, rainfall, wind, fog etc.), soils, geology, physical features, elevation, latitude, sun aspect and local styles of wine making. Variety and style of wine making are not under the purview of the TTB but the other factors are the quinsessential requirements for establishing an American Viticulture Area. Those factors are determined by natural geographic features and may include a small area or more than a million acres of relatively similar climate, soils, elevation, physical features and geology that based on scientific observatons cannot be reasonable divided into smaller zones. Natural geographic features come in different sizes as does the number of acres under vine (sample vineyard acreage in an AVA): 1. 10 acres / 15,500 acre area 2. 1500 acres / 5.7 million acres 3. 100 acres / 450,000 acres All three have the same percentage ratio: .02% (that is less than 1 %) Even though geographic features come in varying sizes, the rate at which growers develop vineyards at these pioneering stages follow similar size stages of growth, such as after the first ten years they are in the 10 to 100 acre range. Growers and vintners in extra large natural geographic features (valley or basin) would be unfairly burdened by the percentage rule even though they are well established, have contributed significantly to the local marketplace and wish to give recognition to the uniqueness of the growing conditions. The AVA does this with integrity. For example, we know of successful wine grape growers who have been in the marketplace each for about 10 years and each located in their own separate and unique growing condtions dictated by two different geological features. One just happens to be fifty times larger than the other. It would be an unfair burden for the growers in the larger area to be forced, by law and the TTB's proposed percentage rule, to wait decades to submit a petition to establish an AVA. The presence of one or one hundred wine grape growers in a given geographic area also does not determine the parameters that define the quality and flavor of the wine as is the stated goal of the AVA Program. Every wine growing area had to have had a pioneer who was willing to try growing and vinifying grapes. Two or three wine grape growers in a unique growing area may only represent a minute percentage of the land in the area but still produce a unique product worthy of recognition and distinction of an AVA. Pioneer growers need momentum at this early stage of development in an area or region. This recognition can help the consumer and may actually encourage other growers to consider the area and thus futher enhance the economy of the area while still only involving a statistically insignificant portion of the geographical area which has the same climate, soils, elevation and topography. The American Viticulture Area program is still in its infancy when compared to other wine growing regions of the world. The earliest AVAs (from the 1980s) were often entire states, regions or counties and although they did identify a place, these areas were often so extremely diverse in climate, soils, geology, topography etc. that they did not help the vintner nor consumer identify the wine qualities. The next stage of development has been to create smaller AVAs that do help both vintner and consumer because now the petitions identify the uniqueness of a growing area, how it differs from the surrounding area and the viticultural significance of those features. The AVA process and the TTB Rule System is at a historic junction where the American wine industry is competing globally at a time when a huge portion of the world wide wines are indistinguishable from one another. In the wine world the reaction to this homogeneity has been to promote the origin of the wine and it's effect on it's character, the very definition of an AVA. To have a "specified percentage of the land mass involved in viticulture activities" could become a statistical and surveying nightmare (to say nothing of percent of wine grown because of vine density). A recent billboard in Napa Valley declared that "6% of Napa was planted to wine grapes". If only 6% of Napa is in wine grape production, then how does one measure the percentage of viticulture activity in other areas where vineyards are less common but the wine is still favorably receive because of the unique flavor due to its terroir? One possible outcome of requiring a "percentage" rule would be a proliferation of AVA petitions for single vineyards or very small areas in order to have a measurable percentage in "viticulture activity". This currently is covered by "designated vineyard" wine on the labels. The term "viticulture activity" is vague. Is "viticulture activity" limited to vineyards and wineries or does it also include grapevine nurseries, wine tasting rooms, shops selling wine and wine related mementos, restaurants that serve wine or any business that includes "wine, wine names (Pinot) or vintage" in it's title (i.e. Vintage Real Estate)? We know that the TTB agents who review AVA petitions spend a considerable amount of time and effort in the process and we realize that most government agencies must be accountable for their time and use of manpower. Perhaps the TTB could take a lesson from other government agencies that review applications from the public (Patent and Tradmark Office - PTO), which charges a FEE for each application and develop a FEE schedule. That FEE could be a flat rate or better yet how many hours required to review, edit and prepare a petition summary for publication in the Federal Register. As AVA authors, we are often asked by area growers, who want to learn the TTB process "how much does TTB charge to review a petition?". They all expect there to be a FEE. An AVA desgination on a wine label should help the vintner and the consumer identify a place of special character and know that it is based on science - not the number of growers or percentage of acres in a geographically unique area. Thank you for considering these issues. Sincerely, Ralph & Marie Carter