Chianti
Communications
“Uncorking the Wine Label
Controversy”
Jennifer Busch
Amanda Hand
Sarah Pankratz
Leslie Schroeder
Molly Soberg
Cases in PR & Corporate Communications
COMN PRO 480
Dr. Phil Clampitt
03/23/04
Table of Contents
Executive Summary………………………………………………………3
Introduction…………………………………………………………….….3
Stated vs. Unstated Problem………………………………………………4
2
Assumptions……………………………………………………………… 5
Contextual Analysis……………………………………………………….6
Audience Analysis ………………………………………………………...10
Survey Results…………………………………………………………….17
Strategy…………………………………………………………………....18
Goals……………………………………………………………………………………. 18
Tactics…………………………………………………………………….19
Rationale………………………………………………………………………………...19
So What?……………………………………………………………………………….. 19
Measuring Effectiveness………………………………………………………………19
Rules of Thumb…………………………………………………………...24
Recommendations/Feedback……………………………………………...26
Conclusion………………………………………………………………...27
Bibliography………………………………………………………………28
Appendices……………………………………………………………….. 29
Executive Summary
After analyzing this case, our group proposes a strategy and tactics that will delegitimize the importance of nutritional contents labels being placed on wine. Once we
analyzed the stated problem and discovered the unstated problem, we were able to
consider several grounded assumptions that were necessary to make in order to move
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forward with this case. With a thorough contextual analysis of the issue, we had the
chance to better formulate a strategy, goals, and tactics that would be deemed effective.
From that, a thorough audience analysis of every public involved was conducted and we
were able to identify how to best deliver our strategy and tactics effectively and
efficiently to each public. A breakdown and interpretation of the survey results also
helped in creating our strategy and tactics. We concluded our analysis by providing
rationale for our tactics and ways in which the effectiveness of our tactics could be
measured. Finally, the creation of the rules of thumb we followed throughout this case
and the feedback we received during the presentation brings our case analysis to an end.
All of the abovementioned concepts were integral in developing our strategy and tactics
for this case and helped in creating a plan that is feasible for the Wine Market Council to
put into action.
Introduction
Ernest Hemingway once said, “In Europe, we thought of wine as something as
healthy and normal as food and also a great giver of happiness and well-being and
delight,”(www.wineloverspage.com). Wine is a prestigious process that is to be enjoyed.
This art form starts at the growing of the grapes, continues during the fermentation
process, and ends with a visit to a wine-tasting and learning the techniques of how to
enjoy a glass of wine from smelling the bouquet, seeing the colors glide together, and
tasting the perhaps oaky finish. Wine is one of the oldest alcoholic beverages in the
world and to this day the elegance of wine is enjoyed by most. The problem we face is to
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create a strategy that will keep this time-honored art form alive, without ruining it’s
prestige and essence that the world has grown to love.
Stated Problem vs. Unstated Problem
The U.S. Government is considering requiring nutritional labels on wine like they
do on other products. The Wine Market Council has hired our group, Chianti
Communications to help them resist this movement. Our job is to create a public
relations strategy and tactics to address this concern.
In steps to preparing strategy for this problem, we had to look at other
circumstances, not just the stated problem. We discovered several unstated problems.
Our group came up with three unstated problems that needed to be assessed and dealt
with before constructing our strategy and tactics. The first unstated problem is that there
is a lack of education among consumers about the nutritional content of wine. This
problem needed to be recognized due to the recent surge in diet fads. Consumers are now
even more interested in what the nutritional contents are in the products they are buying
and consuming. We realize that they need to be educated on what they are consuming.
The second underlying problem our group needed to look into goes along with the lack of
education among consumers. We came to the conclusion that more educational outlets
concerning the nutritional contents need to be implemented. Since there is such a lack of
education among consumers, there needs to be more outlets where information can be
readily available for those who inquire. The last unstated problem our group assessed is
that there is a need to maintain the prestigious and sophisticated tradition of wine as an
art form. It is not just a run of the mill product. The public needs to know that wine is
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not simply a mass-produced item, rather it is a time honored tradition that needs to be
held with such esteem. A lot of work goes into the making of each bottle and that needs
to be addressed.
Assumptions
After assessing the stated and unstated problems of this case, we discovered
several assumptions that were imperative to make in order to form our strategy and
tactics. This first assumption we arrived at was that the problem in general is difficult to
address due to recent diet fads. We realize that lately it seems that diet awareness has
boomed and that this fact needs to be taken into consideration. We are assuming that
since people are now looking for nutritional information, outlets will need to be set up
where this information can be obtained. The next assumption we came to was that the
general public isn’t currently educated on the nutritional facts of wine. This goes back to
our unstated problem. We realize that the general public doesn’t really know that much
about the nutritional content of certain products, wine in particular. Again, we are
assuming that those who are looking for information will need the necessary outlets to
find it. Continuing on, we assume that the government wants to label all types of wine.
This is where a potential problem exists. If the government wants to label all imported,
exported and vintage wine, there could be extreme costs. Being that every bottle of wine
is different, labeling would have to vary a great deal. Every year new labels would need
to be created since it is never the same from one year to the next. We also assume that
wine is considered an art form rather than a mass-produced item. When people drink
wine they feel a type of sophistication. A lot of time and prestige is put into the art of
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making wine. There is not one universal recipe for each bottle. Wine is art, not like a
box of cereal that is made of the same ingredients batch after batch. This leads into our
last assumption, that wine is a time-honored tradition. Companies take extreme honor in
what type of wine they produce, as well as the time-honored process that takes place to
arrive at the finished product. We can not look at it as an assembly line, but rather an
intricate process that is handed down from generation to generation.
Contextual Analysis
What is wine?
In order to accurately devise our strategy and tactics, one of our first steps was to
conduct background research of the primary elements of our case, beginning with the
discussion of wine itself. “Wine is an alcoholic beverage made by the fermentation of the
juice of the grape. It is so ancient that its origin is unknown; wine is mentioned in early
Egyptian inscriptions and in the literature of many different lands. The term wine is also
applied to alcoholic beverages made from plants other than the grape, e.g., elderberry
wine, dandelion wine.” (www.historychannel.com)
There are also many different kinds of wine. “Wines are distinguished by color,
flavor, bouquet or aroma, and alcoholic content. Wine is also divided into three main
types: still or natural, fortified, and sparkling. Wines are red, white, or rose (depending on
the grape used and the amount of time the skins have been left to ferment in the juice).
For red wines the entire crushed grape is utilized; for white wines, the juice only. In rose
wines, the skins are removed after fermentation has begun, thus producing a light pink
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color. Wines are also classified as dry or sweet, according to whether the grape sugar is
allowed to ferment completely into alcohol (dry), or whether some residual sugar has
been left (sweet).” (www.historychannel.com)
There are also significant studies that suggest that the consumption of wine is
beneficial to your health. The “highly publicized studies of the French, particularly in
Lyons, claim that a moderate consumption of red wine might help reduce the risk of
cardiovascular disease. Such findings were judged worthy of further investigation by the
American Medical Association.” (www.historychannel.com)
Who is the Wine Market Council? What do they do?
