[Federal Register: December 7, 2005 (Volume 70, Number 234)]
[Rules and Regulations]
[Page 72710-72713]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07de05-6]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[T.D. TTB-37; Notice No. 40; Ref: T.D. ATF-454]
RIN 1513-AA50
Santa Rita Hills Viticultural Area Name Abbreviation to Sta. Rita
Hills (2003R-091P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
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SUMMARY: This Treasury decision modifies the name of the existing
``Santa Rita Hills'' American viticultural area by abbreviating its
name to ``Sta. Rita Hills.'' We make this change to prevent possible
confusion between wines bearing the Santa Rita Hills appellation and
wines bearing the Santa Rita brand name used by a Chilean winery. The
size and boundary of the existing viticultural area will remain
unchanged. We designate viticultural areas to allow vintners to better
describe the origin of their wines and to allow consumers to better
identify wines they may purchase.
EFFECTIVE DATE: January 6, 2006.
FOR FURTHER INFORMATION CONTACT: Rita Butler, Alcohol and Tobacco Tax
and Trade Bureau, Regulations and Rulings Division, 1310 G St., NW.,
Washington, DC 20220; telephone 202-927-8210.
SUPPLEMENTARY INFORMATION:
Background on Viticultural Areas TTB Authority
Section 105(e) of the Federal Alcohol Administration Act (the FAA
Act, 27 U.S.C. 201 et seq.) requires that alcohol beverage labels
provide the consumer with adequate information regarding a product's
identity and prohibits the use of misleading information on those
labels. The FAA Act also authorizes the Secretary of the Treasury to
issue regulations to carry out its provisions. The Alcohol and Tobacco
Tax and Trade Bureau (TTB) administers these regulations.
Part 4 of the TTB regulations (27 CFR part 4) allows the
establishment of definitive American viticultural areas and the use of
their names as appellations of origin on wine labels and in wine
advertisements. Part 9 of the TTB regulations (27 CFR part 9) contains
the list of approved viticultural areas.
Definition
Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i))
defines a viticultural area for American wine as a delimited grape-
growing region distinguishable by geographical features, the boundaries
of which have been recognized and defined in part 9 of the regulations.
These designations allow vintners and consumers to attribute a given
quality, reputation, or other characteristic of a wine made from grapes
grown in an area to its geographic origin. The establishment of
viticultural areas allows vintners to describe more accurately the
origin of their wines to consumers and helps consumers to identify
wines they may purchase. Establishment of a viticultural area is
neither an approval nor an endorsement by TTB of the wine produced in
that area.
Requirements
Section 4.25(e)(2) of the TTB regulations outlines the procedure
for proposing an American viticultural area and provides that any
interested party
[[Page 72711]]
may petition TTB to establish a grape-growing region as a viticultural
area. Petitioners may use the same procedure to request changes
involving existing viticultural areas. Section 9.3(b) of the TTB
regulations requires the petition to include:
Evidence that the proposed viticultural area is locally
and/or nationally known by the name specified in the petition;
Historical or current evidence that supports setting the
boundary of the proposed viticultural area as the petition specifies;
Evidence relating to the geographical features, such as
climate, elevation, physical features, and soils, that distinguish the
proposed viticultural area from surrounding areas;
A description of the specific boundary of the proposed
viticultural area, based on features found on United States Geological
Survey (USGS) maps; and
A copy of the appropriate USGS map(s) with the proposed
viticultural area's boundary prominently marked.
Sta. Rita Hills Petition
General Background
TTB received a petition from a group of 11 viticulturists and
vintners in the established Santa Rita Hills viticultural area (27 CFR
9.162) in Santa Barbara County, California, proposing to abbreviate the
name of the viticultural area as ``Sta. Rita Hills.'' The petitioners
requested abbreviation of the name of the Santa Rita Hills viticultural
area as ``Sta. Rita Hills'' in order to prevent confusion between wine
bearing the ``Santa Rita Hills'' appellation and wines bearing the
``Santa Rita'' brand name. The petitioners do not believe such
confusion is likely, but want to accommodate the concerns of
Vi[ntilde]a Santa Rita, the Chilean producer of Santa Rita brand wines.
The petitioners believe it would be in the best interests of all
parties, including consumers in the United States and abroad, to use
the Sta. Rita Hills abbreviation for the viticultural area. Vi[ntilde]a
Santa Rita endorses this proposal.
