FOR YOUR INFORMATION

We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.

“There comes a time” – Not only will this be the last issue of Notable Developments around the World during this calendar year, this will also be the last time that I will write these bulletins as I step down as Head of Secretariat of FIVS at the end of this month. It has been a tremendous privilege to lead this federation over the past 20 years and to be a part of the team that has rebuilt FIVS. I am proud of the fact that FIVS is now in the best shape – both financially and as a leading voice in the alcohol sector – since my involvement. I have been delighted to work with all of FIVS’s Presidents, the members of the Presidential Council, the FIVS working group/task force/committee heads, FIVS members, and, first and foremost, FIVS’s excellent staff – Laura Gelezuinas and Karen Geronimo.

I will continue to be involved in the sector, although in a different capacity, and I look forward to seeing many of you at future industry meetings and events. Meanwhile, I would ask all of you to welcome my successor, Julie Hesketh-Laird, when she begins work in February and doubtlessly leads FIVS to an even rosier future.

Bennett Caplan
Head of Secretariat
FIVS

European Union: Update on new labelling rules for wine – As discussed in the FIVS Alert of 04 December and as has been recently noted, recent European Commission guidance regarding the new labelling rules have created uncertainty in the trade. The Commission announced two weeks before the 08 December effective date of the new rules that the word “ingredients” should be used instead of the generic “i” used (and already printed) by wineries. The Italian Ministry of Agriculture issued a decree last week that postponed the introduction of new EC rules on wine labeling,  allowing for the use and exhaustion of the labels already in stock – taking this action to protect a critically important sector and to provide legal certainty for companies. This last-minute decree provides Italian producers a measure of relief by postponing the introduction of the EC legislation.  This decree apparently only applies in Italy; however a Franco-Spanish-Italian dialogue is exploring common action regarding this matter. In addition, the Comité Vins (CEEV) has asked for a suspension of the Commission’s guidelines on this matter pending talks to clear up the confusion.

European Union: Among other products, wine production may well decline in the decade ahead – The European Commission announced in a report on 07 December 2023 that the European Union is expected to produce less wine, along with meat and sugar, over the next decade as health, environmental, and animal welfare concerns discourage consumption. A trend in Europe towards drinking less wine is expected to lead to less production. Wine output may reportedly decline by approximately 7% by 2035, even though exports are likely to continue to rise albeit at a slower pace.

Global: WHO promotes higher taxes on alcohol – The WHO’s Department of Health recently released two documents – a new WHO technical manual on alcohol tax policy and a Global report on the use of alcohol taxes. The manual encourages countries to increase their excise taxes significantly in order to reduce the affordability of alcohol products, while charging the alcohol sector with oversimplifying alcohol taxes and having an inherent conflict of interest with public health objectives. The Global report contends that higher excise taxes will decrease the affordability of alcohol beverages, thereby reducing alcohol consumption and related harms. Key observations in the Global report also include that overall excise taxes are too low and have not kept pace with inflation, taxes are underutilised as an effective strategy to reduce consumption, and wine is exempted too often from alcohol taxes, particularly in Europe.

United Kingdom: Scottish government plans to propose “narrower” alcohol advertising restrictions in 2024 – The Scottish government has witnessed significant opposition to its new restrictions on alcohol marketing and has now agreed to explore embracing more limited measures. At the end of November, the government published the results of its consultation on restricting alcohol advertising and promotion. Alcohol interests argued that the original proposals would not reduce alcohol consumption and were ill-advised while public health groups contended the restrictions would be effective. The Scottish government will hold further talks next year focused on acceptable ways to limit the exposure of alcohol promotions to youth, while keeping in mind WHO recommendations to restrict alcohol marketing.

United States – European Union: Distillers urge lawmakers to cancel EU proposal for 50% tariffs on U.S. whiskey – A number of industries, including the distilled spirits sector, has advocated for de-linking punitive tariffs and unrelated trade disputes on steel and aluminum and large civil aircraft. Less than a month remains before retaliatory tariffs on spirits and other products linked to the U.S.-EU steel and aluminum dispute are reimposed, leading to uncertainty and instability for spirits and 90 unrelated sectors. The trade welcomed the suspension of these prohibitively high tariffs in 2021 for providing critical relief to the American whiskey sector. Exporting to foreign markets has become a key element in the growth of smaller brands, and the prohibitively high tariffs have stymied the growth of this segment. The spirits sector is urging U.S. and EU negotiators to suspend these debilitating tariffs further if they are unable to secure their permanent removal.