As previously stated, we have been hired by the Wine Market Council. The Wine
Market council is an, “independent, non-profit, trade association that works to grow the
consumer base of the U.S. wine market for the benefit of the industry as a whole.” More
specifically, the Wine Market council conducts market research, produces advertising,
and sponsors grass roots promotions such as wine tasting and other merchandising
programs. (www.winemarketcouncil.com)
Who is the ATF? What do they do?
As discussed in our stated problem, the U.S. government is considering requiring
nutritional labels on wine. In our preliminary research we discovered that wine is not
regulated by the Food and Drug Administration, but instead by the Bureau of Alcohol,
Tobacco, and Firearms (ATF). The ATF is a “multi-mission treasury bureau responsible
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for carrying out compliance and law enforcement duties in alcohol, tobacco, firearms,
and explosives.” More specifically the ATF:
o
Approves labels and monitors advertising
o
Regulates labeling, marking, packaging, and branding of all distilled
spirits, wine and beer sold in the United States
o
Regulates production in the United States and the importation of all
alcohol beverages, including distilled spirits, malt beverages, and wine
o
Ensures to the best of its ability that an alcohol beverage label accurately
reflects the contents in the container
o
Approves the designation of viticultural areas
o
Checks alcohol beverages for compliance with Food and Drug
Administration (FDA) decisions concerning food additives and colorings
(www.atf.gov)
As part of our contextual analysis we decided to investigate what is currently
required by the ATF to appear on a wine label. What we found were documents upon
documents that were quite detailed in regards to specific regulations on the labeling of
wine. The following describes what is most often provided on a wine label (Appendix A).
o
Brand – the brand name used by the bottler to identify the product.
o
Vintage Date – this date indicates that 95 percent or more of the wine is
produced from grapes grown in that year
o
Appellation of Origin – the place in which the dominant grapes used in
the wine are grown.
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o
Viticultural Area – the defined grape-growing region with soil, climate,
history and geographic features which set it apart from the surrounding
areas
o
Net Contents – sated in the metric of the measure and the amount of
product in the container
o
Varietal designations – the names of the dominant grapes used in the
wine
o
Estate bottled – reflects that 100 percent of the wine came from grapes
grown on land owned or controlled by the winery, which must be located
in the viticultural area
o
Name and Address – the name or trade name and address(es) of the
bottler or importer
o
Country of Origin – the country from which it came from
o
Alcohol content – the statement of alcohol in percent by volume
o
Declaration of sulfites – statement of 10 or more parts per million (ppm)
sulfur dioxide
o
Health Warning Statement – listed on all beverages containing .5% or
more alcohol by volume and must include “Government Warning” in
capital letters and bold type (www.atf.gov)
There is also additional information that is often included on the label so the consumer
can make and educated purchase decision. The manufacturer often provides wine makers
notes, tasting information, advertising, and the UPC Code (www.wineloverspage.com).
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Considering all the information that is provided on the wine label we ask
ourselves, “Is there an inherent problem with the current labeling practices?” What we
found was that the last formal proposed rule making was August 10, 1993 – February 7,
1994. The ATF published an advanced notice of the proposed rulemaking, which also
solicited comments from the public and the industry. “The ATF received 55 comments in
response to the advance notice. Only 7 of these comments came from consumers.
However, 5 of the 7 consumers who commented opposed nutrition labeling. Overall, 80
percent of the comment received, opposed nutrition labeling for alcoholic beverages.
Thirty-five of the comments opposing nutrition labeling were submitted on behalf of the
industry, both domestic and foreign. After careful consideration of the petition and the
comments received in response to the advance notice, the ATF determined that an
amendment of the regulation to provide nutrition information on labels of alcohol
beverages is unnecessary and unwarranted” (www.atf.gov).
Audience Analysis
When analyzing this case, we discovered seven different audiences that we will
be communicating with. They are the Wine Market Counsel, the ATF (Bureau of
Alcohol, Tobacco, Firearms, and Explosives), current and potential wine consumers,
wine producers, wine retailers, and the media. The first four of these seven publics are
part of our primary audiences. To properly build an effective strategy, it is necessary to
analyze each of these audiences separately (Appendix B). It is important to discover how
to communicate to these audiences, how we can affect them, and in turn, how they can
effect our campaign.
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The Wine Market Counsel (WMC) is the first of our primary audiences. Since we
have been hired by them to lead this campaign against labeling, it is very important to
learn how to properly communicate with them. It is also necessary to learn the main goals
and objectives of this group so we can implement them into our own strategic planning.
Through our research, we have discovered that the counsel is currently implementing a
nation-wide campaign. Through this campaign, the WMC wants to make wine a more
widely accepted part of American culture. They would like wine to become as popular
and widespread as beer and other common hard liquors. When arguing against the
labeling of wine bottles for the WMC, we must keep this goal in mind. We need to not
only focus on the labeling issues, but help in the campaign of widespread awareness and
acceptance. The current advertising campaign of the WMC is titled, “Wine. Since 6000
B.C.” This theme communicates the authenticity and enduring relevance of wine as an
enjoyable part of casual, everyday life. The counsel realizes the importance of the history
of wine and wants to continue this long history far into the future. In helping the WMC
oppose the labeling of wine bottles, we must also focus on continuing this time-honored
tradition. Through our research, we have visited the WMC’s sister website,
www.wineanswers.com. This is an interactive website where consumers can ask any
questions about wine that they may have. The WMC provides feedback to these questions
and in turn learns about what consumers want to know. Because of this website, we can
infer that the WMC holds much value in their public’s questions, concerns, and opinions.
Since the counsel holds this feed-back system in such high value, we must include such a
system in our campaign. Finally, the Wine Market Counsel is strongly opposing the
nutritional labeling of wine. They want to preserve the essence and prestige linked with
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wine consumption. There is a unique essence in the presentation of wine, as seen in the
service of wine. Wine is presented and served in a series of artistic steps as opposed to
simply popping open a beer can. The wine labels are also artistically designed to appeal
to the senses. This presentation is very important to the WMC. We know that our
campaign must comply with this and address wine as an art form rather than simply a
manufactured product.
The next primary audience we have analyzed is the ATF, which holds the ultimate
power of our entire case. We need to deter the ATF from requiring the labeling of wine.
In order to do this, we must understand the organization and what they stand for. Being a
federal agency, the members of the ATF are concerned with making rules and
regulations. These members have a regulatory framework of thinking and use their leftbrains, as opposed to the right-brain thinkers of the WMC. In a Meyer’s Brigg’s profile,
they are more than likely INTJ’s. They want details, straight forward answers, and charts
and figures. When we communicate with them, we must adhere to these qualities and
stick to logistics. One of the ATF’s objectives is to make sure the consumer receives a
product that is safe, legal, and properly described. The ATF is consumer oriented in that
its entire job is to protect the public from any harmful contents in a product and also any
deceiving or wrongdoing by a manufacturer. When developing our strategic plan, we
must keep the ATF’s concerns for the public in mind and implement our plan
accordingly. We must adapt these concerns and include them into our plan. We also must
be able to provide the proper descriptions of wine through our tactical plans. Lastly, the
ATF strongly proposes the nutritional labeling of wine. The ATF places great importance
on the education of the public. They stress the public’s constitutional right to know what
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is in the products they are consuming. To gather support from the ATF to not implement
the labeling regulations, it is important for us to take their place in the education process.
