Much of the reason for this, according to Spencer, is that giant California-based wineries have been increasing their purchases of cheap foreign bulk wine, then blending it with vintages produced on either side of Highway 99, about 35 miles south of Sacramento.
Under Federal Tax & Trade Bureau regulations, the resulting blend can be labeled “American wine” if it contains no more than 25% foreign wine.
Ah crafty JCs at work. Shareholder value!