Global: Treating beer differently than other alcohol categories – The World Brewing Alliance (WBA) points out in this piece that the anti-alcohol movement claims that there is “no safe level” (NSL) of alcohol consumption, applying NSL equally to all categories of alcohol beverages. This article notes that banning all alcohol sales during prohibition in the United States was a failure, leading to the rise of organised crime, increased violence, and negative health effects. The WBA suggests that governments should instead introduce regulatory systems based on differences among beverage types, “nudging consumers toward products with lower concentrations of alcohol” by imposing more onerous restrictions on distilled spirits because they are cheaper to produce and stronger than beer and wine. This piece cites examples of countries that have placed heavier taxes on spirits, leading to the emergence of a beer-drinking culture with concurrent declines in mortality, heavy drinking, alcohol poisoning, alcohol psychoses, and cardiovascular diseases.

• The spirits industry begs to differ – The World Spirits Alliance (WSA) highlights its global government affairs approach, seeking the elimination of tariffs, non-tariff barriers, and discriminatory taxes – while maintaining fair, transparent and evidence-based regulation of distilled spirits; adequate excise tax regimes; and proportionate evidence-based public health measures for distilled spirits; while combatting of illicit alcohol.

United States: Phasing out Glyphosate – In November, Napa Green, a sustainable wine-growing certification body for Napa Valley vineyards, announced that its members must phase out the use of the herbicide glyphosate, the active ingredient in popular weed killer Roundup. The 90 wineries overseen by this nonprofit must replace glyphosate by 2026 and discontinue use of all synthetic herbicides by 2028. This move has proven controversial given glyphosate’s ability to remove weeds quickly and efficiently, but others are concerned by studies linking the herbicide to cancer.

NOTE: We make no warranty of any kind regarding the accuracy or completeness of the information in these FIVS Alerts; nor do we necessarily support or agree with views expressed or contained therein.

FOR YOUR INFORMATION

We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.

China: Government reviewing import measures on Australian wine imports – The Chinese government has reportedly begun to review its anti-dumping and anti-subsidy tariffs on Australian wine imports, apparently taking a key step toward improving their relationship with Australia. The review may well pave the way toward removing the prohibitively high duties introduced in 2021 that led to a dramatic decline in Australian wine exports to China.

Czech Republic: Winemakers press for MUP for still wine rather than increase in excise duty – Unlike other alcohol beverages, still wine in the Czech Republic has apparently long enjoyed an exemption from excise duties. But an economist at Trinity Bank recently asked, “Why should wine be excluded from the standard tax treatment and favoured over other alcoholic beverages, when even the consumption of alcohol in wine can catch cirrhosis of the liver, as well as the consumption of alcohol in beer or vodka?” The Czech Union of Winemakers reportedly has countered by pressing for a minimum unit price (MUP) approach based on the ethanol (alcohol) content in wine in lieu of the introduction of excise duties on wine, noting that many of the cheapest wines are imported. The wine group also argued that government revenues would increase as inexpensive wines became more expensive. However, the Czech Minister of Agriculture has reportedly suggested that an inter-ministerial working group, joined by experts, may now consider the MUP approach along with the introduction of new excise duties.

European Union: European Commission responds to calls by the trade relating to new wine rules – The wine sector and the European Commission (EC) continue to be at loggerheads over EC guidelines, published on 24 November 2023, on implementing new EU wine labelling regulations set to take effect on 08 December 2023. As reported in the FIVS alert of 27 November 2023, the Comité européen des entreprises vins (CEEV) called on the European Commission to modify guidelines for the new wine labeling laws, saying “We cannot accept a new interpretation, published 14 days before the date of application, that will imply, on the one hand, the destruction of hundreds of millions of labels already printed and, on the other, our incapacity to print new labels in time to comply with the new regulation deadline.” Labels prepared for the new laws reportedly include the letter “i” along with the QR code, but the Commission’s guidelines suggest that symbol is not sufficiently clear for consumers. The EC responded this past week, contending that its views were communicated clearly in September, adding that “Labels printed and already used on bottled wines and bottles placed on the market must not be destroyed, nor must bottled wines be relabeled, since all wines produced before December 8 are exempt from the new rules.” While this view provides some relief, other issues remain, such as what to do with labels produced for products to be released after 08 December 2023.