According to the petitioners, abbreviating the viticultural area
name by using the abbreviation as suggested above would accommodate
Vi[ntilde]a Santa Rita's brand and trademark rights without
compromising the accuracy of the viticultural area's name. As discussed
more fully below:
The term ``Sta.'' is a recognized abbreviation for the
word ``Santa,'' as evidenced by standard dictionaries of abbreviations.
Of particular significance is the use of the abbreviation
``Sta.'' in the United States to refer to wines made from grapes grown
in such well-known appellations as Santa Barbara, Santa Barbara County,
the Santa Cruz Mountains, and the Santa Maria Valley.
Historic evidence demonstrates that ``Sta. Rita'' has been
used as an abbreviation for the ``Santa Rita Hills'' region. Such
evidence also shows the term ``Sta.'' was frequently used with other
California place names, such as Santa Barbara, Santa Clara, and Santa
Rosa.
The use of abbreviations in viticultural area names is not
uncommon; approved viticultural areas include names like ``Mt. Veeder''
(27 CFR 9.123), ``Mt. Harlan'' (27 CFR 9.131), ``St. Helena'' (27 CFR
9.149), and ``Isle St. George'' (27 CFR 9.51). The petitioners believe
the name ``Sta. Rita Hills'' fits comfortably within these precedents.
Background for Petition
The current petition notes that on March 31, 1998, a group of
viticulturists and vintners in Santa Barbara County, California,
petitioned the Bureau of Alcohol, Tobacco and Firearms (ATF, TTB's
predecessor agency) to establish the ``Santa Rita Hills'' viticultural
area in the western portion of the Santa Ynez Valley viticultural area.
ATF published a notice of proposed rulemaking in the Federal Register
on September 11, 1998 (see Notice No. 866, 63 FR 48658).
ATF received comments from 35 parties. Eleven parties, mostly Santa
Barbara County winemakers, grape growers, and public officials,
supported the proposed viticultural area. The remaining 24 parties were
opposed, not to the establishment of the viticultural area, but to its
proposed name.
Vi[ntilde]a Santa Rita, a publicly traded Chilean company that has
produced and sold wines under the brand name ``Santa Rita'' for more
than 120 years, led this opposition. Vi[ntilde]a Santa Rita commented
that recognition of the ``Santa Rita Hills'' viticultural area would
cause widespread consumer confusion and would damage Vi[ntilde]a Santa
Rita's vested trademark rights.
On May 31, 2001, ATF published a final rule in the Federal Register
approving Santa Rita Hills as an American viticultural area (see T.D.
ATF-454, 66 FR 29476). ATF concluded that the region was locally known
as the Santa Rita Hills and that it was geographically, viticulturally,
and climatically distinct from the surrounding Santa Ynez Valley
viticultural area.
ATF recognized the similarities between the Santa Rita trademark
and brand name and the Santa Rita Hills viticultural area, but
concluded that consumers would not be confused by wines bearing the
Santa Rita brand name and wines labeled with the Santa Rita Hills
viticultural area. ATF stated as follows in this regard:
The fact that imported products are required to state the words
``Imported by'' followed by the name and address of the party
responsible for importation world, in the case of a product with a
``Sta. Rita Hills appellation, signal to consumers that the product
is domestically produced rather than imported. The fact that
imported products are also required to state the words ``Product of
--------'' followed by the country of origin, further identifies the
origin of imported products to consumers, as distinct from domestic
products. Likewise, the fact that domestic products are required to
indicate the name and address of the bottler or packer, minimizes
the likelihood of confusion between a ``Sta. Rita Hills'' wine and a
product of Santa Rita in Chile or any other place.
The current petition states that Vi[ntilde]a Santa Rita and the
petitioners have since negotiated in good faith about the use of the
Santa Rita Hills viticultural area name. The petitioners, with the
agreement of Vi[ntilde]a Santa Rita, believe that abbreviating the name
``Santa Rita Hills'' to ``Sta. Rita Hills'' would be in the best
interest of everyone, including consumers in the United States and
abroad. Moreover, the requested modification will, by agreement,
obviate the need for further legal proceedings.
