Swipe, smile, blow: Pa. has wine vending machines

Bradley C Bower / AP

In this June 25, 2010 photo, Jacqueline Love purchases her first bottle of wine from the Pennsylvania Liquor Control Board’s self-serve wine kiosk at a Giant food store, in Harrisburg, Pa. (AP Photo/Bradley C Bower)

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CARCASSONE, France (AFP) – French wine-makers and dealers were convicted Wednesday of selling millions of bottles of fake Pinot Noir to the US firm E&J Gallo in one of the biggest scams ever to rattle the world of wine.

A court handed out suspended jail terms and hefty fines to 12 people for selling 18 million bottles (135,334 hectolitres) of wine they said was Pinot Noir but which was in fact made from far cheaper grape varieties.

The convicted included executives from wine estates, cooperatives, a broker, wine merchant Ducasse and the conglomerate Sieur d’Arques.

“The scale of the fraud caused severe damage for the wines of the Languedoc for which the United States is an important outlet,” the judge told a packed courtroom in Carcassonne in southwestern France.

He said that the accused made seven million euros in profits from the scam, with Ducasse raking in 3.7 million euros and Sieur d’Arques pulling in 1.3 million euros.

But the fines he imposed ranged from just 1,500 to 180,000 euros, while the suspended jail sentences went from one to six months.

The wine was sold in the United States under Gallo’s popular “Red Bicyclette” Pinot Noir label, which in 2006 was marketed as having “aromas of dark fruit flavors” and whose palate was said to be like “black cherry and ripe plum.”

It is not yet clear whether Gallo purchased the wine at a lower price than the market rate for Pinot Noir.

If so, they would have substantially increased their margins on a wine that sells for 11.99 dollars a bottle. Gallo was neither a defendant nor a plaintiff in the case in Carcassonne.

The giant wine firm has not yet said whether it plans to launch a lawsuit against the French producers in the wake of Wednesday’s judgement.

Meanwhile, US authorities are investigating potential infractions.

The Alcohol, Tobacco, Tax and Trade Bureau has been in discussions with the French authorities about the wine scam over the past year, a spokesman said, and will now review the court documents to decide whether to take any action.

The scandal broke in March 2008 when France’s fraud squad, the DGCCRF, became suspicious during an audit at the wine merchant Ducasse.

Ducasse had been buying Pinot Noir at 58 euros per hectolitre when the official market price was 97 euros, and generic local grape varieties were selling for 45 euros.

Meanwhile, the volume of wine from the renowned Pinot Noir grape being sold to Gallo far exceeded the possible supply from the region.

Ducasses’s own suppliers could have only filled two million bottles of Pinot Noir a year, and some of the boldest perpetrators of the scam do not even grow Pinot Noir.

After a year-long judicial investigation, the defendants were accused of substituting wine made from less expensive local grape varieties for the Pinot Noir, which is hugely popular on the American market.

Jean-Marie Bourland, a lawyer for Sieur d’Arques, did not rule out an appeal. “There is no prejudice. Not a single American consumer complained,” he argued.

Pierre Dounac, lawyer for three defendants including Ducasse’s director Claude Courset, argued that his clients had done no harm as they had delivered a wine with the characteristics of Pinot Noir.

The industry fears that the swindle, which began in 2006 and ended in 2008, could undermine the credibility of fellow French winegrowers.

“What worries me the most for my country are the economic consequences,” prosecutor Francis Battut told AFP during the trial.

“If Americans lose confidence in French wine production, particularly the Languedoc region, which is already going through a serious crisis, the consequences could be terrible.”

The wine trade is not new to fraud.

In 2007, French Beaujolais producers were caught dosing their wine with sugar, while in 2005, Sauvignon Blanc was doctored with fake aromas.

A 1985 case revealed that Austrians had spiced up their cru with a substance also found in antifreeze.

Just a quick note to thank EVERYONE who showed up to show us your support this past holiday season. I was in tears when writing/sending the last email and then was overwhelmed by the quick and HUGE response that we received from YOU! It has honestly, corny as it may sound, renewed my faith in human kind and our little Athens Community. YOU are what keep us open…please never underestimate your contribution to our little, cozy store that we see as home.

Okay, so that’s all I’m going to say on that note, but here are things that you should be aware of in the New Year:

• All accessories (including bags, shirts, and pretty much anything non-drinkable/non-alcoholic) are 10% off today (Wednesday) and tomorrow (Thursday). Take advantage while you can!
• We still have PLENTY of champagne…If you’re thinking it’s only a “holiday thing” you’re WRONG!!! Nothing’s better than treating yourself to a little bubbly. Don’t know if you’ve heard, but doctors are now saying that in addition to red wine being beneficial to your health, having a couple of glasses of sparkling a day are as well. YAY!
• What you say counts: Please help us by telling your friends, neighbors, family members that we are not only your premier wine store, but also boast the largest and best thought out selection of craft beers and imports as well.
• Anything you want, we’ll get (or at least we’ll try our hardest)! Special orders, whether one bottle or multiple don’t cost anything extra! Our store is small, so though we don’t have space for everything, we love your suggestions!
• Case discounts are always 10%

We love you and want to see you soon!

–
~Lili~
BellaVino
Athens’ Original Carryout
22 W. Stimson Avenue
Athens, OH 45701
“In victory, you deserve champagne, in defeat, you need it.” – Napoleon
(740) 593-5781
www.bellavinoathens.com
On Twitter @ BellaVinoAthens
Facebook: Friends of BellaVino

• Private Sampling of a selection of the wines of the month for members only
• Preview of products not available to the public included in your case purchase
• Free delivery on entire case purchases*
• Your choice! Each month you will receive your choice of one case (All Red, All White, Organic or Mixed). These wines are my favorites, up and coming and have already been previewed by me (tasting notes included)!

*For more information on deliveries, contact me directly J

Requirements to join:

• Cost for members is $149.99 which includes the aforementioned benefits and includes the 10% case discount & tax (credit cards must be kept on file; payment is required within two days of us recieving the product-if you pay with cash, check or other card, the credit card on file will not be charged).
• Minimum 30 day notice for cancellation

Benefits:

• Private Sampling of a selection of the wines of the month for members only
• Preview of products not available to the public included in your case purchase
• Your choice! Each month you will receive your choice of 6 btls (Pick one option: All Red, All White, Organic or Mixed). These wines are my favorites, up and coming and have already been previewed by me (tasting notes included)!

Requirements to join:

• Cost for members is $79.99 which includes the aforementioned benefits & tax (credit cards must be kept on file; payment is required within two days of us recieving the product-if you pay with cash, check or other card, the credit card on file will not be charged).
• Minimum 30 day notice for cancellation

That’s it! Simple, eh? Let me know if you’d like to sign up. The first shipment will be arriving soon!

Please feel free to contact me if you need more information or have additional questions!

*Shipping is not available