We must educate the public on the exact contents and facts that the ATF would have in
their labeling regulations.
Our third primary audience is current wine drinkers. This audience is important
because in taking the ATF’s place in educating the publics, we must know how to
properly communicate with this group. We must know how to educate them and what, in
turn; their education can do for our campaign. Because these nutritional labels have never
been used before, we know that these consumers have never seen the nutritional contents
of wine on the bottles. They do not know the nutritional value of the contents. They do
not know how many calories, carbohydrates, vitamins, etc., are in each glass or bottle of
the wine they currently consume. In our campaign, we must educate the current wine
drinkers in other unique tactical plans. Due to society’s current health crazes, large
groups of today’s consumers are on diets. Two very popular diets are the Atkins low-carb
diet and the ever-present calorie counting diet. Consumers who are on these diet plans
need to know how many carbohydrates or calories are in each glass of wine. These
health-crazed dieters often will not consume a product if it has too many carbs or too
many calories. They also will not purchase the wine if they do not know the contents.
Through our campaign, we must create other outlets in which these groups can find this
information. These current wine consumers have been drinking wine without nutritional
labels for thousands of years. There have not been many, if any, complaints by these
wine-drinkers to place these labels on wine bottles. This shows that these consumers do
not see a need for these labels. If they are not demanding it, they do not feel strongly
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about wanting it. We can use this issue, or lack there of, in support of building our
opposition to the labeling regulations proposed by the ATF. We can provide this
information to the ATF and describe to them the lack of consumer need.
Our last primary audience is potential wine consumers. This audience, who does
not currently drink wine, is important to our strategic planning in that we must include
them to fulfill the WMC’s goal of spreading awareness and acceptance. To spread this
awareness beyond current wine drinkers, we must learn how to effectively communicate
with and educate the potential wine consumer audience. Because these potential
consumers do not currently drink wine, we can infer that they prefer another beverage.
Because most people become “stuck” in a regulatory way of consuming, it is more than
likely that this group has either never tried wine, or has only tried one or two types. To
reach this group, we must create outlets to try, taste, and learn more about wine. Through
this, these consumers will become more aware and thus become more likely to accept
wine as a part of their culture. Like any consumer, these potential wine-drinkers have
never seen nutritional labels on wine. They also do not know the nutritional contents such
as vitamins, calories, sulfates, etc. As with the current consumers, we need to educate this
group on the contents of wine. A large group of this public is also part of the popular
health craze, participating in the Atkins and low-calorie diets. Again, they need to know
the amount of carbohydrates and calories that reside in these bottles of wine. This group
needs to be educated about the nutritional aspects and also the dietary advantages wine
has over other alcoholic beverages.
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One of our secondary audiences includes wine producers. This audience is
important to address, as they will be affected greatly by any regulations set by the ATF. If
nutritional labeling were to be enforced, these producers would have to change their ways
of manufacturing, such as, designing new labels, producing new labels, and measuring
and analyzing the contents of each batch of wine. These wine manufacturers produce and
distribute wine on a regular basis, therefore, they know the basic contents of their wine.
These producers are a great source for the Wine Market Counsel to gather the nutritional
information to educate the public. These new labeling practices will cost the wine
producers more money. They will have to pay for new and more extensive labels for their
bottles. This group will also lose time, as it will take more of it to measure the contents of
each batch of wine. Because time is money, this is an additional loss to the producers. As
with any organization or business, they do not want to pay more money for something
they do not find valuable. We must educate these producers of the possible profit loss and
use their opposition to strengthen ours. Most wine manufacturers were not pleased when
forced to apply the current labeling regulations on wine bottles today. They strongly
opposed the Surgeon General’s Warning required by the ATF. This shows that this group
does not like restrictions or regulations. They view their wine as art and do not want an
outside source to destroy the essence. We can also use this opposition to strengthen our
case to the ATF.
Another secondary audience is retailers, restaurants, and bars. This group sells
wine to current wine drinkers. In our campaign, we need their help in the WMC’s goal of
spreading awareness and acceptance of wine. We need them to help us promote wine and
encourage potential drinkers to purchase it and incorporate it into their culture. Like
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consumers, this group of retailers has never seen nutritional labels on wine bottles;
therefore, they do not know the contents. Our campaign needs to educate them on the
contents and give them the information and outlets necessary to educate their customers.
We can use this audience as another way of educating our consumer publics. Their
customers can ask questions at liquor stores and bars and get immediate feedback without
having to do extensive research. Our strategic tactics can also increase this group’s sales.
Since our campaign will be focusing not only on opposing labeling practices, but
spreading the wide acceptance of wine as well, their wine sales will increase with the
heightened awareness we will create. Because of this, they will be pleased to become a
part of our campaign. With their participation, awareness will increase even more as will
their profits.
The final audience is the media. We will be communicating to the media to help
in our campaign of labeling opposition, awareness, and acceptance. The more the media
is involved with our campaign, the more aware the public will be of our issues. Currently,
the media is not publicizing our debate with the ATF. They are a latent public because
they are not yet aware of the issue, as they do not know the facts. They may also not
think that this issue is newsworthy. We need to educate the many media outlets on these
facts and why it is interesting and important to the public. It is important to gain the
media’s attention because they will have a great impact. The general public and
consumers often view the media as opinion leaders, and hold great value in what they
report. To gain awareness, we need to build a coalition with the many media outlets by
alluring involvement posed by press releases, query letters, and story idea memos. This
will create a relationship with the media, who in turn will promote our issues. We must
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also keep in mind that the media can be biased. It is extremely common for media
sources to take sides on issues and to promote the side they think is correct. It is
important to realize that the media could easily side with the ATF and through their
coverage, gain public support for the regulation. Through our strategy, we must be
proactive rather than reactive. We need to tell the media our side of the issue first, and
also gain support from popular media sources.
Survey Results
In addition to our audience analysis, we conducted a survey of 100 people from
the general public regarding their opinion of nutritional labeling on wine. The
participants of the surveys were between the ages of 21 and 70 years old. The surveys
were given at many different places including school, offices, restaurants, and lounges.
The survey consists of open-ended and close-ended questions that gave us both
quantitative and qualitative results (Appendix C).
When the participants were asked, “Do you think wine should have a nutritional
facts label?” 72% said no and 28% said yes. Of those who answered no, nutritional facts
labels should not be required on wine, the most common reason was, “wine is to be
enjoyed” (Appendix D). Of those who answered yes, nutritional facts labels should be
required on wine, the most common reason was, “everything else has labels” (Appendix
D). From this comment we know that there is a lack of education simply due to this trend
in answers. This uneducated answer was the most common for those who agree with the
wine labels and our strategy and tactics will help to end this naivety. Of the 28% of
participants that said wine should have nutritional facts labels, an astounding 62% said
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they would not make a purchase decision based on the nutritional contents. So, even
though these participants feel it is important to have nutritional facts labels on the wine,
they would not necessarily read or pay attention to them.
Based on our survey results, the general public feels that there is not an inherent
need for nutritional facts labels on wine. The survey results were important to the
development of the appropriate strategy and tactics. Please see Appendix E for the
complete list of survey results.
