Wine consumption in the United States has steadily increased over the past two decades. Wine has become an essential aspect of American culture. With over 7,000 wineries across the country, more people are demanding quality wines as purchasing power appears to be rising, and people have become more knowledgeable about wines. These wines are produced in designated areas across the United States. There are a series of regulations governing every element of the production process, from grape harvesting to marketing and labeling.
When the law "prohibiting" the consumption of alcohol was repealed in 1933, a three-tier structure was established. A middleman, such as a distributor or an importer, was required to stand between alcohol producers and customers. The goal was to give states more control over alcohol sales while raising tax revenue and encouraging moderation. This means that there is still a middleman between alcohol producers and restaurants or shops today.
According to the National Alcohol Beverage Control Association, which represents state control boards, the three-tier structure allows producers, distributors, and retailers in the alcohol industry to donate tens of billions of dollars to federal, state, and municipal governments.
Today, the federal government and various states regulate the wine industry and the alcohol sector. The Federal Alcohol Administration Act (FAAA) and the Internal Revenue Code (IRC) are the two statutes that govern vineyards at the federal level. The FAAA oversees issuing the essential permit, labeling, and advertising, and fair-trade practices in general. On the other hand, the IRC oversees approving premises, producing goods, and collecting taxes.
The Alcohol and Tobacco Tax and Trade Bureau (TTB), which is under the United States Department of Treasury, oversees the enforcement of these laws. The purpose of the TTB is to collect taxes and safeguard the public from harmful alcohol and tobacco consumption. The agency was established in 2003, pursuant to the Homeland Security Act (HAS) of 2002. In terms of public safety, the TBB upholds the provisions of the FAAA, which permit only qualified individuals to work in the alcohol beverage business.
The TTB is also in charge of enforcing alcohol production regulations, labeling, advertising, importation, distribution, wholesale enterprises, tobacco manufacturing, and importation.
The American Viticultural Area (AVA) is the designation for the grapes' growing region. The location of a winery is essential since the United States has a variety of climate conditions, soils, and crops, all of which influence the wine's quality and taste. When a winery associates with a specific region, they often imply that the wine has characteristics that are unique to that region.
The Augusta AVA in Missouri was the first federally recognized AVA. A different soil type existed in the area because of flooding. Hence, the region produced grapes with distinct characteristics. Using an AVA to create a wine gives buyers a sense of quality assurance and boosts sales as the wine is noted for being of superior quality.
At the request of wineries and other petitioners, the TTB creates new AVAs. There were 238 AVAs in the United States as of November 2016. Applicants must show that the grapes' growing circumstances and physical characteristics are unique to this place. The proposed area should also be well-known locally or nationally, with historical or present proof that the boundaries are valid and a US geological survey map showing the area's boundaries.
