The Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. A violation of the act is generally a misdemeanor.

The act imposes specified labeling requirements for containers of alcoholic beverages sold within this state, including prescribed requirements for the use of appellations from specified geographic regions in California. The act generally provides that these labeling requirements do not preclude the use of a label containing a truthful, nonmisleading appellation of origin or geographic description that complies with federal appellation law, except as specified.

Existing federal law authorizes the use of the appellation “American” if at least 75% of the wine is derived from fruit or agricultural products grown in the United States, as specified.