Strategy and Goals
Based upon our contextual and audience analysis and the results of our surveys
we have developed a strategy to de-legitimize the proposal to require nutritional labels on
wine. We will do this by taking pre-emptive action to heighten awareness of the
nutritional aspects of wine and the available informational outlets. To do this we have
designed separate goals, business goals and communication goals.
Our first business goal is to develop more outlets for education about the
nutritional aspects of wine. Second, to encourage the responsible enjoyment of wine by
current and future generation of adults in the United States. We believe that through
education we can raise awareness that can lead to increased profits. Our first
communication goal is to establish the widespread acceptance of wine as a rewarding part
of American culture. Second, to educate the public about the nutritional contents of wine
without destroying the prestige of the tradition
Tactics, Rationale, So What, and Measuring Effectiveness
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Communication tactics are the observable and measurable element to any
strategic plan. After analyzing our audience and publics, we developed our strategy,
goals, and objectives. In order to effectively attain those goals, valuable tactics need to be
put into action. “The tactics should be considered in light of your goals and objectives,
evaluated in relationship to each other, matched to the taste of the organization and the
publics, and chosen with an eye toward time and budget constraints,” (Smith, 153).
With all of those aspects in mind, we created an abundance of options for the
Wine Market Council and wineries to consider(Appendix F). In essence of our proactive
strategy, Chianti Communications focused on educating the public about the positive
effects and the timeless elegance that is associated with the beverage. In doing so, the
numerous and different tactics reach all of our publics and persuasively impact them
through interpersonal related tactics and promotional media for a heightened audience
reach.
We will look at our tactics, one by one, concentrating on the rationale behind
those decisions and what it means (So What?). A measurement of effectiveness is also
imperative to place the value of the tactics on a scale.
Convention
Chianti Communications will hold a convention for all members of the Wine
Market Council and members of the associated winery community. There are two main
goals related with this event. The first being to educate members about the current issue
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of nutrition labels, and secondly to inform them of the numerous tactical measures they
can take. This is a pro-active action strategy, which will form alliances and audience
participation through this special audience involvement convention. The Wine Market
Council is obviously our key, internal public and at this event they will have a chance for
interaction and a time to pose feedback. We will measure the effectiveness of this event
by encouraging members to have contact via email with questions, comments, and event
success stories. We will also hold focus groups sporadically and issue surveys. This will
also be way to gain qualitative and quantitative results in which to measure.
Webpage
This tactic is aimed at the general public to proactively educate the populace of
the benefits and facts of the nutritional content of wine. Many of our advertising venues
will have our web page printed on them. We will also issue napkins to some of our
vendors, such as restaurants and bars with chic napkins, with the website imprinted on the
reverse side. Many of the foils atop a bottle of wine will also be imprinted with the web
address. Within the website we will also draw attention to the issues surrounding the
Atkins craze, noting that wine can be included in that lifestyle. Consumers will also be
able to email a wine expert with any questions, comments, or concerns they have. This
electronic form of media has organizational roots, stemming back to a benefit statement.
Benefit statements of the organization will be stated on the website to illustrate how
advantageous the product is to the general public. Measurement of effectiveness will
come from the apparent hits on the website and also by feedback created by the emails. A
third means of measuring effectiveness will arrive through the evaluation of awareness
objectives. This method focuses on the content of the message. In relation to message
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exposure, content, readability, and message recall, we can verify how effective the web
page is.
Commercials
This third tactical measure is that of the especially popular commercial. As most
of America is aimed at the television industry, this will be money well spent. Promoting
the positive and prestigious effects of wine is very relevant to our campaign. Chianti
Communication decided it would be a great proposal to feature a celebrity, or celebrities
in the commercials, similar to the MILK campaign that became so very trendy several
years ago. Celebrities we would like to use would be personalities such as the cast of Will
and Grace. This strategic tactical strategy involves that of a controlled media, external to
the organization, with a capable access to large audiences. The largest measurement of
effectiveness will derive from a visible profit increase at various wineries and vendors,
such as liquor stores.
Advertisements
In targeting the diet-crazers, such as those on the Atkins diet, we will create
billboards, (Appendix G) and magazine and journal ads, to appear in publications such
as People, Travel, and Ladies Home Journal. This strategic plan is also that of an
externally, controlled media, seeing that the organization is allowed to control the content
of the message with access to large audiences. We could also pose the presumption that
this is a targeted media plan, to aim our advertising campaign at prominent, high-status
individuals. Effectiveness measurement will be visible in profit increases and through any
media tracking.
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Travel and Food Channel Specials
In contacting the Travel and Food Channels, we can promote the prestige and
culture that inherently surrounds wine. On the Travel Channel we can set up a visit to one
of our top wineries. This will include a visit to a certain estate, such as Beringer, located
in Napa Valley, and tour the facilities, as well as incorporate a meal and a stay in the onsite hotel and spa.
On the Food Channel, we can feature a chef, such as Emeril, to include us in an
upcoming show. By doing so, we can communicate that wine has a gourmet aspect, as
well as being an art form, as is cooking. This also can be beneficial in the aspect of
teaching consumers which wines enhance certain dishes.
Both of these tactics are conventional communication strategies, with capabilities
to reach the external public. It is also uncontrolled and will provide the credible
presentation on valuable messages to be delivered to a large audience, who can appreciate
the value of the product. Measurements of effectiveness will be quantitatively marked
from television ratings and from profit increases at the vendor and winery levels.
Waterford & Wine
Waterford Crystal has been a part of fine culture since it started in Ireland many
years ago. And wine has been a part of culture since, well ‘the beginning.’ Currently, the
Wine Market Council is actually basing their new advertisement, Wine, Since 6000 B.C.,
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on that aspect. We would like to team up the two timeless traditions to be showcased and
honored. Several Napa Valley wineries will be selected for a well-designed and
illustrious wine tasting event. At this internal event, we will have the control of the media
and the message presented, as well as it being a civic event for information exchange and
audience involvement. This exhibition will be a gathering for those who create wine and
crystal, and for those who enjoy it. Sales will be calculated that day for the winery and
Waterford, to estimate success. We can also measure effectiveness through visually
watching the interaction between the guests and vendors through customer satisfaction
and involvement. Both pre and post-tests can also be taken in a form of a survey to
measure the effectiveness of this display.
Meeting- ATF, FDA, & WMC
A meeting will be scheduled between the three divisions of the Alcohol,
Tobacco, and Firearms division in accordance with the Food and Drug Administration,
and the Wine Market Council. This meeting will feature representatives from each
division to discuss the current issue about labeling. We will invite the FDA to come as a
mediator position and to offer their pose and input on the issue.
At this point, all of the tactical measures we have discussed above will be put into
place. Therefore, we have proactively educated the public on the effects and nutritional
content of wine, thus de-legitimizing the need for the labeling process, which the ATF is
pushing for. This will be a positive information exchange for the various organizations to
meet to discuss their views, goals, and concerns. Measurement of effectiveness will come
from post surveys as well as how well each organization’s personal goals were obtained.
24
Through all of these tactics, we hope to ensure our business and communication
goals, as well as keeping our strategy in mind. We also hope to move the inherent risk
associated with wine from uncontrolled and observable, to controlled and observable.
