Petition for Johannisberg Riesling; Proposed Addition of Grape Variety Names for American Wines; Request for Additional Information for Other Proposed Grape Varieties (98R-406P)

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: [email protected]>.

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

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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

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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

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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