Constellation named in French wine scam

Constellation Brands has been dragged into the furore surrounding the fake Pinot Noir scam.

Constellation’s name was on court documents involving the 12 French wine producers who were found guilty of fraud on Wednesday 17 February.

The US Alcohol, Tobacco, Tax and Trade Bureau confirmed that Constellation had bought an undisclosed amount of the adulterated Pinot Noir used by E & J Gallo for their Red Bicyclette range.

Gallo had bought roughly 20% of the 130,000 hectolitres exported by Sieur d’Arques to the US between 2006 and 2008.

A statement from the world’s biggest wine group said: "Constellation has every reason to believe that it received wine made from Pinot Noir grapes from Sieur d’ Arques during those years.

"The wine purchased during 2006-2008 also had the required French documents describing the product as Pinot Noir and was tested internally, after the French tribunal began its hearing, and was found to contain Pinot Noir."

The company confirmed that none of the wine bought during that period remains on the market.

The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) said it was not currently involved in the case as no fraud had, so far, been committed on US soil.

However, should it be alleged that E & J Gallo, Constellation and a third as-yet-unknown industry-leading company were aware of the fraud and went ahead with selling the product to US consumers, then the ATF would investigate, a spokeswoman told AFP.

Rupert Millar, 19.02.2010