This will be done through our abovementioned tactics and by communicating about the
relative benefits and hazards. This two-dimensional reaction will change through
educational outlets in which we have provided. This will lead to simplicity and certainty,
which is what each individual strives to reach.
Rules of Thumb
Knowledge doesn’t always lead to acceptance: Throughout our strategy and
tactics we have relied heavily on the value of education. Education leads to knowledge;
however, knowledge doesn’t always lead to acceptance. We know that there are many
forms of strategy and relying only on the “spray and pray” theory in relation to sensemaking would not be the most effective idea. This is why we tend to lead to the
“underscore and explore” attitude. We have created different roles and outlets for the
general public to learn the positive effects of wine in relation with the sequence of the
message. The sequential avenue that we took, as seen throughout the case, is to
proactively involve ourselves with the public, while delivering messages at different
crucial times. We have also added many tools to discern the critical issues from one
another throughout the case, as well as understanding what works and what doesn’t in
terms of effectiveness.
Behavioral change is the ultimate measure: Changing behavior is what all
strategists would like to do in terms of whatever goal they may have. Chianti
25
Communications has many measures of determining effectiveness, however the largest
being to change behavior. The behavior we would like to ultimately change, or reverse, is
undoubtedly the issue concerning the government and their wish to label the bottles of
wine. However, throughout our research we have conducted, it remains inconclusive that
there is an inherent visibility that wine is not the healthiest, especially to the diet-crazers,
such as those on the Atkins Diet. This is why through our tactics; we would like to
change their attitude about wine and thus their behavior.
A thorough analysis of publics is key to defining the strategy and tactics, and will
create a much higher rate of acceptance and comprehension: Analyzing the publics is
usually the best tool in creating an effective case, however it is most often that the least
amount of time is spent in this area. We have found that by taking the time and evaluating
those publics is key to deem success. By examining those publics, we can discern critical
issues about each demographic area and learn what is important to that public, and also
how to reach them. This is also why after finalizing the case, Chianti Communications
has relied heavily on the Communication Environment chart. Though analyzing publics
arises in the discovering stage, stage three of assessment is also a time to reflect back on
those publics and be certain that our strategy, goals, and tactics are congruent with each
public created.
Recommendations/Feedback
Overall, we felt our group did a great job dissecting and analyzing this case. We
thoroughly addressed all aspects of our case and incorporated concepts that we had
learned in our Corporate Communication class as well as many other communication
26
courses. However, there was one specific area that we neglected to formally address
within our presentation. We neglected to address exactly how we were going to present
our case to the ATF. We determined that a pre-emptive action was needed to delegitimize the ATF’s proposal, but we did not address how we would offer our
explanation to the ATF. In order to address this we would use a different framework for
the justification of our opposition of nutrition labels. We would first highlight the survey
results we collected, that suggested that there is no intrinsic need for nutritional labels on
wine. Second, we would then underscore the extensive cost of labeling to the
manufacturers of wine. Finally, we would emphasize that we have already addressed the
“lack of information” issue through our extensive methods discussed in the tactics portion
of this paper.
Another minor note about the presentation that was brought up in the class
evaluation forms was that the font was too small or that our charts contained too much
information. We have concluded that the charts did in fact have too many words in some
sections, but that the charts were central elements to the justification of our proposal.
Conclusion
Throughout the analysis of this case, our group focused on creating a thorough
audience analysis that helped us to discover our strategic goals. Once in place, we
concentrated on creating effective tactics that are feasible. We based these tactics on
27
both concept from class and the textbook. From this case we have learned that
understanding the difference between communication and business goals made it easier
to create the strategy and tactics. Also, just because one of the publics may be latent or
unaware, they still must be considered to produce a well-rounded case. Lastly, we have
learned that evaluative research enables action. In the end, we took a real life problem
and provided an effective solution that could undoubtedly be implemented. As with all
of the case studies we complete, we acquire continuous improvement skills and
techniques to help us, Chianti Communications, to become more effective
communication consultants.
Bibliography
Smith, Ronald D., Strategic Planning for Public Relations. 2002. Lawrence
Erlbaum Associates, Publishers. New Jersey
28

http://www.atf.gov

http://www.historychannel.com

http://www.wineloverspage.com

http://www.winemarketcouncil.com
Appendices
Appendix A:
Wine Label
Appendix B:
KIS Charts
Appendix C:
Survey Example
29
Appendix D:
Qualitative Results
Appendix E:
Quantitative Results
Appendix F:
Tactics Chart
Appendix G:
Billboard Prototype
Appendix H:
100 Facts
Appendix A
What the Wine Label Tells You
I was unable to attach this page because it is a pdf file. Please see
www.atf.gov/pub/alctob_pub/p51901.pdf
for this appendix document
30
Appendix B
Wine Market Council
K
Current nationwide
campaign
I
WMC wants to make
wine a more widely
S
Our campaign must
keep this goal in mind
31
accepted part of
American culture
Current advertising
WMC believes that
campaign: “Wine. Since wine is a large part of
6000 B.C.”
culture and wants to
continue this long
history
Website:
Hold much value in
www.wineanswers.com their public’s questions,
concerns, and opinions
WMC is opposing the
The presentation of
labeling of wine
wine is very important
to the WMC
whil arguing against
labeling
In helping them oppose
labeling, we must focus
on continuing this time
honored tradition
Our campaign needs to
include this type of
feedback system
Our campaign must
address wine as an art
form vs. a
manufactured product
ATF
K
I
S
ATF wants to place
nutritional labels on
wine
ATF is a federal agency
Educating the public on
the contents is of great
importance
They have a regulatory
We need to educate the
public on the contents
of wine
When communicating
32
framework of thinking
ATF makes sure the
They are consumerproduct is safe and legal oreinted and are
concerned with
protecting the public
ATF makes sure the
They are consumer
product is properly
oriented and are
described
concerned with
protecting the public
with them, stick to
logistics
We need to keep their
concerns of the public
in mind
We must provide the
descriptions through
our tactical plans
Current Wine Consumers
K
I
Have never seen
nutritional labels on
wine
Large group of
consumers on diets, i.e.,
Atkins & low calorie
There have not been
many, if any,
complaints by current
consumers to put labels
on wine bottles
S
Do not know nutritional We need to educate
values of wine
them in other ways
They want to know how
many carbs and calories
are in each glass
They either do not want
the labels or do not
have an interest
We need to create
outlets where they can
find this information
We need to use this to
support our opposition
Potential Wine Consumers
K
Do not currently drink
wine
I
They prefer another
beverage
S
We must reach this
group by creating
outlets to try, taste, and
learn about wine
33
Have never seen
nutritional labels on
wine
Large group of public
on diets, i.e., Atkins,
etc.