France: Senate considers adopting an MUP proposal – The French Senate reportedly is considering whether to follow Scotland’s minimum unit pricing (MUP) policy, seeking to curb the sale of alcohol beverages by increasing the price of the cheapest bottles. As part of its 2024 budget review, several senators reportedly want to introduce floor prices for alcohol beverages based on their alcohol content. Their measure would be aimed in particular at beer and inexpensive spirits and wines, beverages that are allegedly more widely consumed irresponsibly.

United Kingdom: Independent brewers urge government to increase the threshold for “alcohol-free” beer from 0.05% to 0.5% – Following the UK government’s decision to consult with the alcohol beverage industry on the definition of alcohol-free and whether to raise its definition from the current level of 0.05% to 0.5%, the Society of Independent Brewers (SIBA) has reportedly responded that redefining the “alcohol-free” classification would both help small brewers and provide clarity for the sector, bringing the United Kingdom in line with the European Union and the United States. The Society contends that a 0.5% ABV for low- and no-alcohol labelling descriptors would reduce the level of complexity and assist small independent brewers who might otherwise not be able to enter the market due to specialised and expensive brewing equipment needed to comply with a 0.05% limit.

• WSTA – As reported in FIVS’s Notable Developments Alert of 15 August 2023, The Wine and Spirit Trade Association (WSTA) developed the UK’s first low- and no-alcohol guides to address the confusion surrounding alcohol beverages with less than 0.5% ABV. At that time, WSTA Chief executive Miles Beale pointed out that clarity and consistency of government descriptors would support the Government’s stated aim of growing the no and low drinks sector. The WSTA has advocated for increasing current descriptors of alcohol-free beverages in the United Kingdom from 0.05% to 0.5%, to provide consistency for trade with European markets.

Global: IARC issues handbook on cancer – On 29 November 2023, the International Agency for Research on Cancer (IARC) launched the latest in its handbooks on cancer prevention, Volume 19: Oral Cancer Prevention. Researchers and other health experts described the handbook during a recent webinar co-organised with the World Health Organization. The report says that oral cancer “is the 16th most common cancer type worldwide and is a common cause of cancer death in men across much of South and South-East Asia and the Western Pacific” and attributes its cause primarily to tobacco smoking and alcohol consumption.

Ireland: Curbs on alcohol ads on TV/radio beginning in January 2025 – Ireland’s Department of Health has reportedly confirmed that advertising of alcohol beverages on television will be banned from 3 a.m. until 9 p.m. beginning on 10 January 2025. Advertising will also reportedly be banned on Irish radio on weekdays. The measure is intended to reduce the exposure of children and young people to advertisements for alcohol products.

Japan: Breath-testing will reportedly be required for some drivers – New legislation will reportedly now require certain drivers in Japan to use an alcohol breathalyser “at the time of commuting to work and at the end of work or leaving work.” Drivers will also be obligated to make certain that their devices remain active and are in good working order.

NOTE: We make no warranty of any kind regarding the accuracy or completeness of the information in these FIVS Alerts; nor do we necessarily support or agree with views expressed or contained therein.

FOR YOUR INFORMATION

We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.

China: Southwest province producing ice wines – This article describes the growth of the ice wine sector in Yunnan Province, which it says has “reached a significant scale” after ten years of development, revitalising that mountainous region and boosting the income of farmers there.

European Union: New EU labeling laws for wine take effect on 08 December 2023 – This European Commission Notice (C/2023/7808) provides technical answers (French version here), discussed with experts from EU Member States, to questions that the Commission has received on the implementation of new European Union wine labelling provisions following the amendment of Regulation (EU) No 1308/2013 of the European Parliament and of the Council and Commission Delegated Regulation (EU) 2019/33. The document was intended to assist national authorities and businesses in being able to comply with this EU legislation. Significantly, the Commission Notice notes that only the Court of Justice of the European Union is competent to authoritatively interpret Union law.

• CEEV calls on EC to modify guidelines, or destruction of newly printed labels may be necessary – Comité européen des entreprises vins (CEEV) has called on the European Commission to modify guidelines for the new wine labeling laws, saying “We cannot accept a new interpretation, published 14 days before the date of application, that will imply, on the one hand, the destruction of hundreds of millions of labels already printed and, on the other, our incapacity to print new labels in time to comply with the new regulation deadline.” Labels prepared for the new laws reportedly include the letter “i” along with the QR code, but the Commission’s guidelines suggest that symbol is not sufficiently clear for consumers.

European Union – New Zealand: European Parliament approves free trade agreement – The European Parliament has approved the New Zealand – European Union Free Trade Agreement. New Zealand’s Minister of Trade expressed hope that the agreement, which would remove tariffs on wine products, might enter into force “as early as the first half of 2024.” The agreement was signed on 9 July 2023 in Brussels.

