Officials have deemed the wine produced by Ocean Fathoms as “not fit for human consumption.” The California wine company claimed that the Santa Barbara channel provided the perfect environment for ageing its wines, boasting about the unique characteristics of the Channel Islands’ environment and the abundance of underwater flora and fauna that attached themselves to each bottle. In 2017, Ocean Fathoms started submerging specially designed crates of its wine in the channel, retrieving them after 12 months and selling them for up to $500 each. However, the company did not obtain the necessary permits from the California Coastal Commission or the U.S. Army Corps of Engineers, rendering their actions illegal.

Not only did Ocean Fathoms lack the required permits, but they also sold their wine without a business license and an ABC alcohol sales permit. Additionally, the company collected taxes from each purchase but failed to pay the required taxes to the state. The U.S. Food and Drug Administration (FDA) deemed the wine “adulterated and not fit for human consumption.” Consequently, the Bureau of Alcoholic Beverages Control seized approximately 2,000 bottles of wine from Ocean Fathoms and destroyed them at a wastewater treatment plant in Santa Barbara. The glass bottles adorned with underwater flora and fauna were taken to a recycling center.

Ocean Fathom’s founders, Emanuele Azzaretto and Todd Hahn, reached a plea agreement to resolve the legal consequences. They pleaded guilty to three misdemeanors, including illegally discharging material into U.S. waters, selling alcohol without a license, and aiding and abetting investor fraud. As part of the agreement, they were required to pay $50,000 in restitution to an investor.

Santa Barbara County District Attorney John T. Savrnoch highlighted the complete disregard for consumer and environmental laws displayed by the individuals involved. The case involved multiple violations, leading to investigations by five state and local agencies. Savrnoch emphasized the importance of collaboration between different agencies and the commitment to holding companies and individuals accountable for violating consumer and environmental laws.

Despite the legal repercussions, Todd Hahn remains hopeful that Ocean Fathoms can make a comeback. He stated that the demand for their wine has never been higher, and with the proper permits, they could continue ageing their wines in the ocean. Hahn also mentioned the allure of Santa Barbara as a day trip destination. The perfect environment, as they had believed it to be, awaits their return.

To conclude, the story of Ocean Fathoms’ illegal wine production highlights the consequences of disregarding permits and licenses required by regulatory authorities. It serves as a reminder of the importance of accountability and the enforcement of consumer and environmental laws. The hope for a future comeback reflects the passion and determination of individuals in the wine industry.