Avoiding Conflict With the Existing Santa Rita Brand Name
TTB regulations recognize that consumers can be confused when an
American viticultural area and a brand name contain the same or similar
terms but are used for different wines (see 27 CFR 4.39(i)). When
confronted with a proposed viticultural area name that is similar to an
existing brand or trademark, TTB solicits public comment for other
potential names that might avoid such a dilemma. Upon occasion, TTB has
modified the proposed viticultural area name to avoid conflict,
provided the modification could be justified under TTB regulations.
For example, in 1981, ATF considered recognizing a new AVA called
``The Pinnacles'' (46 FR 49601; Oct. 7, 1981). That brand name,
however, was already in use by a California winery. ATF thus determined
the proposed name was ``inappropriate'' due to ``trademark claims by
another winery and the possibility of consumer confusion that would
result if the proposed name were approved'' (see 47 FR 25517; June 14,
1982). After soliciting alternative proposals, ATF recognized the
[[Page 72712]]
viticultural area under the name ``Chalone'' (27 CFR 9.24).
Similarly, in 1992, ATF proposed establishing the Spring Mountain
viticultural area (58 FR 8726; February 17, 1993). Spring Mountain
Vineyards protested, claiming that its brand name, ``Spring Mountain,''
would be ``rendered worthless'' by establishment of a viticultural area
of the same name. At Spring Mountain Vineyards' suggestion, the
petitioners amended their petition to request the name ``Spring
Mountain District'', which was approved (27 CFR 9.143).
More recently, ATF considered recognizing the Diamond Mountain
viticultural area (66 FR 29695; June 1, 2001). Diamond Mountain
Vineyards objected, claiming the name would cause consumer confusion
and conflict with its trademark right in the ``Diamond Mountain
Vineyards'' brand. ATF agreed, noting consumers might confuse wines
labeled with the Diamond Mountain viticultural area name with wines
bearing the brand name ``Diamond Mountain Vineyards.'' Sufficient name
evidence was provided for recognition of the ``Diamond Mountain
District'' name and, therefore, ATF approved the viticultural area
under this alternative name (see 27 CFR 9.166).
The current petition states that the requested modification to the
viticultural area's name is intended to reconcile various interests in
the ``Santa Rita'' name. The petition contends that modifying the
viticultural area's name to feature the abbreviation ``Sta.'' would
reduce the potential for consumer confusion. The petitioners feel that
abbreviating the viticultural area's name would be consistent with
TTB's policy of minimizing, when possible, the potential for consumer
confusion between existing brand names and newly created viticultural
areas.
Name Evidence for Sta. Rita Hills
Below, we discuss the evidence provided in the petition showing
that ``Sta. Rita Hills'' is an appropriate name for the Santa Rita
Hills viticultural area. According to the petition, ``Sta. Rita Hills''
is equally accurate and appropriate name for the area, since the term
``Sta.'' is a well-recognized abbreviation for ``Santa.'' This
abbreviation is confirmed by authoritative sources such as the ``Gale
Press Abbreviations Dictionary'' and ``The Oxford Dictionary of
Abbreviations.'' The petition included copies of these sources. Based
on this, the petitioners state that the terms ``Santa Rita Hills'' and
``Sta. Rita Hills'' are functionally identical.
The abbreviation ``Sta.'' has been used in reference to the Santa
Rita Hills region, as well as other California regions, for over a
century, according to the petition. The petition included copies of
historic dise[ntilde]os, or sketches, that were presented, along with
land grant petitions, to the governors of Mexican California. There
were no official surveyors in the region at that time; therefore, each
dise[ntilde]o graphically defined the tract of land solicited. On these
dise[ntilde]os, the term ``Sta. Rita'' was used to describe ``Santa
Rita.'' Likewise, ``Sta. Clara'' denotes ``Santa Clara,'' ``Sta. Rosa''
denotes ``Santa Rosa,'' and ``Sta. Izabel'' denotes ``Santa Izabel.''
According to the petition, the ``Sta.'' abbreviation continues to
be used throughout the United States today, especially in connection
with California wines. The Wine Enthusiast's Web site advertises a
``wine boot camp'' in ``Sta. Barbara Cty,'' and the term ``Sta.
