Who’s Afraid of 100% American Wine?

A simple standard is facing serious resistance. The real question is: who benefits from keeping it that way?

Should wine labeled “American” be made from American-grown grapes?

It’s a simple question. The answer should be equally simple.

This is a question of truth in labeling. It’s not just about the words printed on a bottle, but whether those words carry the meaning consumers believe them to. Today, a wine can be labeled “American” while containing up to 25 percent foreign-origin wine, imported into the United States in bulk, and blended domestically without any disclosure to consumers.

But AB 1585 is also about value and the concept of place. The value of “American” wine wasn’t built in bladders of foreign bulk shipped across the world. It was grown out of American soil by family farmers, farmworkers, and wineries over generations. The label should reflect that.

That’s exactly what Assemblymembers Damon Connolly and Rhodesia Ransom set out to do with AB 1585. The California Association of Winegrape Growers and Family Winemakers of California are co-sponsoring this bill because we believe, fundamentally, that “American” on a label should mean what consumers think it means.

Sixteen winegrape and wine associations across California have stepped forward in support, clear evidence that this bill is not dividing the industry, but drawing a line between those who would protect labeling integrity and the American wine brand, and those who benefit from its ambiguity.

Who Opposes Truth in Labeling?

The Wine Institute does. Its board voted to oppose the bill, raising concerns about flexibility, regulatory costs, timing, and market impacts. But those arguments don’t hold up under scrutiny.

CAWG has long partnered with the Wine Institute on many industry priorities, and our partnership continues on multiple fronts today. We value that relationship. But on issues where domestic grower interests diverge from importer interests, our organizations prioritize different outcomes. AB 1585 is one of those moments.

The Flexibility Argument

Opponents of AB 1585 argue that it removes “flexibility” for wineries, citing drought, wildfire, and supply variability as justification for maintaining the current 75 percent standard. Growers understand these realities acutely.

But “flexibility” is not a neutral concept. It benefits some at the expense of others. What is framed as short-term operational flexibility has, in practice, contributed to long-term erosion of equity and identity for California farmers.

AB 1585 doesn’t restrict a winery’s ability to import, blend, or sell wine. That option stays wide open. What it changes is whether imported wine can be presented to consumers as “American.”

For growers, “flexibility” is not an option. Vineyards are generational investments. When purchasing decisions shift away from domestic fruit, contracts disappear, grapes go unharvested, agricultural communities suffer, and there is no meaningful pivot. Some growers absorb the loss, others exit the industry entirely.

No industry can hollow out its foundation and expect the structure above it to hold. Yet that is exactly what opponents of AB 1585 suggest we continue to do.

No New Regulatory Costs

The Wine Institute warns of new enforcement mandates without new resources. They also argue AB 1585 would create a patchwork of labeling rules - a California standard out of step with the rest of the country; creating confusion for wineries, retailers, and consumers. Neither claim holds up.

California already has a different standard than the rest of the country. It’s called the “California” label. 100 percent California grapes, no exceptions, for decades. That standard is higher than federal requirements and it hasn’t created the legal chaos or market confusion threatened as all but a certainty with AB 1585. It has instead created one of the most trusted wine labels in the world. AB 1585 applies that same logic to the American designation.

No other major wine-producing country allows foreign wine to be blended into their national brand. Italy requires 100 percent domestic Italian wine. So do France, Spain, and Argentina. The United States is the outlier among premium wine-producing nations, and not in a good way. California loves to lead, but here we are not leading, but lagging.

From an enforcement standpoint, The California Department of Alcoholic Beverage Control already oversees wine labeling. The only thing changing is the number, from 75 percent to 100 percent. Think of it like adjusting a speed limit: the roads don’t change; the method of enforcement doesn’t change. Only the number changes.

Now Is Not the Time

The Wine Institute calls this, “the wrong fix at the wrong time.”

They said the same thing in 2009 when CAWG and its partners first petitioned the Alcohol and Tobacco Tax and Trade Bureau to amend the American appellation. The “right moment” never seems to arrive, which suggests “now is not the time” is what gets said when the real answer is too uncomfortable to give directly.

Here is what makes this the right moment. The California wine sector is under real strain: canceled contracts, grapes left unharvested, wineries closing, jobs lost, and local tax bases stressed. At the same time, imported bulk wine continues to enter the U.S. and can be blended into wines labeled as “American.” The truth is that domestic growers are being displaced as foreign wine is substituted in to reduce costs while still benefiting from the value of the American brand.

When foreign wine is blended into a product carrying the American name, the economic benefit does not flow where consumers reasonably believe it does. It bypasses American growers, and the communities behind them, while still trading on the strength and reputation of the American wine label. We can’t expect consumers to vote with their wallets, if we continue to mislead them about what they’re voting on.

Strong brands are built on authenticity, consistency, and integrity. Champagne got there through strict origin rules. California did the same with its 100 percent standard. The current federal rule does the opposite: it turns “American” into a cost-saving loophole for corporations instead of a mark of origin and pride for our domestic industry.

A First Step

When a consumer picks up a bottle labeled “American,” they believe they are supporting American farmers, American farmworkers, and American communities. That’s the promise in a label. Right now, that promise isn’t being kept.

AB 1585 is a simple correction. It aligns the label with what consumers already believe to be true, and with what every other major wine-producing peer already requires.

This bill alone will not fix everything. It won’t reverse market imbalances, restore lost contracts, or change the way the world drinks wine. But it is one step. It is the right step, and it is long overdue.

CAWG recognizes the real cost pressures of making wine and doing business in California. But this is an interconnected industry, and decisions that prioritize short-term savings come at the expense of the long-term health of the very industry we are all trying to save.

Thousands of growers and vintners across California stand behind this legislation, along with regional associations from Northern to Southern California. Unfortunately, not all who support this legislation are in a position to say so publicly. Many depend on business relationships with the same large buyers who benefit directly from importing and blending foreign wine under the American label. To speak out is seen by some as a threat to their livelihood.

That silence is its own kind of testimony, and it is exactly why this moment belongs to California’s legislators.

Which brings us back to the question at hand: if “American” on a wine label doesn’t mean American grapes, what exactly does it mean, and who benefits from that ambiguity?

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AB 1585 goes to committee this month, and the window to act is short. Contact your elected officials and urge them to support AB 1585 - because “American” on a wine label should mean what it says. Regional associations can join the coalition by contacting info@cawg.org.