Germany/Czech Republic/Greece: VAT/alcohol tax rates increasing in 2024 – Germany will increase the value-added tax (VAT) rate on “food taken away” from restaurants and cafes and for catering to 19% in 2024. The rate was temporarily reduced to 7% to offer relief to businesses during the pandemic. The German hotel and restaurant sector has warned that the increase will result in “a wave of bankruptcies.”  The Czech Republic’s President has reportedly signed legislation establishing two VAT rates (12% and 21%), moving draft beer to 21 percent. That country‘s alcohol consumption tax will be raised 10% in 2024 and an additional 5% in 2025.  And Greece will increase its VAT rate for no-alcohol beer and soft drinks from 13% to 24% on 01 January 2024.

Japan: Proposing GI protection for Single Malt Welsh Whisky from UK – Japan’s National Tax Agency has reportedly proposed to recognise Single Malt Welsh Whisky as a geographical indication alcoholic beverage from the United Kingdom. The agency will accept public comments on the proposal through 01 December 2023. Further information can be found HERE.

United Kingdom: Alcohol duty to be frozen until August 2024 – Britain’s Chancellor has announced his decision to freeze duty on all alcohol beverages – including beer, cider, distilled spirits, and wine – until 01 August 2024. The Wine and Spirit Trade Association (WSTA), which responded to news of the freeze as a “huge relief,” reported that the previous duty increase on 01 August 2023 “resulted in a 20% decline in spirit sales and a double-digit drop in wine.”

Netherlands: Connection for alcohol interlock device required for newly registered cars by July 2023 – Netherlands reportedly will require the installation of plugs to which alcohol interlock devices can be connected in all newly registered cars by 07 July 2024. The use of alcohol-sensitive immobilisers is apparently used in Sweden and Finland, where bus, taxi, and truck drivers blow into the devices before beginning work.

United Kingdom: Advertising authority issues guidelines for no/low alcohol beverages – The Advertising Standards Authority, the UK’s independent advertising regulator, and its sister organisation, the Committee of Advertising Practice, have reportedly issued new rules and guidance for beverages with an ABV of 0.5% or less, which will take effect on 14 May 2024.

Canada: British Columbia grape production fell by 50% due to extreme weather – The head of Wine Growers British Columbia reports that weather events, including drought, record-low temperatures with heavy snow, and floods, reduced grape production by 50 percent in 2023. The organisation estimates that 29% of their total acreage will require replanting.

Global: Hops/barley production threatened by climate change – Researchers warn that climate change – with its excessive heat, drought, and unpredictability – is causing conditions under which the cultivation of hops and barley will become “increasingly difficult.” A study accounting for nearly 90% of hop-growing regions published in Nature Communications  projected that production of hops in the Czech Republic, Germany, and Slovenia will fall by 4 – 18% by 2050. The researchers have called for “immediate adaptation measures to stabilize an ever-growing global sector.”

NOTE: We make no warranty of any kind regarding the accuracy or completeness of the information in these FIVS Alerts; nor do we necessarily support or agree with views expressed or contained therein.

FOR YOUR INFORMATION

We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.

European Union: OIV/ AIDV webinar on 17 November on new EU labeling regulations – Ignacio Sánchez Recarte and Rein-Jan Prins, joined by Theodore Georgopoulos as moderator, will speak during a webinar hosted by the International Organization of Vine and Wine (OIV) and the International Society for Vine & Wine Law on new labeling regulations on wines marketed in the European Union, which will take effect on 08 December 2023. The webinar will address such questions as: which information should be printed; what can be displayed on-line and how; are all wines concerned; who is responsible in case of failure of connecting to the Internet; from what year should these regulations be applied; and what happens to wine produced prior to the date of entry into force of the regulations? Registration and other information regarding the 17 November 2023 webinar can be found HERE.

Australia – China: Reconciliation is “advancing, but with limits” – While Australia’s prime minister traveled to China for a three-day visit with China’s President Xi, this article suggests that reconciliation between the two countries is “advancing – but with limits.” Australian exports of barley, coal, and timber are resuming, and exports of Australian wine and lobster may follow within months. But this article reports that 75% of Australians express concern that China may threaten Australia militarily within the next 20 years.

