More Counterfeit GAN EDEN found in California

[Craig Winchell]

As you know, I'm in the process of trying to start up a new winery operation, and potentially resurrecting the GAN EDEN brand name. Since a couple of years after I sold the winery facility and stopped producing GAN EDEN, while I was still selling some real GAN EDEN branded wines, counterfeits cropped up, sold out of the trunk of at least 1 car by (an) obviously unscrupulous individual(s). Obviously so, because wines were being sold of types I never produced (2000 Cabernet mevushal, when I only produced a nonmevushal), and obviously not truly under the supervision of the OU. And now, I received a call from the RCC yesterday, checking on the wine found in Livonia Glatt Market, some of which had obviously questionable labels. These are badly done matte labels, labeled GAN EDEN 2000 Cabernet Sauvignon, with white-out covering what is probably the word "mevushal". I did make a nonmevushal 2000 Cabernet Sauvignon, but the labels were glossy, and there was no white-out on them. I don't know what kind of cork these counterfeits are corked with, but the true 2000 Cab is finished with synthetic corks. Also, sales of the 2000 Cab are all accounted for, so this could not possibly be it. Also, the true 2000 Cab, as is true with all of my 2000 vintage wines, are probably oxidized beyond use for anything other than a Sherry substitute in cooking. Livonia also has some wine labeled GAN EDEN 2000 Chardonnay, according to the RCC representative. I have no idea whether it is real or counterfeit- I don't even remember whether I put out a 2000 Chardonnay, or whether I only put out a nonvintage at that time, but I'm told the labels are glossy, so it could be real. In any case, if it is real, it would be brown and oxidized as per my preceding statement, so if it isn't, one cannot trust the kashrus of it, at the very least.

It is truly flattering to be targeted by counterfeiters, but it is flattery I don't need at this time. GAN EDEN produced some spectacular wines in its time, hopefully will again, but these counterfeits are certainly in the way at a time when I'm trying to justify the existence of the brand name. Is it hurting or helping the brand? Bad wine certainly dilutes the value of a name. On the other hand, there's something special about being the only kosher brand of wine considered worthy of counterfeiting, and to my knowledge, GAN EDEN is indeed the only kosher brand to have been targeted that way. That raises the value of the brand, no? Thoughts?

[Andrew Breskin]

Imitation is the highest form of flattery? Really have to wonder what the motivation is here given that the wine is shot.

[Craig Winchell]

Hell, Andrew, if I knew that, I'd know what made these counterfeiters tick. But I think maybe it's that there are a lot of un-wine-savvy consumers around who don't know a wine is shot, or should be shot, and so these counterfeitors discovered they could get away with it with old wine-- after all, caveat emptor, while really, does it make sense for me to go after the perpetrators for wine which nobody in their right mind would be buying anyway? You could say it's a victimless crime, since the people who are taken in the ruse don't even know it, while I am not selling GAN EDEN wine right now anyway, and therefore won't expend the money to discover their identities and sue. And since it is probably not widespread, it doesn't pay for law enforcement to get involved in prosecuting for fraud, nor will the ABC or TTB be able to recover fines for fraud. Really rather brilliant, actually, if the fraud generates enough money to make it worthwhile.

[gaston k]

Craig - Since it looks like your TM registration for Gan Eden was canceled in 2009, that may have emboldened these counterfeiters to try and profit over your brand association. As the original trademark owner though, you should still retain the common law rights as the source of the kosher wine Gan Eden, and considering your plans to resurrect the business, policing the trademark in some fashion is probably worth considering. Just a thought.

[Craig Winchell]

Gaston, It's true that we never renewed the trademark, and it's also true that I am the de facto common law trademark owner, since until a couple of years ago, I still was actively selling GAN EDEN, and I plan to produce more within the requisite time. I have asserted my trademark ownership in several ways, one of which is by publicising the fraud on the GAN EDEN web site (which has continued to operate continuously) and, for example, this forum. I run into a problem though. If the perpetrator is Jewish, I'm relegated to acting through beis din, which is potentially expensive and potentially accomplishes nothing. When people were buying out of the trunk of the car, caveat emptor. Now that it made its way into a real market, it's more of a problem for me, as well as for kashrus. Since Livonia is a kosher market under supervision, though, the teeth are the fact that the kashrus agency will disallow the wine to be sold. I can call the store, but my rant will have little impact compared to that of the kashrus agency.

[Gabriel Geller]

Craig hi, shavua tov, First I'd like to say that I totally second your thoughts. I do believe that it is very flattering to have your brand getting counterfeit. Not only because it's the only kosher brand being a "victim" of the practice but also because usually that happens essentially, if not even only, to the best of the best from Bordeaux and Burgundy such as Lafite, Cheval Blanc, Romanee Conti and Petrus!

Second, I totally understand your concern regarding the kashrus issue, I mean if you can't trust people that steal your brand and counterfeit your wines, one can certainly not trust their kasrus and it might be some treif crap in the worst case.

I believe that for your own sake and your brand's, you should be in touch with RCC until at least the kashrus gets figured out.

Best, and hoping to taste newly made and released GENUINE great Gan Eden wines in a not-so distant future!

GG

[Craig Winchell]

Thanks so much. So far, one person seems to find the counterfeiting a net negative tot he brand, and one, if I am reading correctly, a net positive. No clear feeling. My personal feeling is coming down that I think it's a pretty big negative, both because of kashrus and because it doesn't really show what the brand is all about (but neither, in that case, do true GAN EDEN wines that are over the hill, because the unsophisticates don't understand that wine has a finite shelf life), but it is, as far as I know, isolated to the Los Angeles area and will dupe relatively few people. Still, I can still justify spinning it as a positive later on.

As far as genuine GAN EDEN (or any other wine brand) in the future, I'm running into a slight snag with my business plan, due to the high costs of custom production. Whereas I originally intended to produce it in my place of employment, deriving most of my income from the employment, I am coming to the conclusion that the facility is not stable enough infrastructurewise to provide for my wine, and I must do it elsewhere. And if I do it elsewhere, I must concentrate on it as my only project, and must derive 100% of my income from the project. That means the project must be much larger than originally conceived, and that means retaining others whose sole source of income is the project- cellar people (mashgichim), marketing people, etc., plus providing reasonable profit for the shareholders. A 15,000 -50,000 case per year project is a much more difficult to justify in today's economy than a 1500-5000 case project, because a larger project requires a lower average selling price per case- anyone can sell a couple hundred cases of $80 wine, but it's more difficult to sell a few thousand cases of $30 wine, and the sweet spot in the industry right now is under $15, which seems impossible for a kosher wine in a custom production environment. I can't develop a business plan based only upon wishful thinking. There must be a reasonable chance of success. So right now, I'm thinking that purchasing and refurbishing a dedicated facility is the only reasonable way to proceed. This project is going to require real money.