They do not know the
nutritional contents of
wine
They want to know how
many carbs, calories,
etc. in everything
We need to educate
them on the contents
We need to educate
them, about the lowcarb issues and about
other nutritional aspects
Wine Producers
K
I
S
Distribute wine on a
regular basis
They know the contents We can receive the
of wine
nutritional information
from them to educate
consumers
The new labels will cost The producers do not
We must educate this
them money
want to pay more
group about the higher
money to add more
prices and use their
extensive labels
opposition to support
ours
Most were not happy
The do not like
They will more than
when forced to apply
restrictions and
likely support our
the current labeling
regulations
opposition
standards
Retailers, Restaurants, & Bars
K
They sell wine
They have never seen
nutritional labels on
I
They sell to current
wine drinkers and/or
stores
They do not know the
nutritional contents of
S
We need their help in
spreading the awareness
and acceptance of wine
We need to educate
them and give them
34
wine bottles
wine
Our tactics can increase
their sales
They will be pleased to
become a part of our
campaign
outlets to educate their
customers
Their profits will
increase
Media
K
I
S
The media does not
publicize this debate
They do not know
about it or do not think
it is newsworthy
The media is a latent
public because they
aren’t aware of the
issue yet
They will have an
impact, as the general
public and consumers
often view the media as
opinion leaders
The media can be
biased
The media could side
with the ATF and
gather public support
for the regulation
We need to educate the
media on the facts of
the debate and why it is
newsworthy
We need to build a
coalition with media
outlets by allowing
involvement posed by
query letters and story
idea memos
We need to tell our side
first (being proactive)
and gain support from
popular media sources
Appendix C
My UW-Green Bay classmates and I are
currently working on a case study. Please fill
out this survey completely and anonymously.
These survey results are very important to our
case, so we thank you very much for your
participation.
Your Age:
21-30
31-40
41-50
51-60
61 -
35
How often do you drink wine?
Not at all
Once in awhile
Frequently
(2-3 glasses a week +)
Why do you drink wine in comparison to any other alcoholic beverage?
Do you think wine should have a nutritional facts label? Why?
Would you make a purchase decision on wine products based on the nutritional
contents?
YES
NO
Are you currently on a Low-Carb Diet (i.e., Atkins)?
YES
NO
If yes, how long have you been on this low-carb diet?
---0 to 6 months
---6 to 12 months
---Over a year
Appendix D
Qualititative Survey Results
“Wine should not have a nutritional facts label!”
Rank
Percent
Sample Comment
36
1
35%
“Wine should just be enjoyed. . . When I have a glass
of wine I want to relax, not worry about how many
calories or carbs I am consuming. . . “
2
32%
“I don’t care. . . Doesn’t matter to me. . .I am not
concerned about what (calories/carbs) are in it. . . . . .”
3
18%
“I don’t read nutritional facts labels, they aren’t
important. . .I wouldn’t read it on a wine bottle. . I
can’t read when I drink wine. . .”
4
10%
“Wine shouldn’t have a nutritional facts label if beer
doesn’t have one. . .Today we have too much
information about everything and anything. . .”
5
5%
“Its alcohol, who cares. . . Everyone knows it is made
from fruit. . . It is all natural. . “
Appendix D
Qualitative Survey Results
“Wine should have a nutritional facts label!”
Rank Percent
Sample Comment
37
1
56%
“I thought every product had to have a
nutritional facts label on it. . . Everything else
does. . . All other alcoholic beverages have to
have them. . . “
2
25%
“With all of the diet hype lately, it wouldn’t be
a bad idea. . . . .Everything should the way
people are these days. . . Health craze. . .”
3
11%
“Information is good. . . If there is no label,
they are hiding something. . . I liked to be
informed. . “
4
7%
“I count calories. . . . I need to know how
many carbs are in each glass. . .”
5
1%
“Alcohol = Poison. . .”
Appendix E
Quantitative Survey Results
38
50
40
30
Ages of
participants
20
10
0
21-30 31-40 41-50 51-60 61 +
Do you think wine should have a nutritional facts label?
80
70
60
50
40
30
20
10
0
Yes
No
How often do you drink wine?
80
70
60
50
40
30
20
10
0
Frequently
Once in a while
Not at all
Of the 72% that responded, “No, wine should not
have nutritional facts labels,”. . . . . .
 22% drink wine frequently
 74% drink wine once in a while
39
 4% drink wine not at all
-73% said they “would NOT make a purchase decision on wine based
on the nutritional facts”
-27% said they “would make a purchase decision on wine based on
the nutritional facts:
 14% said they “are currently on a low-carb diet”
 86% said they “are not currently on a low-carb diet”
Of the 28% that responded, “Yes, wine should
have nutritional facts labels,”. . . . .
 9% drink wine frequently
 87% drink wine once in a while
 4% drink wine not at all
-62% said they “would NOT make a purchase decision on wine based
on the nutritional facts”
-38% said they “would make a purchase decision on wine based on
the nutritional facts”
 17% said they “are currently on a low-carb diet”
 83% said they “are not currently on a low-carb diet”
Appendix F
Tactics, Rationale, So What?, Measuring Effectiveness
40
TACTIC
RATIONALE
SO WHAT?
MEASURING
EFFECTIVENESS
Convention
To educate the members of
the wine council & wineries
about the current issue
involving nutrition labels.
We will inform wineries of
tactical measure they can
take such as the tactics listed
below.
Proactive Action
Strategy:
Encourage the wineries to
remain in contact with the
wine council via email,
focus groups, & surveys to
see how successful their
events were. We will then
receive qualitative &
quantitative research results.
Webpage
Commercials
Ads
Travel
Channel
Special
To educate the public of the
nutritional value of wine.
We will also highlight the
positive effects of wine
concerning heart disease &
the Atkins diet. Consumers
will be able to email any
questions to a wine expert
within the council.
We will include celebrities
in the commercials to
endorse the product, while
promoting positive effects of
wine as well as the
prestigious effects.
Through the creation of
billboards & magazine ads
in publishings such as
People, Travel, & Ladies
Home Journal we will place
ads about various positive
effects of wine, while
targeting the diet-crazers.
Through contacting the
travel channel, we can set up
a visit to one of our top
wineries. This will once
again promote the prestige
associated with wine & the
This convention will
increase participation &
form alliances through
this special audience
involvement. Involving a
key internal public, they
will have a chance to
interact & pose feedback.
Benefit Statement:
Includes benefits &
advantages your product
of service can offer the
various publics. Also to
satisfy the needs &
problems of the public.
This is public &
electronic media with
organizational roots.
Strategic
Communication
Strategies:
We can measure
effectiveness of this tactic
by quantitatively seeing
how many hits are on the
web page, and through
awareness evaluation, and
audience feedback.
Measurement of
effectiveness will come
from visible profit increase.
This is a controlled
media, external to the
organization, with an
access to large audiences.
Strategic
Communication
Strategies:
This is a controlled
media, external to the
organization, with an
access to large audiences.
Conventional
Communication
Strategies:
This uncontrolled
external & popular media
Measurement of
effectiveness will come
from visible profit increase
(known through pre and
post tests) and any media
tracking.
Measurement of
effectiveness will come
from visible profit increase
at the wineries in the
country and by cable
television ratings.
41
Food
Channel
Special
Waterford &
Wine
Meeting:
ATF, WMC,
& FDA
culture that surrounds it.
tactic will provide
opportunity for the
credible presentation of
organizational messages
to be delivered to large
audience.
We will contact the food
channel & ask them to
include us in an upcoming
cooking show. By doing
this, we can communicate
that wine has a gourmet
aspect, as well as an art
form, as is cooking. Also
possibly teach consumers
which wines are beneficial
to certain dishes.