Czech Republic: Alcohol consumption tax to increase 10% in year 1 & 5% in year 2 – The Czech Republic’s Senate has reportedly approved a set of tax changes to increase government revenue by approximately 150 billion koruna (US$6.5 billion). The tax package will reportedly increase the Czech Republic’s alcohol consumption tax by 10% during the first year and an additional 5% during the following year. The legislation reportedly will also move draft beer to a higher value added tax rate category of 21%, but the package reportedly does not include still wine.

Global: OIV reports wine production fell in 2023; France now largest producer – The International Organization of Vine and Wine’s publication, World Wide Wine Production, reports that wine production fell by 7% during 2023 due to extreme weather conditions, including early frosts, heavy rainfall, and drought. France reportedly became the largest producer in 2023, replacing Italy whose production fell by 12%. Production levels also fell in Uruguay by 34%, Brazil by 30%, Australia by 24%, Argentina by 23%, Chile by 20%, and South Africa by 10%. The OIV also reported that production has risen in New Zealand and the United States, but noted that China’s production figures had not been available and could increase total production numbers for 2023.

Global: Shares in Spirits Companies Drop – At the end of last week, the share prices of several significant drinks companies dropped in conjunction with news that Diageo’s operating profits will slow because of a sales slump in Latin America and the Caribbean. This news was accompanied with reported fears of a global deceleration in growth, as well as consumers trading down to less expensive brands, attributed to more difficult trading conditions since the summer.

Singapore: Singapore recognizes geographical indication of Prosecco – Singapore has reportedly recognised Prosecco as the geographical indication of Italy.

United States: Beer sector opposing “rum cover-over” tax benefit – This article discusses tax disputes “heating up” between the beer and distilled spirits industries, including current efforts of the beer sector which is reportedly lobbying the U.S. Congress not to include renewal of the “rum cover-over” tax benefit for Puerto Rico and the U.S. Virgin Islands in Congress’s year-end tax package.

European Union: MEPs approve report advocating stronger measures to lower NCD risks – Members of the European Parliament adopted a report prepared by its Subcommittee on Public Health – reportedly with 63 members supporting the report, two opposed, and five abstaining – proposing stronger measures to lower the risk of non-communicable diseases, including harmful consumption of alcohol beverages. The report is expected to be adopted in plenary in December 2023.

Global: OECD says even low alcohol consumption increases risk of heart diseases, certain cancers – The Organisation for Economic Co-operation and Development’s publication, Health at a Glance 2023, provides a comprehensive set of indicators on population health and health system performance across OECD members and key emerging economies. Their latest publication says that “[a]lcohol use is a leading cause of death and disability worldwide, particularly among those of working age” and that high levels of consumption is “a major risk factor for heart diseases and strokes, liver cirrhosis and certain cancers, but even low and moderate alcohol consumption increases the long-term risk of these diseases.”

Vietnam: National Assembly committee rejects BAC proposal – The National Defense and Security Committee of Vietnam’s National Assembly reportedly rejected a proposal to introduce “an absolute ban on alcohol levels” for drivers, as “not really compatible with culture, customs, and practices.”

NOTE: We make no warranty of any kind regarding the accuracy or completeness of the information in these FIVS Alerts; nor do we necessarily support or agree with views expressed or contained therein.

FOR YOUR INFORMATION

We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.

Australia – European Union: Free trade agreement talks stalled – “Hopeful that one day we’ll be able to sign a deal that benefits both Australia and our European friends,” Australia’s Trade Minister did not meet in Osaka as planned with EU negotiators to finalise a free trade agreement. The EU Ambassador to Australia reportedly said, “there was optimism that a deal was within reach.” Unresolved issues reportedly include the EU’s position regarding protection of geographical indications for products including prosecco, parmesan, and feta.

India: Alcohol beverage market estimated to reach $64 billion in 5 years – According to a study by the International Spirits and Wine Association of India, the size of Indian’s alcohol beverage market may expand from $52.4 billion in 2021 to $64 billion within five years.

Sweden: Systembolaget’s sales volume & profits fall in Q3 2023 – Although the Swedish government-owned retailer Systembolaget’s net sales rose by 1.7 percent during the third quarter of 2023, the volume of its sales fell by 3 percent. E-commerce sales grew by 2.5 percent, reportedly due to price increases. The company’s profits fell by about 21 percent during the third quarter.

