Non-Compete Agreements in California

With the proliferation of wineries in California, it’s not uncommon for an owner to find one of its winemakers deciding to leave and set up shop on their own. Is there anything you can do up front to prevent them from taking the craft they’ve honed at your winery elsewhere? The short answer is, in most cases, no. But as with almost everything in the law, there are some exceptions you should know. California public policy strongly favors free and open competition in the marketplace. Business and Professions Code section 16600 states clearly that contractual restraints on competition or trade are void, except as otherwise provided. California courts interpreting this statute emphasize that it protects the right of Californians to pursue any business, occupation, or lawful employment of their choosing. Contract provisions which attempt to place restrictions on a person’s ability to work for a competitor, or open a competing enterprise, are generally unenforceable. That said, you should be aware of the “as otherwise provided” part of the Code. The primary exceptions to the prohibition on non-compete agreements apply to “owners” of a business and arise in the following contexts. First, if you are selling all of your ownership interest, or all of most of the operating assets together with the goodwill of the business, you can agree…

Going Green: Sustainability Certification in California

A few weeks ago, I attended the Unified Wine & Grape Symposium in Sacramento. One of the seminars I attended dealt with sustainability, a topic that seems to be popping up with increasing frequency in the wine industry. Sustainability is an interesting concept, primarily because it lacks any single definition or set of criteria. And, when it comes to certifying your wine as “sustainable” there are several programs to choose from. Wineries need to do their research to uncover the criteria for each certification program, and evaluate which program best fits their current practices and goals for sustainability. One of California’s main sustainability programs is the California Sustainable Winegrowing Program. It advances and provides resources for practices that are “environmentally sound, socially equitable, and economically viable.” Its certification program – Certified California Sustainable Winegrowing (CCSW Certified) – provides third-party verification of a winery’s implementation and ongoing improvement of nearly 200 sustainability practices/criteria drawn from a publication called the “California Code of Sustainable Winegrowing Workbook,” which is available for free to California vintners and winegrowers here. According to its literature and website, CCSW emphasizes conservation of water and energy, soil health, protection of air and water quality, employee/community relations, and the preservation of local ecosystems and wildlife habitat. Another third-party certified sustainable winegrowing program is Lodi Rules for Sustainable…

Social Media is Advertising: Know the Basics

There’s no question that social media is critical to marketing one’s product. For wineries, however, maintaining a social media presence comes with some serious restrictions. That’s because social media is considered advertising, and is subject to both federal and state regulations governing the advertising of alcoholic beverages. This post is intended to give you the basics on regulations governing the use of social media by wineries. It is, however, not exhaustive. If you have questions about whether something you want to post is permitted, it’s best to look into it or seek advice before posting, rather than risk an inquiry by the TTB or ABC. Federal regulations set forth both mandatory and prohibited content for any advertising. As for mandatory content, regardless of what social media platform you are using (i.e., Facebook, Twitter, YouTube, blogs, etc.), you must post the name and address of the permittee responsible for the advertisement. This information does not need to be repeated in each individual post, but should be readily accessible to anyone visiting the page. The best place to put this information is in the “About” or “Profile” section of the page. If you are posting about a specific product, your post is required to have “a conspicuous statement of the class, type, or distinctive designation to which…