Conventional
Communication
Strategies:
This uncontrolled
external & popular media
tactic will provide
opportunity for the
credible presentation of
organizational messages
to be delivered to large
audience, who can
appreciate the value of
the product.
Measurement of
effectiveness will come
from visible profit increase,
and quantitative tracking of
television ratings.
The WMC and Waterford
We can measure
Internal & Controlled
Crystal will team up at an
effectiveness
of this tactic
Media:
exclusive wine tasting event
by pre and post-tests, such
This exhibition will
at numerous Napa Valley
as a survey. We will also
involve on-site personal
wineries. The prestige of the involvement between the
see audience involvement
two timeless American
and
satisfaction. Sales will
people who create wine &
traditions will be showcased
be calculated from those
crystal and those who
& honored.
days
for Waterford & the
enjoy it. It will be a civic
wine products.
event for information
exchange & audience
involvement.
The ATF, Wine Market
We can generate how
Positive Information
Council, and the FDA will
effective the meeting was
Exchange:
meet to discuss the issues at
by
a post survey and also by
This business occasion
hand.
ensuring
that all the goals
will be a good
are met in each
opportunity to get the
organization’s
eyes.
reps from various
organizations together to
discuss their
organizational views &
goals.
Appendix G
42
Relax. . . . .
It’s only 1g Carb!
222www
www.wineanswers.com
Appendix H
43
100 Facts
1. The Wine Market Council (WMC) is a non-profit association of grape growers,
wine producers, importers, wholesalers, and other affiliated businesses and
organizations.
2. The WMC’s mission is to establish the widespread acceptance of wine as a
rewarding part of American culture and to encourage the responsible enjoyment
of wine by current and future generations of adults in the United States.
3. Using the Council’s consumer research studies as a foundation, its public relations
plan, Internet programs, merchandising program and advertising campaign work
together to strengthen demand for wine in the U.S. for the benefit of the industry
as a whole.
4. Wine Market Council’s programs reach out to marginal wine consumers (those
who drink wine less often than weekly) with the goal of shifting their attitudes
toward wine so that wine can become for them a more common, casual, everyday
enjoyment.
5. The Council’s programs are all essential components in accomplishing the
mission of broadening and strengthening the consumer base of the U.S. wine
market.
6. Wine Market Council's public relations program is currently focused on the
launch of the council's nationwide advertising campaign, "Wine. Since 6000
B.C."
7. This campaign, "Wine. Since 6000 B.C." communicates the authenticity and
enduring relevance of wine as an enjoyable part of casual, everyday life.
8. The advertising placements of the new campaign will occur in waves, with an
early spring 2004 flight of ads scheduled to follow the October campaign launch.
9. In addition to the initial placements in People Magazine, other selected media
venues will include several mainstream, national consumer publications, such as
USA Today.
10. The WMC public relations campaign addresses the information issues
surrounding wine; reinforces wine’s role as an everyday enjoyment; evolves the
image of wine by making it casual and contemporary; and highlights
wineanswers.com as a valuable and easy-to-use consumer resource.
11. Wine Market Council’s public relations strategy is to use its consumer research to
identify targets and craft appropriate messages
12. The WMC uses wineanswers.com as a vehicle to support its public relations
campaign, and uses wineanswers.com experts and content as a source of new
public relations initiatives and to drive traffic back to the site.
13. Wine Market Council public relations initiatives target newspapers, magazines
and web sites, as well as network and affiliate television and radio tactically as
appropriate.
14. Targets include mainstream outlets such as: USA Today, Good Housekeeping,
Yahoo.com, national network morning shows, and syndicated radio programs.
15. Wine Market Council’s Internet initiative has helped Wine Market Council reach
marginal wine drinkers by spreading its messages via the Internet.
44
16. The launch of wineanswers.com was a success with more than 21 million media
impressions.
17. More than 4,000 unique visitors use the web site each month—and that number is
growing rapidly.
18. Wineanswers.com content reaches many thousands of Internet users per month
through content provider relationships.
19. Over 595 million gallons of wine have been consumed in the United States in
2002.
20. Of the 203 million adults in the U.S., 26.4 percent are wine drinkers.
21. There are 25.4 million core wine drinkers (those who consume wine weekly or
more often) and 28.2 million marginal wine drinkers (those who drink wine less
often than weekly).
22. While core wine drinkers represent just 12.5 percent of all U.S. adults, they
consume 86 percent of the wine.
23. The remaining 14 percent of wine consumption is accounted for by the 13.9
percent of adults who are marginal wine drinkers.
24. The population of core wine drinkers grew from 19.2 to 25.4 million adults in just
three years, an increase of 32 percent, the core wine drinking population exhibited
by far the greatest strength of any measured consumer segment.
25. A significant percentage of new core wine drinkers are coming from earlyadopting young adults in there twenties.
26. Looking at all age categories, it remains true that the over-40 age groups have the
highest representation of core wine drinkers, and the under-40 age groups are
dominated by marginal wine drinkers.
27. Both core and marginal wine drinkers exhibit very positive attitudes about many
aspects of wine and wine consumption. For both groups, the highest rated
attribute of wine is "makes a good gift," followed closely by "I really like the taste
of wine."
28. The high degree of awareness of the positive health effects of moderate wine
consumption persists in both core and marginal segments.
29. In the 2003 Merrill Research study, only 50 percent of marginal wine drinkers
stated that they actually preferred wine over beer and spirits.
30. California's 847 wineries and 4,400 grape growers create 145,000 full-time
equivalent jobs for $4.3 billion in wages in wineries, vineyards, and other
affiliated businesses throughout the state.
31. California is America's top agricultural state, and wine is California's most
valuable finished agricultural product.
32. The economic impact of the wine industry on the state of California totals $33
billion, counting revenues to the wine industry and allied industries, and direct
and indirect economic benefits.
33. California accounts for 90 percent of all U.S. wine production.
34. California wineries shipped 450 million gallons to the U.S. and abroad in 2001.
35. California winery shipments to the U.S. comprise roughly $13.4 billion of the
$19.8 billion estimated retail value of all wine sold in the U.S. in 2001.
36. California is the leading state in wine consumption in the U.S., with more than 42
million cases of wine sold in California in 2001.
45
37. The calories in a 4-ounce glass of wine ranges from about 80 to 100 calories.
38. A dry white wine may have 1 gram of carbohydrate where as a very sweet dessert
wine could have up to 13 grams.
39. Wine is fat free and contains no cholesterol.
40. Lighter wines tend to have fewer calories than heavier wines. Some wines are
higher in carbohydrates than others due to their residual sugars.
41. The ATF is a multi-mission treasury bureau responsible for carrying out
compliance and law enforcement duties in alcohol, tobacco, firearms, and
explosives.
42. The ATF enforces the federal laws and regulations relating to alcohol, tobacco
firearms explosives and arson by working with others.
43. The ATF approves labels and monitors advertising
44. The ATF regulates labeling, marking, packaging, and branding of all distilled
spirits, wine and beer sold in the United States
45. The ATF regulates production in the United States and the importation of all
alcohol beverages, including distilled spirits, malt beverages, and wine
46. The ATF ensures to the best of its ability that an alcohol beverage label accurately
reflects the contents in the container
47. The ATF approves the designation of viticultural areas
48. The ATF checks alcohol beverages for compliance with Food and Drug
Administration (FDA) decisions concerning food additives and colorings
49. The ATF works to suppress and prevent crime and violence through enforcement
of regulation and community outreach.
