Gamay Beaujolais Wine Designation (92F-042P)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 4

[Notice No. 793; Ref. Notice Nos. 581 and 749]

RIN 1512-AB08

Gamay Beaujolais Wine Designation (92F-042P)

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of

the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms is proposing to

amend regulations to clarify use of the designation ``Gamay

Beaujolais'' on a wine label. In response to comments from consumers

and wine industry members, ATF is proposing that a wine which has been

designated with a varietal type designation in accordance with 27 CFR

4.23a, and which derives not less than 75 percent of its volume from

Pinot noir grapes or Napa Gamay grapes, may be further designated with

the optional term ``Gamay Beaujolais.'' When the optional designation

``Gamay Beaujolais'' appears on the brand label, it shall be in direct

conjunction with the required varietal type designation (Pinot noir or

Napa Gamay) and appellation of origin, in lettering of substantially

the same size and kind. ATF believes that this clarification of the

label designation ``Gamay Beaujolais'' will be informative to consumers

and industry in the marketing and purchasing of such wines.

DATES: Written comments must be received by July 5, 1994.

ADDRESSES: Send written comments to: Chief, Wine and Beer Branch,

Bureau of Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, DC

20091-0221, Attention Notice No. 793.

Copies of written comments received in response to this notice will

be available for inspection and copying during normal business hours

at: ATF Reading Room, Office of Public Affairs and Disclosure, 650

Massachusetts Avenue, NW, Washington, DC 20226.

FOR FURTHER INFORMATION CONTACT: Charles N. Bacon or James A. Hunt,

Wine and Beer Branch, Bureau of Alcohol, Tobacco and Firearms, 650

Massachusetts Avenue, NW, Washington, DC 20226, Telephone: 202-927-

8230.

SUPPLEMENTARY INFORMATION:

The Federal Alcohol Administration Act

Section 105(e) of the Federal Alcohol Administration Act (FAA Act),

27 U.S.C. 205(e), vests broad authority in the Director, ATF, as a

delegate of the Secretary of the Treasury, to prescribe regulations

intended to prevent deception of the consumer, and to provide the

consumer with adequate information as to the identity and quality of

the product.

Regulations which implement the provisions of section 105(e) as

they relate to wine are set forth in title 27, Code of Federal

Regulations, part 4 (27 CFR part 4). Section 4.23a provides that the

name of a single grape variety may be used as the type designation of a

grape wine if the wine is labeled with an appellation of origin, and if

not less than 75 percent of the wine is derived from grapes of that

variety, the entire 75 percent of which was grown in the labeled

appellation of origin area. Section 4.34(b)(1) provides that an

appellation of origin disclosing the true origin of the wine shall

appear in direct conjunction with and in lettering substantially as

conspicuous as the class and type designation if a grape type

(varietal) designation is used under the provisions of section 4.23a.

History of Gamay Beaujolais Name

For many years ATF has permitted the use of ``Gamay Beaujolais'' on

wine labels as a varietal designation. This resulted from the

identification in the 1940's, of a grape grown in Napa County,

California as the Gamay grape native to the Beaujolais region of

France. In the late 1960's, the University of California at Davis (UCD)

determined that the grape known as Napa Gamay was the true French Gamay

and that the Gamay Beaujolais vine was actually a clone of Pinot noir.

Since then, ATF has permitted wine produced from both the Napa Gamay

and Pinot noir grape varieties to be labeled as ``Gamay Beaujolais.''

The Foundation Plant Material Service (FPMS) at UCD (a service operated

in cooperation with UCD which makes virus free, true type plant

material available to the industry) also identified the Gamay

Beaujolais vine as a clonal selection of the Pinot noir variety. More

recently, UCD determined that the grape known as Napa Gamay is not the

Gamay grape of France. Napa Gamay has been positively identified by the

FPMS as Valdiguie, although it is not widely known by this name.

Winegrape Varietal Names Advisory Committee

In 1982, ATF established the Winegrape Varietal Names Advisory

Committee (referred to as the ``Committee'') to conduct an examination

of the hundreds of grape variety names and synonyms in use [47 FR

13623, March 31, 1982]. According to its charter, the Committee was to

advise the Director of the grape varieties and subvarieties which are

used in the production of wine, to recommend appropriate label

designations for these varieties, and to recommend guidelines for

approval of names suggested for new grape varieties. Their

recommendations were restricted to grape names used in producing

American wines. The Committee's final report, presented to the Director

in September 1984, contained the Committee's findings regarding use of

the most appropriate names for domestic winegrape varieties.

