What are the Federal requirements for “Custom Crush” clients and winemakers?

What is a “Custom Crush” arrangement and what are the Federal requirements for “Custom Crush” clients and winemakers?

In a typical custom crush arrangement, a grape grower or any person with winemaking materials (the “client”) enters into a contract with a bonded winery proprietor to have the grapes processed into wine. The client retains title to the grapes, and the wine is made to the client’s specifications. The finished wine is returned to the client for sale to other dealers, or the winery sometimes sells the wine on behalf of the client.

The custom crush client may be required to obtain a Federal Wholesaler’s Basic Permit from TTB. This permit allows the client to engage in the business of purchasing wine for resale at wholesale, in accordance with the Federal Alcohol Administration Act at 27 U.S.C. 203(c)(1) and 27 CFR 1.22. Although the client is specifically paying for the producer’s services, the client has purchased wine (within the broad meaning of the term) at the price set in the agreement. If the client engages in activities normally associated with wholesaling, such as setting the price for the wine, determining which dealers will be sold the wine, and controlling and paying for advertising of the product, the client must have a wholesaler’s basic permit. If, however, the client merely receives the proceeds from the sale by the winery of the resulting wine, a permit would not be required.

The custom crush client who engages in the business of selling wine is liable for Registration as a Liquor Dealer.  The holder of a federal permit is automatically registered to sell at the address shown on the permit.  If selling at retail at a location where you do not hold a valid producer, blender, wholesaler or importer permit, the retailer must register that location by filing TTB F 5630.5(d) There is no cost for registration.

Bonded winery proprietors must ensure that the receipt of winemaking materials and the ensuing activities associated with the production of custom crush wine is properly recorded. TTB reminds the industry that wine produced for custom crush clients carries the same regulatory requirements for recordkeeping, reporting, labeling and taxation as wine made for the winery itself.

Manufacturing partner

The bottling winery is responsible for obtaining an appropriate Certificate of Label Approval, and the wine premises which removes the wine from bond is responsible for payment of Federal excise tax at the rate appropriate for the producing winery. For the purposes of determining eligibility for the Small Domestic Producer’s Credit, all wine produced for clients must be included in the production and removal calculations (see 27 CFR 24.278-9).

Source: https://www.ttb.gov/wine/wine-faq.shtml

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What are the rules for transfer of unlabelled bottled wine?

When unlabeled bottled wine is transferred among two or more bonded wine premises for aging or labeling, the bottler must provide a copy of the approved Application For And Certification/Exemption of Label/Bottle Approval (COLA) TTB Form 5100.31 under which the wine was bottled. The transfer in bond record which accompanies the wine must be accurate and specific, and the label information record for the wine must fully support any claims made on the label to be affixed to the wine.

The responsibility for transferring accurate label information is not that of the producer alone; it is the responsibility of all holders of the wine from the time it is produced until it is removed from bond for consumption or sale.

Here are guidelines for the various parties that may be involved when unlabeled bottled wine is transferred among bonded premises:

What are the responsibilities of the Producer?

The producer of the wine must ensure that the transfer in bond record required by 27 CFR 24.309 contains accurate and specific label information for all bulk wine shipped in bond (or tax paid) to another premises for bottling. This allows the bottler to apply for a COLA and ensures that the product label is correct.

What are the responsibilities of the Bottler?

The bottler obtains a COLA which can be substantiated by the transfer record which accompanied the wine from the producer. Unless the wine will be bottled at a tax paid wine bottling house, the bottler will make sure that the wine to be bottled is received and maintained on bonded (not tax paid) premises. The bottler maintains records in accordance with 27 CFR 24.308.

If the bottler transfers unlabeled bottled wine to another bonded premises for labeling, the bottler must send the wine in bond (untaxpaid) with the COLA under which the wine was bottled. If a different product label will be affixed, the bottler must obtain a correct COLA, and forward it to the premises where the label will be affixed. The transfer in bond record that accompanies the bottled wine must contain accurate and specific information which substantiates the product label, as specified by 27 CFR 24.309. However, if unlabeled bottled wine is transferred to another bonded premises for aging only, and will be subsequently returned to the bottler for the affixing of the product label, the COLA does not have to accompany the shipments.

