When it comes to marketing, the concept of exclusivity has a way of inflating the cost of a product. According to The Drinks Business, a California winemaker named Ocean Fathoms discovered a way to offer customers a truly exclusive experience — one that the authorities didn’t take kindly to. The winemaker submerged wine under the ocean to ferment, resulting in unique coral reef-encrusted wine bottles. 

John Savrnoch, a district attorney for Santa Barbara, says that 2,000 bottles of wine and other alcohol were confiscated and disposed of. The business is owned by Emanuele Azzaretto, who is a diver, and Todd Hahn, a former talent agent. In a plea deal entered by the partners in July, they agreed to the destruction of the bottles, which are estimated to be worth thousands of dollars. They were also ordered to pay $50,000 to a former investor. 

Ocean Fathoms created underwater wine aging by using the optimal temperatures off the Santa Barbara coast. They say the approach reduces sediment build up with the help of ocean currents, which keep the contents in continual motion. According to the district attorney’s office, they began underwater fermentation in 2017, but Ocean Fathoms never secured the necessary permits from the California Coastal Commission or the U.S. Army Corps of Engineers. The bottles were submerged for a year before they were removed and sold for $500 each.

After analyzing the contents, the Federal Food and Drug Administration (FDA) said that the wine was, “adulterated, and not fit for human consumption, because it was submerged in the ocean and potentially contaminated.” Furthermore, it was sold without federal approved labelling, an alcohol sales permit, or a valid business license. Ocean Fathoms was also collecting sales taxes from customers without paying the state of California. On top of all of that, the company told buyers that a portion of the profits would be donated to a local environmental charity, but no records were found to verify that they were. 

“This case involved individuals who operated with complete disregard for our consumer and environmental laws. The California Coastal Commission referred the case to our Consumer and Environmental Protection Unit and, because of the broad scope of violations, we investigated with the help of five state and local agencies,” Savrnoch said. “The case highlights the importance of our office’s relationship with outside agencies and it demonstrates our commitment to holding companies and individuals accountable for violating all types of consumer and environmental laws.”