Australia: Medical groups support expanded health warnings/wine sector expresses concern – As Australia’s Assistant Minister for Health and Aged Care seeks input on raising “consumer awareness of the harms associated with alcohol,” the Australian Medical Association and the Royal Australian College of General Practitioners have reportedly asked for expanded health warnings on alcohol beverage labels. Wine producers have reportedly responded with concern – noting that health labels on alcohol should be “well planned before implementation” and should be “treated in the broader context of the alcohol conversation,” perhaps including “a base price on alcohol because that is where . . . the health implications are.” A pregnancy health warning including a silhouette of a pregnant woman and a red prohibition sign on alcohol bottles became mandatory on 01 August 2023.

Poland: Actors & influencers face charges for advertising wine/spirits online – The Warsaw-Śródmieście District Prosecutor’s Office has filed four lawsuits, seeking the invalidation of influencer agreements and the forfeiture of approximately PLN 800,000 (about US$193,000) in earnings related to the national alcohol law which bans advertising alcohol beverages, other than beer, online. Defendants include 15 individuals – those celebrities who advertised alcohol, as well as those individuals who commissioned the advertising of wine and distilled spirits.

United States: Development of breathalyser technology to detect drink driving proving difficult – This article reports that “the automotive industry is scrambling” to develop breathalyser technology required by the U.S. Infrastructure Investment and Jobs Act, which became law in November 2021, for new cars produced beginning in 2026. A Japanese company reportedly is developing a device that would determine the alcohol content of driver’s breath by requiring drivers to exhale before turning on their cars, using a sensor on the side door trim or steering column. A Swedish company is reportedly developing new technology as well. Although this article suggests that the U.S. Infrastructure Investment and Jobs Act mandates that all new cars must have breathalysers by 2026, the legislation established a rule requiring new cars to be ““equipped with advanced drunk and impaired driving prevention technology” without specifying what new technology will be required.

• United States: First MADD campaign (ToGetThere) launched in 30+ years – The nonprofit Mothers Against Drunk Driving (MADD) has launched its first campaign – ToGetThere – in over 30 years, timed to coincide with the approach of the holiday season. Instances of drink driving in the United States are reportedly expected to increase by 40% from 01 November 2023 – 01 January 2024. According to the U.S. National Highway Traffic Safety Administration, an individual is killed or injured due to drink driving every 79 seconds.

United States: Use of GM yeast debated by U.S. beer sector – This article discusses the use of genetically modified yeast to brew beer, which is an issue “hotly debated within the global beer sector.”

• United States: Study demonstrates need to prioritise food safety plans for no alcohol beer – Results of a study conducted at Cornell University, “Survival of Foodborne Pathogens in Low and Nonalcoholic Craft Beer,” published in Journal of Food Protection, showed that nonalcoholic beers allowed for pathogen growth and survival, as opposed to the low-alcoholic ones. E. coli O157:H7 and S. enterica grew approximately 2.00 log at 14°C, but no growth was observed at 4°C. L., showing that storage temperature is critical in preventing the growth of pathogens and demonstrating the need for beverage manufacturers to prioritise and maintain food safety plans along with practices specific to low- and nonalcoholic beer manufacturers.

Spain: Study suggests climate change will threaten production of Sherry – A study, “Impact of climate change on sustainable production of Sherry wine in nearly-zero energy buildings,” conducted at Universidad Politécnica de Madrid and published in Journal of Cleaner Production, suggests that temperature increases predicted for the middle of the century may endanger the economic sustainability of regions dedicated to producing Sherry.

NOTE: We make no warranty of any kind regarding the accuracy or completeness of the information in these FIVS Alerts; nor do we necessarily support or agree with views expressed or contained therein.

FOR YOUR INFORMATION

We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.

Global: FIVS London meetings on environmental sustainability conclude – The conference co-hosted by FIVS and the Wine and Spirit Trade Association (WSTA) held in London on 25 October 2023 addressed key environmental sustainability issues, including “farm to fork” initiatives, efforts to mitigate carbon footprints, how the investment community views sustainability efforts, and innovations in packaging technologies. Internal FIVS sessions held the following day, involved fruitful sessions led by its working group, committee, and task force chairs, focusing on health, nutrition, and ingredient labelling; fire impact; and the activities of key international organizations.

• Following the conclusion of the meetings, Jim Trezise, President of WineAmerica, commended FIVS, which he characterised as the organisation “protecting the worldwide wine industry.”  He noted that FIVS leaders and members saluted FIVS Head of Secretariat Bennett Caplan during a gala dinner that concluded the meetings as he transitions to a new role at year’s end.

Australia – China: China announces expedited review of its tariffs on Australian wine – The Chinese government reportedly will undertake an “expedited review” of its tariffs on Australian wines in advance of plans for the Australian prime minister’s meeting with China’s president and premier in Beijing on 04-07 November 2023.