To reiterate, an approved label which accompanies the wine must carry the minimum label requirements, but it might not be the label eventually affixed to the product. The label used to bottle the wine is sometimes referred to as the “generic” label. The bottler may apply for another COLA for a product label with specific label claims, as long as the claims are substantiated by the label information record requirements of 27 CFR 24.314.

What does the Labeller receive from the Bottler?

The person who will affix the product label receives the unlabeled, untaxpaid bottled wine, the COLA for the product label to be affixed, and the transfer in bond record (27 CFR 24.309) which contains accurate and specific information which substantiates the label claims.

Only the bottler of the wine may apply for a COLA. If the owner of unlabeled bottled wine wants to label the wine with a label other than that which accompanied the wine, the bottler must be contacted, and the bottler must work with the owner to obtain an approved product label which is fully substantiated by the label information record for that wine.

What if the bottler is unable to provide a COLA?

If the bottler of the wine is unable to obtain label approval for the wine to be labelled, the wine may only be labeled if it is dumped to bulk and re-bottled. It may be re-bottled when an appropriate COLA is obtained by the bottler. The label may not contain any information which is not fully supported by the label information record for the wine.

Red wine in glass bottling machine at winery

What is the responsibility of the person who removes the wine from bond?

If the labelled wine is transferred in bond to another bonded wine premises for taxable removal, it must be accompanied by the transfer in bond record (27 CFR 24.309) which contains accurate and specific information which substantiates the label claims.

The person who pays the tax on the wine is the qualified proprietor of a bonded winery or bonded wine cellar, and not a wholesaler, wine broker, agent, negotiate, retailer, consumer or, necessarily, the actual owner of the wine. Bottled wine may not be removed from bond (i.e., tax paid) without a COLA and an approved product label being affixed. This requirement is given in the wine regulations at 27 CFR 24.257(a) which states in part: “The proprietor must label each bottle or other container of beverage wine prior to removal for consumption or sale.”

How long the records must be kept?

All records must be retained for a period of not less than three years from the record date or the date of last entry required to be made in the record, whichever is later.

However, TTB may require records to be kept for a period of not more than three additional years, if deemed necessary.

Source: https://www.ttb.gov/wine/wine-faq.shtml

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Bulk Wine, Bulk Spirits and Private Label Show Comes To Europe in 2018

International Bulk Wine and Spirits Show (IBWSS) which is an annual show in San Francisco that caters to the US bulk wine, bulk spirits and private label buyers now also comes to London. IBWSS London will be an annual event exhibiting global bulk wine, bulk spirits and private label service providers. The IBWSS London will give European supermarkets, retailers, restaurants, wineries, distilleries and other buyers an opportunity to source bulk wine and spirits in one place, and meet private label suppliers.

Event Date: Jan 24-25, 2018

Location: The Royal Horticultural Halls Lindley Hall, London

Bulk Wine - IBWSShow London - 2018

“The bulk segment holds the largest market share in the wine and spirits industry,” said Sid Patel, CEO of Beverage Trade Network.  “Bulk trading is an age-old trade between producers, but we are now seeing the business take on a very impressive position across the industry. The International Bulk Wine and Spirits Show aims to give the bulk trade a truly dynamic trading platform where buyers can confidently conduct business with the world’s most reputable suppliers.”

As the central exchange for European trade, London is positioned perfectly for the fair. The city has long acted as the European trading post between the northern and southern hemispheres.  With the launch of IBWSS, international bulk suppliers from some of the world’s most important markets will have unprecedented access to the European market.

Registration for The International Bulk Wine and Spirits Show will open to all international suppliers on March 1, 2017. IBWSS London is brought to you by Beverage Trade Network.

For more information, press releases and launch discount for exhibitors, please fill out interest form here: https://goo.gl/forms/zrHJ8461hV0ZFRi32

About Beverage Trade Network

Beverage Trade Network (BTN) is a leading online marketing and B2B networking platform servicing suppliers, buyers and beverage professionals in the global beverage industry. BTN provides a selection of sourcing solutions for importers and distributors as well as an extensive range of marketing and distribution services for international suppliers. BTN also runs a line-up of b2b trade shows around the world. For more information about BTN, please visit www.beveragetradenetwork.com

About The International Bulk Wine and Spirits Show

The International Bulk Wine and Spirits Show (IBWSS) is an annual trade show and conference, open to trade professionals only, that takes place takes place in London, UK and San Francisco, CA. IBWSS exhibitors are wineries and distilleries looking to sell bulk wine and spirits, producers and negociants who offer contract manufacturing / private label programs and wineries / distilleries / importers who have one time excess stock to clear. IBWSS buyers are other wineries and distilleries looking to meet up their demand, Importers, Retailers and Distributors looking for private label programs, negociants who are looking to meet the growers and producers.

