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A major California winemaker will have to change the name of popular vintages with hints of Oregon on his labels. The Federal Alcohol and Tobacco Tax and Trade Bureau ruled Friday that Napa Valley vintner Joe Wagner, who owns Elouan Winery and its Copper Cane Wines & Provisions parent, can no longer apply an Oregon label to his California wine. The TTB ruled Wagner must surrender nine labels — including Elouan and The Willametter — whose appropriation of Oregon ties caught the attention of the Oregon wine industry and state Legislature last summer. “The verdict is in — Elouan and The Willametter wines are deceptively labeled,” said Rep. David Gomberg, D-Otis, who chairs the House Economic Development and Trade Committee. “This is consumer fraud, pure and simple, and I am glad the federal agency has caught it.” Gomberg anticipates the Oregon Department of Justice and Oregon Liquor Control Commission will announce their findings this week. “I am hopeful we’ll get a ruling this week, and people will be talking about it over a glass of Oregon wine during Thanksgiving dinner,” he said. Despite the initial victory, Gomberg sees it as somewhat hollow because the TTB is allowing wine already on shelves and warehouses to be used up, rather than be recalled. “It’s good news on one hand, but it doesn’t fix the stuff that’s in the pipeline,” Gomberg said. “There’s more than 900,000 bottles out there. In the three years it takes to clear that stuff out, how much damage is that going to do to the Oregon industry?” In an Oregon Wine Press interview released Nov. 1, Wagner said The Willametter Journal is an exclusive brand for retailer Total Wine. “It’s a Willamette Valley pinot noir, but we don’t make the wines in Oregon,” Wagner said. “I like to do everything under one roof, so we layer in dry ice to keep the grapes chilled after we pick, and truck them to Rutherford, California. The TTB said we can’t appellate it as the Willamette Valley AVA because it’s made outside Oregon. So we went through many different versions of the label, appellated it as Oregon, bottled the wine and went on with our day. The TTB has gone through our books and seen all of our tags. We’re paying the same price for the grapes as everybody else; we understand that we can’t appellate it.” A few weeks later, however, the TTB saw things differently. Gomberg claims Wagner misled federal wine label reviewers when the Elouan and Willametter labels were approved. As a result, he argued, there should be no “use-up” allowance. While Oregon wines are required to be made from 100 percent in-state fruit, California only requires a 75 percent of the fruit to be from the Golden State. Gomberg said Elouan and The Willametter Journal look and taste like they have an additive in them that is legal to use in California but not in Oregon wines. Lodi pinots, mass produced in California, are often dyed with an additive called Mega Purple, concentrated from a grape variety called Rubired, Gomberg said. “We suspect that Copper Cane is adding something to the vintage down there to make it darker and thicker,” he said. Southern Oregon winemaker, Herb Quady, sees the agency's decision as a good thing for wine drinkers, who may not be familiar with regional variations. "Wine labeling laws are designed to protect the consumer and to communicate to them the type of wine that they will enjoy when they get home," Quady said. "It seems pretty clear that Copper Cane has pushed the boundaries of acceptability in regards to accurately labeling their wines, especially with regard to The Willametter wine, and I’m glad that the TTB has stepped in to enforce the laws." Nonetheless, Quady sees the value of providing California wineries with fruit that can't be replicated in hotter climates. "After adjusting the labels in their new vintages, (I hope) that they find success with their Oregon wines so that they can continue to purchase fruit from Southern Oregon and invest in our industry," Quady said. Ross Allen, president of Rogue Valley Vintners, said with many of the association’s members still working out contracts with Copper Cane, the organization wouldn’t make a formal statement. As co-owner and vineyard manager of 2Hawk Vineyard and Winery, Allen said, he is happy to see state taking action. “I applaud Rep. Gomberg for his dedication and passion for helping to protect our AVAs and the award winning wines produced here,” Allen said. John Pratt of Celestina Vineyard off Dark Hollow Road and president of the Oregon Wine Growers Association welcomed the federal agency’s decision. In light of the many vineyard contracts Copper Cane has with Oregon growers, Pratt thinks the renowned Napa Valley vintner will simply rework marketing efforts. “Oregon is a great place to grow pinot,” Pratt said. “I think Mr. Wagner will be able to find a more appropriate way to label his wine, and to use the excellent fruit grown in our state without violating labeling restrictions.” Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at @GregMTBusiness or www.facebook.com/greg.stiles.31.