European Union – United States: EU tariffs on U.S. whiskey may double to 50% in January – Because an agreement was not reached during the EU-U.S. Presidential Summit, EU tariffs on American whiskey are still scheduled to double to 50% on 01 January 2024. The European Union imposed a 25% retaliatory tariff on American whiskey in June 2018 after the Trump Administration imposed tariffs on steel and aluminum, causing exports of American whiskey to fall by 20 percent. In October 2022, the Biden Administration reached an agreement with the European Union to suspend the EU tariffs on American whiskey for two years, beginning on 01 January 2022. Negotiations are of course on-going.

Canada: Formation of Canadian Association for Responsible Drinkers (CARD) to provide unbiased information – An alliance of industry groups and others have formed the Canadian Association for Responsible Drinkers (CARD) http://www.cafrd.ca whose mission is to provide information that encourages responsible consumption and reduces harmful consumption of alcohol beverages. The group’s website contains commentary on a report issued by the Canadian Centre on Substance Use and Addiction (CCSA), which states that “there is no safe level” of alcohol consumption. Additional resources including media interviews can be found here.

Japan: Ministry of Health releases draft of Japan’s first guidelines for healthy drinking – Japan’s Ministry of Health, Labor and Welfare reportedly released a draft of Japan’s first “Guidelines for Healthy Drinking,” following discussions during the Ministry’s Conference on Alcohol-related Health Problems. The draft guidelines reportedly recommend “reducing the amount of alcohol consumed as much as possible.” The group reportedly debated whether guidelines could “give a misunderstanding” if it were to suggest safe levels of consumption for men and for women – for example by “saying that it is safe for men to drink up to 40g of pure alcohol per day, and up to 20g for women, which is just at the edge of the risk index.” The article suggests that the Japanese Ministry is responding to the World Health Organization’s work on alcohol-related issues and its adoption of the Global Strategy to Reduce the Harmful Use of Alcohol.

South Africa: Social Development Ministry calls for review of Liquor Amendment Bill to raise drinking age, ban ads on social/small media – South Africa’s Social Development Minister reportedly said the government intends to review the Liquor Amendment Bill, which would increase South Africa’s drinking age to 21; limit the sale of alcohol beverages to locations more than 100-metres from education and religious institutions; ban the advertisement of alcohol on social and small media; and introduce a liability clause for those who sell alcohol. The legislation was originally introduced in 2016. The Minister reportedly said that “alcohol is one of the most abused substances that causes the most harm to the most people in our country.”

Uganda: Health Ministry anticipates introduction of legislation to limit availability of alcohol and packaging sizes – The Ugandan Health Ministry reportedly stated that more than 7.4% (1.2 million) Ugandans above the age of 15 are affected by Alcohol Use Disorder, which reduces their ability to control their consumption of alcohol despite negative impacts on their well-being. The Ministry cited a study conducted in Mbale, reportedly showing that 25% of children, ages 6 to 13, consume alcohol beverages. The article says that the government anticipates the introduction of legislation that will limit the hours during which alcohol may be sold, as well as the locations, and that will regulate small packaging sizes that “are enticing young people to consume alcohol.” The article states that the World Health Organization has said the situation in Uganda is “a pressing issue requiring immediate attention.”

United States: Consumer Reports offers tips on “how much alcohol is okay for you” – Although Consumer Reports observes that the World Health Organization declared that “when it comes to alcohol consumption, there is no safe amount that does not affect health,” this lengthy article notes that “your risk of adverse health effects may be small, depending on your health situation.”

European Union: Committee amends PPWR/wine falls outside reforms – The European Parliament’s Committee on Environment has reportedly amended the Packaging and Packaging Waste Regulation (PPWR), which includes the entire life cycle of packaging from raw materials through final disposal. A final vote is expected during the second November 2023 plenary session. Wine is reportedly the only alcohol beverage that falls outside the reforms.

NOTE: We make no warranty of any kind regarding the accuracy or completeness of the information in these FIVS Alerts; nor do we necessarily support or agree with views expressed or contained therein.

FOR YOUR INFORMATION

We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.

Global: FIVS London Meetings on 25-26 October 2023 – FIVS and the Wine and Spirit Trade Association (WSTA) are co-hosting a conference in London on 25 October 2023 that will feature experts addressing key environmental sustainability issues. Discussions will include “farm to fork” initiatives, efforts to mitigate carbon footprints, how the investment community views sustainability efforts, and innovations in packaging technologies. Internal FIVS sessions will be held the following day, focusing on FIVS’s work on topics such as health, nutrition, and ingredient labelling; fire impact; and the activities of key international organisations.