One finding which appeared in the l984 final report of the

Winegrape Varietal Names Advisory Committee was that the name ``Gamay

Beaujolais'' is not the name of any grape variety. However, the report

did recommend that the term be permitted for use during a five year

phase out period, for wine made either from the grape called Napa

Gamay, or from the Gamay Beaujolais clone of Pinot noir.

Notice No. 581

On the basis of the recommendations contained in the Committee's

final report, ATF issued Notice No. 581 on February 4, 1986 (51 FR

4392). This notice proposed the addition of Subpart J, American Grape

Variety Names to Part 4. ATF received 156 written comments in response

to this notice.

In respect to use of Gamay Beaujolais, Notice No. 581 proposed that

it should be permitted as an alternate grape variety name for future

use only for a period of five years. During the period of its continued

use, Notice No. 581 proposed that the actual name of the grape, either

Pinot noir or Napa Gamay, should appear on the label in direct

conjunction with the designation ``Gamay Beaujolais.'' After the

passage of five years, Gamay Beaujolais could no longer be used as a

label designation.

Comments to Notice No. 581

The proposal to phase out use of Gamay Beaujolais proved

controversial. Only three respondents concurred with ATF's proposal to

phase out use of Gamay Beaujolais noting that it is not the name of any

grape variety. Twenty-seven other respondents objected to the proposal.

The consensus among these respondents was that Gamay Beaujolais is well

known to consumers as a light red, young, fruity wine and that

consumers do not view it as a varietal wine. Several consumers

commented that consumer recognition of Gamay Beaujolais is good; that

the wine is popular; that consumers know what they are buying; and that

elimination of the designation would serve no consumer purpose. Winery

proprietors cited the large market for this wine and argued that

elimination of the designation would have a severe economic impact on

their business and also on grape growers.

Notice No. 749

Because the comments on Notice No. 581 varied widely in their

approach to the proposals, and because a lengthy period of time had

passed since the issuance of Notice No. 581, ATF decided to open the

issue of grape varietal names to additional public comment. Thus, on

September 3, 1992, ATF issued Notice No. 749 (57 FR 40380), seeking

comment on new and revised proposals relating to grape variety names.

In Notice No. 749, ATF proposed that Napa Gamay be considered a synonym

for the prime name Valdiguie and requested comments on whether Napa

Gamay should be phased out in the future. A resolution of the Napa

Gamay-Valdiguie issue will be in a forthcoming Treasury decision on

grape variety names.

Proposal

The evidence considered by ATF established that ``Gamay

Beaujolais'' is not a true varietal name, and that the two grape

varieties which have been called ``Gamay Beaujolais'' in this country

are not Gamay grapes. Therefore, ATF has concluded that Gamay

Beaujolais should not be listed in Subpart J of 27 CFR Part 4 as a

grape variety name. On the basis of the comments to Notice Nos. 581 and

749 and current trade and consumer recognition of the name, ATF instead

believes that Gamay Beaujolais is generally known as a type of red wine

which may be described as light and fruity. However, ATF believes that

many consumers associate the designation ``Gamay Beaujolais'' with a

wine produced from the Pinot noir or Napa Gamay grape varieties.

Therefore, instead of phasing out the use of the designation ``Gamay

Beaujolais'' as proposed by Notice No. 581, ATF is proposing to

specifically allow the continued use of Gamay Beaujolais under section

4.34.

Since only wines produced from the Pinot noir or Napa Gamay grape

varieties have been labeled as ``Gamay Beaujolais,'' ATF believes that

consumers now associate those two varieties with the designation

``Gamay Beaujolais.'' However, ATF believes that as part of its effort

to standardize the use of American varietal names, it should no longer

allow the unqualified use of the designation ``Gamay Beaujolais'' to

refer to two separate grape varieties, neither of which is a true Gamay

grape.

As previously discussed, existing regulations provide that a wine

is not entitled to a varietal type designation unless 75 percent of its

volume is derived from grapes of that variety. Accordingly, ATF is

proposing to allow the use of the designation ``Gamay Beaujolais'' only

where the wine derives not less than 75 percent of its volume from

Pinot noir grapes or Napa Gamay grapes. Wine which is labeled with the

designation ``Gamay Beaujolais'' must also state on the label a

varietal type designation (Pinot noir or Napa Gamay) and an appellation

of origin. Furthermore, the proposed amendment to section 4.34

specifies that the optional designation ``Gamay Beaujolais'' must

appear in direct conjunction with the varietal type designation and the

appellation of origin, and shall appear in lettering of substantially

the same size and kind.

