[Federal Register Volume 59, Number 65 (Tuesday, April 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8046-Filed]


[[Page Unknown]]

[Federal Register: April 5, 1994]


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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