You may have seen the recent story: Costco has recalled its Kirkland Signature Prosecco Valdobbiadene product in at least 11 states because bottles were at risk of shattering or “exploding,” even when unopened. VinePair. The recall spans bottles sold between April 25 – August 26, 2025. VinePair.
This kind of event is rare but extremely serious. Beyond the safety hazard and brand damage, there are legal and regulatory lessons for any wine company (or prospective wine brand). Below are some general considerations that wine brands may wish to keep in mind when evaluating potential risks and compliance obligations.
Product Safety & Quality Controls
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Bottling and packaging specs matter. Sparkling wines like Prosecco are bottled under pressure due to the presence of CO₂. The bottle strength, closure, cork, tooling, and caging (wire cage over cork) must all be able to withstand that pressure.
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Physical testing. Before scaling, winemakers should consider testing batches under stressed conditions (e.g., heat, vibration, and transport) to make sure bottles don’t fail.
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Traceability. Keeping good records is essential: which bottling line, which batch, what closure type, cork supplier, etc. In a recall scenario, the issue must be traced to the source.
Recall Risk & Liability
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Recall obligations. Under federal U.S. law, government agencies such as the FDA (for matters including food safety) or sometimes state authorities may require recalls. Even when not required, voluntarily recalling is often the product of duty of care and avoiding worse liability. Speak with your legal counsel to discuss possible redress.
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Product liability exposure. If consumers are injured (e.g., glass shards from bottles) or property damage occurs, there may be liability. Insurance can help—but insurance often depends on you having followed best practices and documented them. Cases like these are a good reminder to speak with and seek the advice of your insurance professional to determine what coverage may be required for your company and/or ensure if your current coverage is sufficient.
Contracts with Suppliers, Co-Packers, and Distributors
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Supplier contracts for materials should require specifications (for example, the pressure rating of bottles, quality of cork/closures), warranties, sample testing, and indemnity if defects from supplied components cause loss. Which party is responsible in the instance a part is faulty?
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Co-packer or bottling agreements likewise should define responsibilities clearly—who is responsible for packaging failures, who bears recall costs, etc.
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Distributor or retailer contracts may have clauses about product safety, returns, claims, and insurance coverage. Review with your counsel to ensure you understand any and all culpabilities.
Protect Your Brand Before a Recall Happens
The Costco Prosecco recall is a stark reminder that even one misstep in production, labeling, or quality control can trigger serious legal, financial, and reputational fallout. Protecting your brand means more than crafting great wine — it requires strong contracts, regulatory compliance, and a plan for managing risk.
For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.
DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.
