Attention to and Influence on Alcohol Levels is Changing
Opinion Advocates for ideas and draws conclusions based on the author/producer’s interpretation of facts and data.
Last week’s column focused on truth in advertising on the labels of a wine bottle. Readers have asked how they might navigate through the maze of contradictory terms and definitions. There is no easy way. The granular information consumers may seek is included on a bottle at the whim of winemakers.
Several wine importers have addressed this issue. In their efforts to provide truth in advertising, they affix their own labels on the backs of many of their bottles. One such importer is Serge Doré Selections here in Westchester.
Back labels typically inform the consumer of the blend and composition of the wine, details on the terroir of the source vineyards, descriptive terms on the wine’s aroma and taste and other information to assist in making an educated choice. I find this practice very helpful in navigating the caveat emptor landscape.
Last week I promised additional information on the labeling for the alcohol content of wines. I read a highly cited study, published in the Journal of Wine Economics, which focused on the legitimacy of the stated alcohol percentage on bottles of wine from around the world.
After analyzing government data on measured alcohol in nearly 100,000 bottles of wine produced over an 18-year span, and then comparing these against the stated alcohol content on the bottle labels, they reported that there are discrepancies between the two sources. The major findings:
- Over the timeline of the wines analyzed, the average level of alcohol rose from 12.7 percent to 13.5 percent.
- The advertised alcohol content, on average, understated the actual levels by 0.42 percent.
What conclusions did they reach?
As for rising alcohol levels:
- A natural conclusion is to blame the increase on climate change. But the researchers rejected this popular notion as it applied to the specific wines and period analyzed.
Warmer temperatures tend to result in sweeter grapes, and sweeter grapes tend to result in more alcohol. However, according to the researchers, “…it would take a whopping 20-degree increase in the average temperature…to account for a 1 percentage point increase in the average alcohol content of wine.”
- The researchers concluded that the reason for the higher levels is winemaker preferences. It’s not nature, it’s man.
Winemakers are able to refine their alchemy (length of fermentation, tweaking of blending formulas) in order to successfully achieve a consistent flavor and aroma profile – and alcohol level – from one year to the next. The trending consumer preference for more fruit-forward wines has driven certain winemakers to manipulate their wines.
As for winemakers understating alcohol levels:
- The study concluded these misstatements were, and continue to be, deliberate – and legal in many cases. In the United States, regulations permit a 1.5 percent allowance for wines at or under 14 percent alcohol. This provides a margin within which winemakers may market to consumers who perceive that certain levels connote greater value and refinement. Ironically, winemakers freely admit to this legal practice, all in their efforts to preserve market share.
- The federal excise tax may be another reason. In the United States, winemakers are taxed on their wine production. Historically, the tax rate was $1.07 per gallon for wine with 14 percent alcohol or less, and $1.57 per gallon for wine with 14.1 percent to 21 percent alcohol.
However, in this era of tax increases and decreases, both temporary and permanent, the Tax Cuts and Jobs Act of 2017 lowered many taxes, from corporate to individual – and to the alcoholic beverage industry. For winemakers, the temporary, excise-taxing structure was a game-changer in two ways.
The threshold for the increased tax rate was raised to 16 percent.
A tax credit was enacted based on levels of production.
The impact of these changes on a typical winery (about 5,000 cases), producing wines of up to 16 percent alcohol, reduces the excise tax by a whopping two-thirds, from $1.57 to $0.57. These new formulae were made permanent last year, significantly increasing the financial incentive for alcohol manipulation.
Just as with many aspects of consumer products in the United States, the truth is whatever the regulators say it is. And as always, caveat emptor rules the day.
Nick Antonaccio is a 45-year Pleasantville resident. For over 25 years, he has conducted wine tastings and lectures. Nick is a member and program director of the Wine Media Guild of wine journalists. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
