Conjunctive Labeling Information and FAQs Definition of Conjunctive Labeling: Labeling of a wine to show both region and sub-region (AVA). In our case, it refers to the inclusion of “Sonoma County” on the front label of all Sonoma County wines along with any AVA designation. Objectives: To build brand equity for Sonoma County wines and preserve and strengthen our position in the world wine market; To increase sales of wines produced from Sonoma County grapes. Background For more than fifteen years, many growers and vintners in Sonoma County have expressed interest in pursuing adoption of conjunctive labeling requirements for Sonoma County wines. Many world class wine regions, chiefly Bordeaux and Burgundy, saw the value of strengthening their regional “brand” by encouraging all wineries within the area to identify it on their bottles, and the rest, as they say, is history. With its independent spirit and geographic size, making a case for the benefits of conjunctive labeling among Sonoma County’s wineries needed solid substantiation. After preliminary research, the Sonoma County Winegrape Commission (SCWC) conducted new market research with WineOpinions in fall 2009. The results of this carefully crafted study of core wine drinkers and members of the trade from across the country brings substantive, fresh data to the conversation, and offers us information about consumer and trade perceptions related to the power of the Sonoma County brand. A key finding of the research, from both consumers and trade, was that both groups saw no decline in perceived value when both the AVA and the county were noted on the label, and in most cases, there was a benefit to wineries in linking the location of an AVA with Sonoma County. Consumers not familiar with every Sonoma County AVA would be more inclined to pick up the bottle knowing it came from Sonoma County. Our Status Today Based on the power of this research and case studies of other domestic wine regions adopting conjunctive labeling, the Sonoma County Winegrape Commission Board of Directors voted to endorse the pursuit of conjunctive labeling for Sonoma County. The Sonoma County Vintners (SCV) Board of Directors has agreed to explore the viability of conjunctive labeling, and has charged SCV staff to work with all of the AVA groups in the county to share the SCWC research, offer a tentative plan and timeline for adoption, and get their input and feedback on the proposed process. As of February 2010, meetings with AVA leadership and other wine association leadership are taking place to garner a consensus of support and address concerns and potential issues that arise. If you are a vintner or grower with comments you would like to share, please direct any feedback or questions to your AVA leadership or the SCWC and SCV using contact information below. Frequently Asked Questions: Q: Why should we adopt conjunctive labeling for Sonoma County? A: The power of the Sonoma County brand among consumers and trade is powerful, with strong association of quality, excellent awareness, and also value. According to Christian Miller at WineOpinions, this combination of factors is extremely unusual among wine regions, and one that should be fully harnessed for the long-term strength of our region and brand in the world wine marketplace. Case studies of other world class wine regions point to the value of working together to build and maintain the strength of our region. With the wine world becoming bigger every day as new countries and regions come on the market, Sonoma County is missing opportunities to connect the positive associations of Sonoma County and its AVAs through literally millions of added impressions on the store shelf, the wine list, and the table. The research also indicated that both trade and consumers were in strong agreement that including both AVA and Sonoma County was preferable to either Sonoma County or the AVA alone. Q: Won’t adding Sonoma County to the label with the AVA lessen the quality or price expectations of consumers? A: As noted in the question above, the market research among core wine consumers in the US indicated that quality association and price expectation were consistently equal to or higher when both AVA and County were listed on the label. The trade research overwhelmingly (over 80% of respondents) recommended the use of both AVA and Sonoma County as being the best way to market wines from this region. Q: Why can’t the conjunctive labeling be voluntary and not mandatory? A: Research dating back to 2003 has indicated conjunctive labeling would benefit Sonoma County wineries, and some have voluntarily included Sonoma County on their labels. The Sonoma County Winegrape Commission has recognized those wineries with its Sonoma County Wine Stars program. Those wineries voluntarily adopting conjunctive labeling comprise fewer than 20% of all wineries in the county. If there was 100% participation, there would be over 100 MILLION label faces each year on retail shelves and restaurant wine lists with Sonoma County. Napa Valley has had conjunctive labeling since 1987. The consistent placement of Napa Valley on wine labels along with AVA designations has undoubtedly contributed to their success in being the most widely recognized wine region in the world by US consumers. Voluntary programs take much longer to implement, leaving many missed opportunities for promoting Sonoma County. Setting a reasonable phase-in period with the legislation will be a simple way to build brand equity for Sonoma County and its AVAs. It is also important to remember that this is industry-driven legislation. We as the Sonoma County wine and grape industry see a huge opportunity to secure our position in the world wine market and improve our sales and marketing at minimal cost by asking our legislators to construct these consistent representations for Sonoma County. Q: What steps are necessary to make this into law? A: Once every AVA and wine organization has had a chance to review the research and gather input from their members, we will know if a clear consensus of support is in place. Each AVA will choose how they will gauge their member support, be it via board of director adoption, member vote, or another method. We anticipate that this will take until late March to accomplish. If Sonoma County chooses to draft legislation that is similar to that of other adopted conjunctive labeling legislation in California, the process will be simple. Legislation will be drafted and entrusted to one or more of our legislative representatives for presentation to the California State Legislature where it must be voted on and approved. If it were approved and signed by the Governor this year, it would become law on January 1, 2011. Based on a three-year phase-in period, wineries would have until January 2014 to modify their labels to include Sonoma County. This phase-in period reduces the financial impacts on wineries who have recently updated their labels. Wines already labeled and bottled are excluded from the requirement. Q: May I see the market research and get more information? A: Yes. An overview is attached that provides a summary of the findings. You can contact either Nick Frey or Honore Comfort at the numbers and emails below if you are interested in viewing the research in more detail. Q: I would like to share my opinion regarding conjunctive labeling. How do I do that? A: If you are a vintner or grower with comments you would like to share, please direct any feedback or questions to your AVA leadership, winery association, or the SCWC and SCV using contact information below. We are interested in hearing your comments and welcome your input. Q: Do I have to add Sonoma County to my label if I already have Sonoma in my AVA? A: This name question is more evident in Sonoma County and as such it merits full consideration and discussion among all of the regions bearing “Sonoma” names. If the AVA has “Sonoma” in the name, such as Sonoma Valley or Sonoma Coast, our initial recommendation is that the label include “Sonoma County”. Consumers are confused about Sonoma Valley as an AVA within Sonoma County because of Napa Valley, few recognize Sonoma Mountain, and Sonoma Coast has less recognition than Sonoma County. So while having Sonoma in the AVA name is beneficial, we feel conjunctive labeling will reduce consumer confusion long-term. There is also a sentiment that as we in Sonoma County work together to promote the quality and breadth of our region with every AVA involved in a historically new way, the Sonoma County mark on every bottle could act as a statement of cohesion and unity for every vintner and grower. Q: I am concerned about the font sizes in the Napa Valley legislation and how they would look on my label. Are the font sizes set at this point? A: There is discussion about what font size would be required and whether the guidelines are already established. At this point, the Napa and Paso Robles legislation are examples, but adhering to their font sizes may not be essential. As these issues are explored, a labeling task force will be developed if needed to consider options and build as much consensus and support as possible among our wineries. For more information, please contact: Honore Comfort, Executive Director, Sonoma County Vintners honore@sonomawine.com or 707/522-5842 Nick Frey, President, Sonoma County Winegrape Commission frey@sonomawinegrape.org or 707/522-5861