FOR RELEASE:  MARCH 12, 1991




  CANANDAIGUA WINE CO. AGREES TO ADVERTISING, PACKAGING CHANGES
                    FOR CISCO FORTIFIED WINE
                      TO SETTLE FTC CHARGES


     The maker of Cisco, a flavored wine product that contains as
much alcohol as five one-ounce servings of vodka, has agreed to
settle charges with the Federal Trade Commission that the packag-
ing, marketing and advertising of Cisco represent the product as
a wine cooler or other low-alcohol, single-serving drink, and
that this has led to cases of alcohol poisoning where victims
required hospital emergency care.
     Under a consent agreement announced today for public com-
ment, Canandaigua Wine Company ("Canandaigua") would be prohib-
ited from representing that Cisco is a low-alcohol product, from
implying that a bottle of Cisco constitutes a single serving, and
from encouraging retailers to display Cisco next to low-alcohol
products like wine coolers.

     The agreement also would require Canandaigua to change the
shape of the bottle so that its neck is more elongated, to change
the color of the bottle glass from clear to dark green, and to
recall retail displays implying Cisco is a single-serving
beverage.

     Cisco has been the subject of numerous recent news stories. 
In a January news conference, U.S. Surgeon General Antonia C.
Novello said of Cisco's current packaging, "It looks like a wine
cooler.  It smells like a wine cooler.  But it isn't."  Novello
has expressed approval of the new Cisco packaging, designed to
bring an end to what she called, "nationwide reports of alcohol
poisoning among teenagers."

                            -  more -

(Cisco--03/12/91)


     The FTC's complaint against New York-based Canandaigua
claims that the color and shape of the Cisco bottle resembles
that of other low-alcohol, single-serving beverages such as wine
coolers.  (Beverages are considered "low-alcohol" if they contain
less than 7 percent alcohol.)  Also, the complaint alleges, the
colors and flavors in which Cisco comes are similar to the colors
and flavors of many wine coolers.

     Promotional materials for Cisco suggest that it be sold
alongside similar bottles, according to the complaint, which
cites language in those materials such as, "[Cisco] comes
packaged in distinctive cooler-style bottles . . .," and, "The
key to selling Cisco is proper cold box storage."

     The FTC complaint further charges that advertisements imply
that a bottle of Cisco can be consumed as a single serving.  In
fact, Cisco is three to five times as potent as low-alcohol,
single-serving beverages.  One of the ads cited in the FTC
complaint -- a poster displayed in stores selling Cisco -- shows
a model holding and about to consume the contents of an opened,
full, 12.7 ounce bottle of Cisco.  

     In sum, the FTC complaint says, the packaging, marketing,
and advertising of Cisco represent that it is a low-alcohol
product that consumers can drink in quantities similar to other
low-alcohol products without increased risk of injury.  In fact,
the complaint charges, these representations are deceptive
because Cisco is neither a wine cooler nor a low-alcohol, single-
serving beverage, but rather a 20 percent alcohol product that is
three to five times as potent as low-alcohol beverages.  Further,
consumption of Cisco has resulted in consumer injury, the
complaint alleges.

     To settle the charges, Canandaigua has agreed to stop:

     -- representing that Cisco, or any other flavored product
     containing more than 14 percent alcohol, is a low-alcohol
     beverage;

     -- misrepresenting the package of such a product to be a
     single serving (unless it is packaged in a container of 100
     milliliters or less); and

     -- encouraging distributors and retailers to display such a
     product adjacent to low-alcohol beverages.


(Cisco--03/12/91)

     Canandaigua has agreed to change the shape and glass color
of the bottle for Cisco, and to begin shipping the product in the
new bottle and packaging after July 1, 1991, unless events beyond
its control delay repackaging.  The Surgeon General and the
Bureau of Alcohol, Tobacco and Firearms have approved the
proposed repackaging of Cisco fortified wines.  The settlement
with the FTC would become a binding agreement.

     Under the agreement, Canandaigua would also send a letter to
all distributors and retailers of Cisco asking them to stop
displaying promotional materials for Cisco that imply Cisco is a
single-serving beverage.  The letter would request that Cisco not
be displayed adjacent to any low-alcohol beverage and that,
instead, it be displayed with other fortified wines if the store
carries such products.

     The proposed consent agreement is subject to public comment
for 60 days, after which the Commission will decide whether to
make it final.  Comments should be addressed to the Office of the
Secretary, Federal Trade Commission, 6th Street and Pennsylvania
Avenue N.W., Washington, D.C. 20580.

     Copies of the agreement, the complaint, and an analysis of
the agreement are available from the FTC's Public Reference
Branch, Room 130, at the above address; 202-326-2222; TTY 202-
326-2502.

NOTE:  A consent agreement is for settlement purposes only, and
does not constitute an admission by the company that it violated
the law.  When the Commission issues a consent order on a final
basis, it carries the force of law with respect to future
actions.  Each violation of such an order may result in a civil
penalty of up to $10,000.

                              # # #

MEDIA CONTACT:      Bonnie Jansen, Office of Public Affairs
                    202-326-2180

STAFF CONTACT:      Judith Wilkenfeld, Division of Advertising
                    Practices, 202-326-3150

(File NO. 912-3008)
(Cisco)