Issue link: http://read.dmtmag.com/i/72545
By Michelle Locke A GrowinG ConCern The wine industry doesn't have a the grower," said John Aguirre, president of the California Asso- ciation of Winegrape Growers (CAWG). huge problem with wineries refus- ing to pay for delivered grapes. But if you happen to be among the handful of people who've been stiffed, the issue can loom large. "It's certainly a big problem for NEWS FLASH authority to require a winery to post a surety bond when an investiga- tion and administrative hearing has determined a winery owes past due amounts for delivered grapes. This expands current law allowing the MEB to require a winery to post a surety bond to ensure payment on future purchases if it has a history of failing to pay up. Wineries could also be liable to pay for the cost of investigations if found delinquent. The Wine Institute (WI), which represents California wineries, opposes the bill. In a statement, the group said that existing law pro- vides "more than adequate admin- istrative remedies and penalties" to address delinquent processors and protect growers. "The existing law works well CAWG's John Aguirre acknowledges that nonpayment by wineries can be a big issue for grapegrowers. That's why CAWG is support- ing a bill sponsored by Assembly Speaker Pro Tem Fiona Ma, D-San Francisco, aimed at bolstering grower protections. The bill, AB907, would allow the state Agriculture Department's Market Enforcement Branch (MEB), which handles these issues, to levy an administrative fine of up to $10,000 if a winery fails to pay a grower for delivered wine grapes or obstructs an MEB investigation. It would also allow for fines of up to $6,000 if a winery that is required to have a processor's license know- ingly fails to obtain one. To help ensure payment to grow- ers, AB907 further provides MEB WWW.VWM-ONLINE.COM for the vast majority of wine grape growers given the extremely limit- ed number of enforcement actions resulting from the tens of thou- sands of transactions annually in the $2.1 billion California winegrape market," WI's statement said. According to WI, the fines and penalties proposed in AB907 are unnecessary, and the organization calls provisions, such as the move to have wineries pay the cost of investigations in some circum- stances, "onerous." Aguirre said he hopes WI and other parties affected by the bill can work out an agreement on penalties, noting that the amounts specified are maximums and not necessarily what would be imposed. Aguirre sees the bill as an improvement on current law, which allows the MEB to suspend or revoke a winery's processor license for failure to pay for delivered grapes. That's an extreme measure that can put a winery out of busi- ness and doesn't really help the grower, Aguirre said. "Taking away a processor's license, suspension and revocation, are very blunt instruments and only operate obviously during specific times of the year in terms of hav- ing an effect," he said. "The expe- rience of growers that I've talked FTC Orders Advertising Data The Federal Trade Commission (FTC) is beginning its fourth major study on alcohol advertising and has requested 14 producers to provide advertising data to determine the effectiveness of voluntary industry guidelines for reducing advertising and marketing to underage audiences. For the first time, the agency will request information on Internet and digital marketing and data collection practices. Oregon Wine Newsroom Launches The Oregon Wine Board (OWB) has launched the Oregon Wine Newsroom (OWN), a feature of the Oregon Wine website that aims to aggregate, curate and organize daily content generated about the Oregon wine industry. View features or sign up to receive daily headlines via e-mail at http://news- room.oregonwine.org. Napa River Rutherford Restoration Receives $750,000 Grant The California State Water Resources Control Board has awarded Napa County a $750,000 Clean Water Act 319(h) Nonpoint Source grant to fund construction of the Napa River Ruth- erford Reach Restoration Project in Reach 8, on the Cakebread, Nickel & Nickel and Laird properties in Ruth- erford and Oakville. This funding will bring the Rutherford Reach Restora- tion Project to 70% completion by 2013. El Dorado Winery Association Launches Marketing Campaign The El Dorado Winery Association (EDWA) has launched a marketing effort to brand the California region, which represents 35 member wineries. The campaign will focus on increas- ing awareness by expanding brand recognition within the Lake Tahoe, Sacramento and San Francisco Bay Area metro markets. The EDWA's new tagline is "Taste at a Higher Level," referring to the region's high elevation. For more industry news briefs, visit the News Flash page on V&WM's website: www.vineyardwinerymanagement. com/magazine/web-exclusive1.asp JULY - AUG 2012 VINEYARD & WINERY MANAGEMENT 13