ATF believes that the proposed amendment strikes a balance between

the views of the opposing commenters on this issue. On the one hand,

various consumers and winery proprietors have commented that consumer

recognition of the designation ``Gamay Beaujolais'' is good, and that

winery proprietors should not be forced to abandon its use. On the

other hand, it has been pointed out that ``Gamay Beaujolais'' is not an

accurate varietal designation, and the purpose of the varietal grape

regulations is to ensure that the consumer is not misled as to the

actual grape varieties used in the production of wine.

ATF believes that allowing the use of the optional designation

``Gamay Beaujolais'' in direct conjunction with the actual varietal

type designation (Pinot noir or Napa Gamay), as well as an appellation

of origin reflecting the true origin of the grapes, will not be

confusing or misleading to consumers. The proposed amendment will

authorize labels which clearly inform the consumer about the actual

grape variety used to make the wine, and the origin of the grapes,

while still allowing winery proprietors to use a label designation

which has gained widespread consumer recognition in this country.

Public Participation

ATF requests comments from all interested persons concerning the

proposed wine designation. 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 which a respondent considers to be confidential or

inappropriate for disclosure to the public should not be included in

the comments. The name of any person submitting a comment is not exempt

from disclosure.

Any interested person who desires an opportunity to comment orally

at a public hearing on the proposed regulation should submit his or her

request, in writing, to the Director within the 90-day comment period.

The Director, however, reserves the right to determine, in light of all

circumstances, whether a public hearing will be held.

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. This limitation is necessary to assure reasonable

access to the equipment. Comments sent by FAX in excess of three pages

will not be accepted. Receipt of FAX transmittals will not be

acknowledged. Facsimile transmitted comments will be treated as

originals.

Regulatory Flexibility Act

It is hereby certified that this proposal will not have a

significant economic impact on a substantial number of small entities.

This notice requests comments on a proposal to authorize the optional

use of the designation ``Gamay Beaujolais'' on a wine label. Since the

use of this designation is purely optional, this notice does not

propose any new labeling, reporting, or recordkeeping requirements on

winery proprietors. Therefore, the proposal will not have a significant

economic impact on a substantial number of small entities.

Accordingly, a regulatory flexibility analysis is not required

because the proposal, if promulgated as a 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 reporting, recordkeeping, or other

compliance burdens on a substantial number of small entities.

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.

Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of 1980, Pub. L. 96-

511, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR Part

1320--Controlling Paperwork Burdens on the Public, do not apply to this

notice because no requirement to collect information is proposed.

Drafting Information

The principal authors of this document are Charles N. Bacon and

James A. Hunt, Wine and Beer Branch, 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, it is proposed to amend 27 CFR part 4, Labeling and

Advertising of Wine, as follows:

Paragraph 1. The authority citation for part 4 continues to read as

follows:

Authority: 27 U.S.C. 205.

Par. 2. Section 4.34 is amended by adding paragraph headings to

paragraphs (a) and (b); removing the last three sentences of paragraph

(a); and by adding new paragraphs (c) and (d) to read as follows:

Sec. 4.34 Class and type.

(a) General. * * *

(b) Appellation of origin requirements. * * *

(c) Distinctive or fanciful names. If the class of wine is not

defined in subpart C, a truthful and adequate statement of composition

shall appear upon the brand label of the product in lieu of a class

designation. In addition to the mandatory designation for the wine,

there may be stated a distinctive or fanciful name, or a designation in

accordance with trade understanding. All parts of the designation of

the wine, whether mandatory or optional, shall be in direct conjunction

and in lettering substantially of the same size and kind.

(d) Gamay Beaujolais. A wine which derives not less than 75 percent

of its volume from Pinot noir grapes or Napa Gamay grapes may be

further designated ``Gamay Beaujolais.'' When the optional designation

``Gamay Beaujolais'' appears on the brand label, it shall be in direct

conjunction with a varietal type designation (Pinot noir or Napa Gamay)

and an appellation of origin, in lettering of substantially the same

size and kind.

Signed: December 29, 1993.

Daniel R. Black,

Acting Director.

Approved: February 14, 1994.

John P. Simpson,

Deputy Assistant Secretary (Regulatory, Tariff & Trade Enforcement).

[FR Doc. 94-8046-Filed 4-4-94; 8:45 am]

BILLING CODE 4810-31-U