2018 International Bulk Wine and Spirits Show – Exhibitor Registration (London) Now Open Register Today!

The Taj Group launches its own private wine label

In response to a notable increase in the number of wine drinkers in India, the Taj Group has identified the need for an exclusive range of good quality wines and has launched a brand new wine label, Taj Private Label Wines.

Consisting of two whites and four reds, this carefully curated selection has been crafted and bottled exclusively for Taj luxury hotels in India and makes for the perfect addition to its already extensive wine selection.

Taj Private Label Wines have been meticulously chosen according to the preference of the Taj clientele and are synonymous with its grandeur. Handpicked by the country’s most distinguished wine connoisseurs, the Taj Private Label Wines include:

Red wines

  • Penfolds Koonunga Hills Seventy Six Taj Cellar Selection Cabernet Shiraz 2010, a distinguished wine from the mighty Grange which put Australia on the world wine map. With a dense purple colour and charming aromas of wild berries, this spectacular wine is balanced, yet endowed with a plush and expansive palate profile.
  • Les Pagodes De Cos Au the Taj Mahal Palace Mumbai 2008 is Taj’s tribute to the long history between the Chateau and India. This indulgent wine comes from the house of Cos D’Estournel in France and offers beautiful freshness along with sweet, pure notes of creme de cassis, earth, and forest floor.
  • Palais Castellani Toscana IGT 2009, a deep ruby red selection comes from the eco-friendly and socially responsible wineries of Tuscany. Laying on a texture of balsamic notes eucalyptus and mint, this characteristic Tuscan wine is perfect for an evening with the family.
  • Svara, showcases the rich heritage of India and its land. With a faint touch of purple this specially created wine by the Taj in association with Fratelli wines includes aromas of crisp and aromatic fruits with well integrated tannins and an elegant finish. In an endeavor to create an additional interactive experience for the guests, Svara has for the first time, partnered with Blippar. The wine labels have been made Blippable to recreate the spirit of the vibrant country in a glass, bringing a wine that represents the land and heritage of India. Blippar has ensured to make the consumer experience a memorable one by bringing, music (street and contemporary) and flavours that go best with wine, to life through an interactive twist to the label on the bottle itself.

White wines

  • Saint Clair Pioneer Block 2 Taj Cellar Selection Sauvignon 2013, a pale straw expression of boldness with a distinctive aroma of green capsicum and ripe gooseberries. Created by the biggest family-owned estate of New Zealand, this particular selection was an unparalleled choice for a Taj Cellar Selection.
  •  Palais Corte Giara Pinot Grigio IGT Delle Venezie 2013 an undisputed choice from Veneto in Italy. This straw yellow wine is light and delicate and is characterised by a subtle elegant floral nuance followed by hints of golden delicious apples and distinctive vegetal notes.

Commenting on the launch of the new wine label, Gaurav Pokhariyal, General Manager, The Taj Mahal Palace, Mumbai says: “This new world range of wines, creates a stunning palate of delicate flavours with mesmerizing undertones of rich enigmatic aromas. From flirty whites to dazzling ruby reds each wine has been carefully hand-picked, procured and bottled exclusively to be a part of the Taj Private Label Wines”.

This specially created collection has been bottled exclusively for Taj Luxury hotels in India.

Source : http://ehotelier.com/global/2015/02/13/taj-group-launches-private-wine-label/

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Agajanian Vineyards and Wine Company Buys Stake in Napa Valley Distillery

Napa Valley Distillery and Agajanian Vineyards and Wine Company combine forces through strategic financial agreement.

Napa, California (PRWEB) January 16, 2017

Napa Valley Distillery, the first distillery in the city of Napa since Prohibition, and the only distillery in Napa Valley, has entered into a financial agreement with Agajanian Vineyards and Wine Company, a second generation supplier of Premium Bulk Wine and WineGrapes.

As part of the agreement, Agajanian Vineyards and Wine Company has made an investment into the fast growing craft-spirits maker and now owns a minority equity stake. The exact terms of the deal are undisclosed.