• This article notes that Wine Institute Vice President of Environmental Affairs Allison Jordan will serve on a panel addressing key issues for producers during the London meetings, and that Sonoma County Winegrowers President Karissa Kruse will lead a wrap-up discussion focusing on future directions for the industry.
• President of WineAmerica Jim Trezise wrote a piece in Perspectives, noting that “FIVS is a vital organization for the wine industry worldwide” and that the issues discussed in the London meetings “can have major implications for the business climate in the United States.”

Spain: FIVS represented at Lifestyle, Diet, Wine and Health Congress In Toledo  – On 18-20 October 2023, Karen Geronimo, who manages FIVS’s social sustainability activities, attended the first session of the Lifestyle, Diet, Wine and Health Congress in Toledo, where leading experts presented the most recent scientific evidence on the consumption of alcohol and its effects within a healthy and balanced diet – agreeing that the consumption of wine in moderate quantities can help reduce the risk of cardiovascular disease.

Australia – China: Chinese tariffs on Australian wines may soon end – China’s Ambassador to Australia has reportedly indicated that China expects “more positive outcomes in the coming likely weeks or months” regarding punitive Chinese tariffs on Australian wine. Australia’s Trade Minister may visit China in November, and Australia’s Prime Minister may visit China in December.

European Union – United States: EU tariffs on U.S. whiskey could double from 25% to 50% – Distilled Spirits Council of the United States (DISCUS) President & CEO Chris Swonger notes that if EU-U.S. negotiators do not reach another agreement regarding the 25% retaliatory tariffs imposed by the European Union on American whiskey during the Trump Administration by 31 October 2023, those tariffs will double to 50 percent.

• A U.S.-EU Summit Joint Statement issued on 20 October 2023 indicated that substantial progress has been made during the past two years and that the negotiators “look forward to continuing to make progress on these important objectives in the next two months.”

United Kingdom: Government may allow no/low wine to be marketed as “wine” in 2024 – The UK government reportedly expects that it will change its legal definition of wine, lowering the minimum ABV to 0% for all types of wine in 2024, which would allow the marketing of no/low alcohol wines as “wine” in England. Wine and Spirit Trade Association Policy Director Simon Stannard observed that “further description” would be required to maintain the confidence of consumers.

Australia: Groups call for health warning labels on wine/beer – The Australian Medical Association (AMA), the Royal Australian College of General Practitioners (RACGP), and the Foundation for Alcohol Research and Education (FARE) have reportedly called on the Australian government to include health warning labels on wine bottles and beer bottles, cans, and casks, “warning of the risk of liver disease, cancer, heart disease, poor mental health, injury and alcohol poisoning.”  

Global: IARD’s report/toolkit re prevention of underage drinking – The International Alliance for Responsible Drinking (IARD) has launched this report, Actions to prevent underage drinking, and toolkit highlighting the actions that its members are taking to prevent underage drinking locally, nationally, and globally. Underage consumption of alcohol beverages has fallen or remained at the same levels since 2010 in 75% of 65 countries where data is available, and fallen in half of those countries.

United States: CBS News reports on direct association between alcohol and breast cancer risk – A Johns Hopkins Kimmel Cancer Center doctor featured in a CBS News story said that “hundreds of studies . . . show there’s a direct association between consumption of alcohol and breast cancer risk.” The story cites the American Cancer Society as advising that one drink per day increases the risk by 10% and three drinks per day increases the risk by 20 percent. The story also says the impact of alcohol consumption on younger women “when breast tissue is most sensitive to environmental exposures” may be the most harmful.

United States: California’s “Bottle Bill” will include wine and spirits containers as of 01 January 2024 – Effective on 01 January 2024, wine and spirits containers – including Tetra Pak, pouches, and bag-in-box – will apparently be added into California’s Beverage Container Recycling Program. Beginning on 01 July 2025, wine and spirts containers will be required to be labeled with California Redemption Value (CRV) indicia. However, wine and spirits containers filled and labeled by 01 January 2024 and containers used in tasting rooms will be exempt from CRV labeling requirements. Further information can be found here.

NOTE: We make no warranty of any kind regarding the accuracy or completeness of the information in these FIVS Alerts; nor do we necessarily support or agree with views expressed or contained therein.