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April 7, 2008

New Labeling Laws Could Cause Havoc with Wine Brand Names

Calistoga_Cellars_Cabernet_Sauvignon_Duor4vDetail.pngProposed new labeling laws that do away with regional considerations are creating quite a problem for wine brand names.

For instance, one Swiss village is fighting for the right to use the name “Champagne” on its wines, despite the little known fact that the only real “Champagne” is made in the corresponding region in France, everything else is technically "sparkling wine."

Should the new laws go into effect, the significant equity behind regional names known even by the non-connoisseur, like “Champagne” or “Napa Valley” would be lost, as every brand of wine would have the right to label their "sparkling wine" as "Champagne." This would be catastrophic to the high end, traditional wines that we pay premium prices for.

Imagine trying to reposition a brand name like Moet or Dom Perignon versus a newer label by Lil Jon.”

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Posted by William Lozito at April 7, 2008 11:32 AM
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