A high school homework assignment I’ll never forget was the time we were asked to write a sonnet. Most people have written poetry in their lives — sometimes just for fun — but a sonnet is the kind of challenge that’s usually reserved for English class. The rhythm, line length, number of lines, and rhyming pattern must all obey strict rules. It’s a lot like designing a wine label...
The choice of grapes, the proportionate blending of wines, the marketer’s inspiration, and the artist’s vision all seek creative expression on the label. But like the writer of a sonnet, the designer of a label must find a way to uniquely convey his or her message while obeying a set of rules that make sonnets seem simple.
All labels are subject to not just one, but two levels of review. First, before it can be used, every label must obtain federal approval from TTB's Advertising, Labeling, and Formulation Division in Washington, D.C. The specialists there evaluate the text and other design elements for compliance with the label regulations of the FAA Act.
Fully one-third of all label applications are rejected at this stage. Why? Many labels are rejected because of mistakes on the application itself the label artwork is unclear or has handwritten changes; the trade name or bottler’s registry number was forgotten.
Many others are rejected because of technical mistakes. One of the most common is separating the appellation from the wine designation on a varietal label. Sometimes the label fails a more esoteric standard: for instance, a late harvest label that does not state sugar content at harvest and residual sugar. Then there are the more subjective decisions. Labels can be rejected if deemed to be offensive or misleading.
Even if your label passes muster in Washington, that doesn’t give you cart blanche to use it. For example, you may have obtained federal label approval on a label that says "estate bottled." But I you didn't comply with any one of the many production restrictions for estate bottling, the label is not legal even though it's approved!
The specialists in Washington have no way of knowing how you made the wine, or which wine you actually put in each bottle. The appropriateness of label for the wine inside the bottle can only be determined by TTB inspection the second level of label review, (0f course, not every label is reviewed by an inspector. Labels are randomly chosen for examination at product integrity audits conducted periodically at each winery.)
During a product integrity audit, the inspector will determine whether a particular bottle of wine is entitled to the claims made on its label. This is done by examining harvest and winemaking records, formulas if any, and the label approval file.
An easily avoidable "transgression" often found in product integrity audits is making a change on a label without reapplying for approval. There are several changes you are allowed to make without a new approval. For instance, you can change the specified alcohol content (within the same tax class) or the vintage year (if the approved label was vintage dated).
The back side of the certificate of label approval carries a list of allowable changes. Rearranging label elements, re-writing descriptive text, changing the appellation or varietal, and any other changes not listed on the back of the form require a new approval.
Satisfying both specialists and inspectors requires understanding of many regulations, policies, and procedures. Some of these found in Part 4, some in Part 24, some in Revenue Rulings, and some just haven't been published. Here for your ready reference is a summary of some of the important ones.