There seems to be a great deal of confusion surrounding the concept of wine products. In New York, “wine product” is a term of art that must be distinguished from “Wine”, “low alcohol wine”, and “wine specialty items.”

Pursuant to §3 (36) of New York’s ABC Law, “Wine” means the product of the normal alcoholic fermentation of the juice of fresh, sound, ripe grapes, or other fruits or plants with the usual cellar treatment and necessary additions to correct defects due to climatic, saccharine and seasonal conditions, including champagne, sparkling and fortified wine of an alcoholic content not to exceed twenty-four per centum by volume.   Usual Cellar Treatment means the practices and procedures of using various methods and materials to correct or stabilize the wine or the fruit juices from which it is made. (See Internal Revenue Code § 5382).  To receive a certificate of label approval (“COLA”) from the TTB, wine must have an alcoholic beverage content of not less than seven percent nor more than 24 percent by volume. 

If something is added to the beverage that is not part of the usual cellar treatment, or if the beverage has less than seven percent alcohol, the resulting beverage must carry a notation on the label that clarifies its status. A wine product is one such beverage.

“Wine product” means a beverage containing wine to which is added concentrated or unconcentrated juice, flavoring material, water, citric acid, sugar and carbon dioxide and containing not more than six per centum alcohol by volume, to which nothing other than such wine has been added to increase the alcoholic content of such beverage.  (See ABC law §3(36-a). Because wine products must have an alcohol content of six percent or less, they cannot obtain a COLA from the TTB. Consequently, wine products require New York State Label approval.  The SLA will not approve that label unless it has a list of the required ingredients and the words, “wine product” are printed clearly on it.  Wine products are unusual because they can be sold in grocery stores as well as package stores. That is the reason wine products must be distinguished from low alcohol wine, and wine specialty items.

Low alcohol wine meets the TTB definition of wine except that its alcoholic beverage content is less than seven percent, so it does not qualify for a COLA. It therefore needs New York State label approval and the state will require that the label clearly state, “Low Alcohol Wine.” Low alcohol wine may not be sold in grocery stores.

Similarly, a “wine specialty” item may not be sold in a grocery store. A wine specialty is “Wine” containing less than 7% alcohol by volume that includes ingredients not permitted in “Wine” as defined in ABCL §3(36) but does not meet the definition of a “Wine Product” set forth in ABCL §3 (36-a). New  York State requires the label to clearly show the designation “Wine Specialty.”  

While wine, low alcohol wine and wine specialty items are exempt from New York’s Returnable Container Act (commonly referred to as the “Bottle Bill”), wine products are not. Like beer, wine products require a deposit of at least 5-cents on containers that hold less than one gallon. 

Keven Danow is an attorney representing members of all three tiers of the Beverage Alcohol Industry and member of The Danow Group, 605 Third Avenue, New York, NY 10158.  (212 3703744). Website: thedanowgroup.com; email:kd@thedanowgroup.com