Barbara'' is used in wine reviews (see http://www.dooyou.co.uk/
product/141787.html--visited on August 19, 2002). Top restaurants and
retailers from around the United States use the terms ``Sta. Barbara,''
``Sta. Cruz Mountains,'' and ``Sta. Maria Valley'' as appellations for
fine wines (references: http://www.renaissancehollywood.com/ docs/twistwine.pdf; http://www.ambrosiaonhuntington.com/html/ wines.html;
/A> wines.html;
http://www.circa1886.com/cabernet_ sauvignon--circa-- restaurant--charleston.asp? subject=circa1886; http://www.northsidewine.com/level3/
level3/
us--west.htm; http://www.hotelastor.com/wine.htm; http://www.capitalraleigh.com/dining/ wine--list.htm; and http://
http://www.villacreek.com/pages/ winelist.html--all visited on October 11,
2002). Babcock Winery & Vineyards uses the abbreviation ``Sta.
Barbara'' on its distributors list (http://www.babcockwinery.com/
distributionlist.html--visited on October 11, 2002).
Internet searches reveal many additional uses of the abbreviation
``Sta.'' with California place names. A tourism page promoting Santa
Barbara County uses the abbreviation ``Sta. Barbara'' for addresses
within the city (http://www.maintour.com/ socal/stabarb.html--visited on October 11, 2002). Ship schedules refer to ``Sta. Barbara'' (http://
http://www.gso.uri.edu/unols/ schedules/ Sproul/Sproul99.html--visited on
August 19, 2002), as do high school athletic calendars (http://www.ouhsd.k12.ca.us/sites/
cihs/handbook/ december.htm--visited on
October 11, 2002).
The term ``Sta. Rita'' is used as an abbreviation for ``Santa
Rita'' throughout the United States and in Spanish-speaking countries.
For example, a simple Internet search performed by a petitioner found a
University of Arizona faculty Web site that uses the term ``N. Sta.
Rita St.'' to refer to ``North Santa Rita Street,'' located in Tucson,
Arizona (http://www.bened.arizona.edu/ ransdell/english-- 102--
108.htm--visited on August 19, 2002). Another Web site concerning
husbandry and breeding of reptiles and amphibians abbreviates the
``Santa Rita Mountains,'' a range in Arizona, as ``Sta. Rita Mts.''
(http://www.herper.com/MantidNA3.html, and http://www.herper.com?
PhasmidNA2.html--both visited on August 19, 2002).
The petition states that use of the ``Sta.'' abbreviation is
consistent with practices of the United States Board on Geographic
Names, the body responsible for standardizing geographic names used by
the Federal Government and printed on Federal maps. The Board's
guidelines specify that the term ``Saint'' may be abbreviated ``St.''.
Particularly in regions where place names are derived from the Spanish
language, as in Southern California, abbreviating the term ``Santa,''
the Spanish feminine form of the English word ``Saint,'' as ``Sta.'' is
consistent with the Board's general approach to abbreviations.
Notice of Proposed Rulemaking and TTB Finding
TTB published a notice of proposed rulemaking, Notice No. 40, in
the Federal Register on April 29, 2005 (70 FR 22283), regarding the
modification of the Santa Rita Hills viticultural area by abbreviating
it as ``Sta. Rita Hills.'' In that notice, TTB requested comments by
June 28, 2005, from anyone interested. We received three supporting
comments, no opposing comments, and one unrelated comment.
After careful review, TTB finds that it is appropriate to modify
the name of the Santa Rita Hills viticultural area by using the
abbreviation ``Sta.'' in place of ``Santa.'' Therefore, under the
authority of the Federal Alcohol Administration Act and part 4 of our
regulations, we modify the ``Santa Rita Hills'' viticultural name to
read ``Sta. Rita Hills'' effective 30 days from this document's
publication date. Vi[ntilde]a Santa Rita will be able to obtain future
label approvals of its use of its ``Santa Rita'' brand name on wines
imported into the United States because it is distinguishable from
``Sta. Rita Hills.''
[[Page 72713]]
Impact on Current Wine Labels
General
Part 4 of the TTB regulations prohibits any label reference on a
wine that indicates or implies an origin other than the wine's true
place of origin. With the adoption of this modification of the name for
the Santa Rita Hills viticultural area, the abbreviated ``Sta. Rita
Hills'' name will be recognized as a name of viticultural significance.