50. The ATF works to ensure fair and proper revenue collection.
51. The ATF works to provide fair and effective industry regulation
52. The ATF supports and assists federal, state, local, and international law
enforcement.
53. The ATF provides innovative training programs in support of criminal and
regulatory enforcement.
54. The ATF’s vision is to work for a Sound and Safer America Through Innovation
and Partnerships.
55. The ATF responds to public outcry against crime, violence, and other threats to
public safety.
56. The ATF also strives to continue their part to maintain the economic stability of
the United States.
57. The ATF wants to help chart the course to change the way we serve the public
and achieve new levels of effectiveness.
58. The ATF’s values include setting and upholding the highest standards of
excellence and integrity.
59. The ATF’s values include providing quality service and promoting strong external
partnerships.
60. The ATF’s values include developing a diverse, innovative, and well-trained work
force in order to collectively achieve our goals.
61. In the alcohol beverage industry, the ATF regulates the qualification and
operations of distilleries, wineries, and breweries, as well as importers and
wholesalers in the industry.
46
62. ATF has established mutually beneficial working relationships to minimize the
regulatory burdens on businesses while still providing necessary government
oversight and protecting consumer interests.
63. Consumers of alcohol beverage products are protected by several functions
unique to ATF.
64. The ATF National Laboratory Center is the premier tester of new products
coming onto the market, as well as the facility that determines whether any
products currently on the market pose a health risk to consumers.
65. To ensure alcohol beverage labels do not contain misleading information and
adhere to regulatory mandates, ATF examines all label applications for approval.
66. The goals of the alcohol program are to ensure the collection of alcohol beverage
excise taxes; to provide for accurate deposit and accounting for these taxes; to
prevent entry into the industry by criminals or persons whose business experience
or associations pose a risk of tax fraud; and to suppress label fraud, commercial
bribery, diversion and smuggling, and other unlawful practices in the alcohol
beverage marketplace.
67. ATF conducts a full range of regulatory functions within the alcohol beverage
industry.
68. The Federal Alcohol Administration Act, passed shortly after the repeal of
Prohibition, authorizes ATF to fully regulate the industry and to provide
protection to consumers of alcohol beverages.
69. ATF is charged with protecting the consumer by preventing false or misleading
claims on beverage labels and in advertising.
70. The Bureau enforces the Government Health Warning Statement requirements,
prohibits health claims or exaggerated quality claims, monitors industry
advertising, and conducts investigations of suspected label fraud.
71. Certificates of Label Approval are issued by ATF for every alcohol beverage
offered for sale in the United States, with limited exceptions (e.g., intrastate).
72. ATF investigates anticompetitive business practices between alcohol beverage
suppliers and retailers to preserve the retailer's economic independence, as well as
to investigate consumer complaints of tainted or adulterated alcohol beverages.
73. Reports of contamination in alcohol beverages are also investigated, and in the
recent past, the Bureau has dealt with domestic and foreign contamination
involving diethylene glycol, mercury, lead, methanol, fon-naldehyde, and even
radioactive contamination from the Chernobyl disaster
74. In addition, ATF acts to prevent organized crime and other criminal elements
from entering the alcohol beverage industry by screening individuals who apply
for Federal manufacture or wholesale basic permits.
75. To ensure that the alcohol and tobacco industry members comply with the
applicable laws and regulations, ATF conducts compliance inspections and issues
permits to engage in the various types of businesses within the alcohol and
tobacco industries.
76. The ATF received 5,439 Alcohol Permit Applications in 2003.
77. The ATF processed 5,434 Alcohol Permit Applications in 2003.
78. The ATF conducted 1,240 application inspections in 2003.
79. The ATF disclosed 2,187 alcohol violations in 2003.
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80. The ATF conducted 2,515 compliance inspections in 2003.
81. The ATF assessed $2,494,000 additional taxes in 2003.
82. ATF's Diversion and Smuggling Program is geared toward curbing a rising trend
of illegal diversion (smuggling) activities involving cigarettes and distilled spirits
in order to evade tax payments and other laws within ATF's jurisdiction.
83. Until recently, when Canada substantially reduced its high tobacco taxes,
Canadian authorities deter-mined that a significant and increasing problem existed
with tobacco products being smuggled into Canada from the United States to
evade Canadian excise taxes and duties.
84. Because most of this contraband was channeled through the United States, the
Royal Canadian Mounted Police and Canadian Customs requested specific
assistance from ATF.
85. Diversion activities are also defrauding the United States of tax revenues. In this
case, non-tax-paid cigarettes and distilled spirits are fraudulently claimed for
export markets (for which there is no tax liability) when in fact they are illegally
diverted back into the U.S. domestic market for sale where taxes should apply.
86. Canadian authorities estimate revenue losses from tobacco and alcohol diversion
are costing several hundred million dollars annually. For example, a 1.75 liter
bottle of vodka purchased in Washington, D.C. or a Las Vegas liquor store for
$10 might sell for as much as $40 if it were purchased in a Canadian liquor store.
87. This lucrative black market "66 profit" has attracted organized crime groups from
both sides of the border who are actively participating in this diversion activity.
88. Because the documentation offered to ATF to support the tax-free exportation of
these products often is either counterfeit or absent, ATF is pursuing tax
assessments against a number of domestic distillers.
89. ATF is also considering administrative action or criminal prosecution against
retailers and wholesalers who knowingly supply smuggling organizations.
90. Currently, ATF is conducting several joint investigations with the Internal
Revenue Service, U.S. Customs Services, the Royal Canadian Mounted Police,
and Canadian Customs regarding significant tobacco and distilled spirits-related
criminal diversion activities within the United States and Canada.
91. ATF is also developing an intelligence database for diversion cases that involve
alcohol and tobacco criminal diversion activity.
92. Wine is an alcoholic beverage made by the fermentation of the juice of the grape.
93. It is so ancient that its origin is unknown.
94. Wine is mentioned in early Egyptian inscriptions and in the literature of many
different lands.
95. The term wine is also applied to alcoholic beverages made from plants other than
the grape, e.g., elderberry wine, dandelion wine.
96. Wines are distinguished by color, flavor, bouquet or aroma, and alcoholic content.
97. Wine is also divided into three main types: still or natural, fortified, and sparkling.
98. Wines are red, white, or rose (depending on the grape used and the amount of
time the skins have been left to ferment in the juice). For red wines the entire
crushed grape is utilized; for white wines, the juice only. In rose wines, the skins
are removed after fermentation has begun, thus producing a light pink color.
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99. Wines are also classified as dry or sweet, according to whether the grape sugar is
allowed to ferment completely into alcohol (dry), or whether some residual sugar
has been left (sweet).
100. There are also significant studies that suggest that the consumption of wine is
beneficial to your health. The “highly publicized studies of the French, particularly in
Lyons, claim that a moderate consumption of red wine might help reduce the risk of
cardiovascular disease. Such findings were judged worthy of further investigation by
the American Medical Association.
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