Arthur Hartunian, founder and proprietor of Napa Valley Distillery says, “This deal makes all the sense in the world. Agajanian is a premiere supplier of the premium raw material we need to make many of our products. They also bring a mountain of resources, experiences and connections throughout California’s beverage alcohol industry. Their investment will help us realize some of our immediate goals.”

 Gary Agajanian, founder and President of Agajanian Vineyards and Wine Company, believes their investment in Napa Valley Distillery comes at the perfect time. “This opportunity allows us an expedited entry into the fast growing craft-spirits market not simply as a supplier more importantly as equity partner. It’s a win-win for the both of us. Arthur and his team have done a fantastic job with Napa Valley Distillery and all of its unique brands. They’ve pioneered and are dominating California’s direct to consumer spirits space and we’re thrilled to be able to help and be part of their continued growth and success.”

The craft spirits industry has grown to over 1,300 distillers in the United States, generating approximately $2.4 billion in retail sales in 2015 and posting a compound annual growth rate of 27.4% in volume. That sharp growth is far better than the broader industry as alcohol beverage consumers have been favoring smaller, and often local, options, a trend that first took hold in the beer world and is now extending to spirits.

Napa Valley Distillery was founded by husband and wife team Arthur and Lusine Hartunian in 2009 when the couple decided to pursue their passion for making unique spirits and craft cocktails.

Agajanian Vineyards and Wine Company is an ever growing merchant/negociant and vintner in the wine industry. Based in Madera, CA with their principal office in Napa, CA, Agajanian supplies hundreds of wineries and wine brands with the best WineGrapes, Premium Bulk Wines and Private Labels from all regions of California and the Northwest.

Meet and Explore Agajanian Vineyards at IBWS Show 2017. The International Bulk Wine and Spirits Show (IBWSS) is an annual trade show and conference which will give wineries, importers, supermarkets, retailers, restaurants, distilleries and other buyers a premiere international platform to source bulk wine and spirits and meet private label suppliers. Book now and save on exhibitor rates 

Source PRWeb : http://www.prweb.com/releases/2016/12/prweb13920718.htm

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Meet MGP : A leading Supplier of Premium Distilled Spirits at IBWSS

MGP

MGP

MGP is recognized across the country and abroad as a leading supplier of premium distilled spirits, as well as one of America’s top multi-line producers in the spirits industry. The company is also the largest U.S. supplier of rye whiskey, as well as distilled gin.

A core competency of MGP is the company’s expertise in helping customers create custom formulations. The company offers new distillate and aged spirits in railcar, tanker truck and tote quantities. Their extensive portfolio has continued to expand for today’s discerning tastes and currently includes:

  • Bourbons
  • Whiskeys
  • Gins
  • Grain Neutral Spirits
  • Non-GMO Grain Neutral Spirits

Based in Atchison, Kansas, where the company was founded in 1941, MGP also owns distillery operations in Lawrenceburg, Indiana. The company continues to consistently provide customers with premium products while maintaining state-of-the-art facilities and capabilities. Adding to this is MGP’s finely balanced mix of art and science, which is the cornerstone of their long history of success in helping customers meet evolving consumer tastes.

Among some of the more recent developments at MGP was the creation of four new distilled gins, each featuring a distinctive flavor profile. These include distilled orange, lemon-lime, citrus berry and cucumber gins.

MGP

MGP also embarked on a major warehouse expansion at their Lawrenceburg distillery, essentially doubling the facility’s whiskey maturation capacity.

MGP offers customers the ability to work onsite in a newly constructed distilled spirits innovation center. Located at the Lawrenceburg site, the center enables greater opportunities for customers to work closely with MGP in developing custom formulations unique to their individual brands. It also includes enhanced quality assurance and sensory labs, along with new conference and meeting space.

MGP

In recognition of the company’s growing prominence in the spirits industry, MGP was honored as 2015 Distiller of the Year by the prestigious trade publication, Whisky Advocate.

MGP

Meet and Explore MGP’s services at IBWS Show. The International Bulk Wine and Spirits Show (IBWSS) is an annual trade show and conference which will give wineries, importers, supermarkets, retailers, restaurants, distilleries and other buyers a premiere international platform to source bulk wine and spirits and meet private label suppliers. Book now and save on exhibitor rates 

 

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