Consequently, wine bottlers using ``Sta. Rita Hills'' in a brand name,
including a trademark, or in another label reference as to the origin
of the wine, will have to ensure that the product is eligible to use
the viticultural area's name as an appellation of origin. Accordingly,
the amended regulatory text set forth below in Sec. 9.162(a) specifies
that ``Sta. Rita Hills'' is a term of viticultural significance for
purposes of part 4 of the TTB regulations.
For a wine to be eligible to use as an appellation of origin the
name of a viticultural area specified in part 9 of the TTB regulations,
at least 85 percent of the grapes used to make the wine must have been
grown within the area represented by that name. If the wine is not
eligible to use the viticultural area name as an appellation of origin
and that name appears in the brand name, then the label is not in
compliance and the bottler must change the brand name and obtain
approval of a new label. Similarly, if the viticultural area name
appears in another reference on the label in a misleading manner, the
bottler would have to obtain approval of a new label. Accordingly, if a
new label or a previously approved label uses the name ``Sta. Rita
Hills'' for a wine that does not meet the 85 percent standard, the new
label will not be approved, and the previously approved label will be
subject to revocation.
Different rules apply if a wine has a brand name containing a
viticultural area name that was used as a brand name on a label
approved before July 7, 1986. See 27 CFR 4.39(i)(2) for details.
Use of the Name ``Santa Rita Hills''
Since July 30, 2001, the name of this viticultural area has been
expressed as ``Santa Rita Hills.'' After the effective date of this
final rule, we will approve wine labels showing ``Sta. Rita Hills,''
and not ``Santa Rita Hills,'' as the viticultural area appellation.
The final rule includes, under our authority pursuant to 27 CFR
13.72(a)(2), a transition period during which vintners may continue to
use approved labels that carry ``Santa Rita Hills'' as the name of the
viticultural area. However, one year after the effective date of that
final rule, certificates of label approval showing ``Santa Rita Hills''
as an appellation of origin will be revoked by operation of that final
rule (see 27 CFR 13.51). We have added a statement to this effect as a
new paragraph (d) in Sec. 9.162.
Regulatory Flexibility Act
We certify that this regulation will not have a significant
economic impact on a substantial number of small entities. This
regulation imposes no new reporting, recordkeeping, or other
administrative requirement. Any benefit derived from the use of a
viticultural area name is the result of a proprietor's efforts and
consumer acceptance of wines from that area. Therefore, no regulatory
flexibility analysis is required.
Executive Order 12866
This rule is not a significant regulatory action as defined by
Executive Order 12866 (58 FR 51735). Therefore, it requires no
regulatory assessment.
Drafting Information
Rita Butler of the Regulations and Rulings Division drafted this
document.
List of Subjects in 27 CFR Part 9
Wine.
The Regulatory Amendment
0
For the reasons discussed in the preamble, we amend title 27, chapter
1, part 9, Code of Federal Regulations, as follows:
PART 9--AMERICAN VITICULTURAL AREAS
0
1. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
Subpart C--Approved American Viticultural Areas
0
2. In subpart C, amend Sec. 9.162 by revising the section heading,
revising paragraph (a) and the introductory text of paragraphs (b) and
(c), and adding a new paragraph (d), to read as follows:
Sec. 9.162 Sta. Rita Hills.
(a) Name. The name of the viticultural area described in this
section is ``Sta. Rita Hills''. For purposes of part 4 of this chapter,
``Sta. Rita Hills'' is a term of viticultural significance.
(b) Approved Maps. The appropriate maps for determining the
boundary of the Sta. Rita Hills viticultural area are five United
States Geological Survey (USGS) 7.5 Minute Series maps titled:
* * * * *
(c) Boundary. The Sta. Rita Hills viticultural area is located in
Santa Barbara County, California. The boundary is as follows:
* * * * *
(d) From July 30, 2001, until January 5, 2006, this viticultural
area was named ``Santa Rita Hills''. Effective January 6, 2006, the
name of this viticultural area is ``Sta. Rita Hills''. Existing
certificates of label approval showing ``Santa Rita Hills'' as the
appellation of origin are revoked by operation of this regulation on
January 6, 2007.
Signed: August 25, 2005.
John J. Manfreda,
Administrator.
Approved: November 3, 2005.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 05-23682 Filed 12-6-05; 8:45 am]
BILLING CODE 4810-31-P