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: Forecasts for alcohol consumption in 2024 – Although IWSR predicts that alcohol consumption in China will fall by 0.4% annually from 2022 – 2027, it expects that rising interest among Chinese consumers in ultra-premium, higher-priced beverages (including beer, sparkling wines, and whiskies) will cause the value of that market to increase by $41.7 billion during those years. Strong interest in sustainable wines and imported wine options were also predicted.

Europe: Proposing higher alcohol tax rates in 2024 –

• The Czech Republic’s House of Representatives has reportedly passed legislation, not yet been passed by its Senate or signed by its President, that would increase the consumption tax on alcohol beverages by 10% in 2024 and 5% in 2025, but would exclude still wine.
• Finland’s Parliament may reportedly increase taxation on wines with 5.5% alcohol by volume and other fermented beverages by an average of 8.3 percent; increase intermediate products such as fortified wine by about 12.7 percent; and increase taxation on distilled spirits by about 8.8 percent. Tax on beer reportedly may be reduced by approximately 4.9 percent.
• Latvia reportedly plans to increase excise tax rates for alcohol beverages (beer, wines, fermented beverages, and intermediate products) annually by an average of 10% on 01 March 2024, 2025, and 2026. Estonia reportedly plans to increase excise taxation rates on all alcohol beverages by 5% each year during those three years, and Lithuania plans to increase its alcohol excise tax in 2024.
• Portugal’s government reportedly intends to increase its special consumption tax on beer and distilled spirits by approximately 10% in 2024. There will be an equivalent 10% increase on intermediate products, such as Porto wines, and fermented beverages, such as Sangria.

European Union: EC to lower limit values for nitrates/nitrites in food – The European Commission reportedly intends to lower the limit values ​​for nitrates and nitrites by approximately 20 percent, based on an assessment by the European Food Safety Authority. The new regulations will reportedly take effect in two years.

United Kingdom: Government sets out wine sector reforms for 2024 – Following a public consultation (Wine: reforms to retained EU law), the UK government has set out reforms for the wine sector that will begin in 2024. Changes will include ending the mandatory requirement that certain sparkling wines must have foil caps and mushroom-shaped stoppers. The government will also remove the requirement for imported wines to have an importer’s address on the label, but the Food Business Operator (FBO) responsible for ensuring that all legal requirements are met will still be required on the label. Further reforms will also give producers more freedom to use hybrid varieties of grapes.  The consultation response can be found HERE.

United States: Illinois regulates placement of co-branded alcohol beverages – The Illinois Liquor Control Commission has reportedly adopted a permanent rule to prevent confusion between alcohol and non-alcohol beverages with similar branding and to prevent their being marketed to children. The regulation prohibits businesses with retail sales floors larger than 2,500 square feet from displaying alcohol beverages immediately adjacent to soft drinks, fruit juices, bottled, water, candy, or snack foods with cartoons or youth-oriented images. Smaller businesses may comply with the requirements or post clear signage.

Global: WHO Less Alcohol webinar on youth & alcohol – The Less Alcohol Unit of the World Health Organization will hold a webinar exploring trends related to consumption of alcohol by youth, as well as different policy interventions, on 07 November 2023. Participation in this event is by invitation. Further information and program details can be found HERE.

Global: Is Alcohol the New Tobacco? – This article discusses the dramatic shift over the past three decades on alcohol consumption, shifting from the view that “moderate social drinking has been viewed as part of a healthy lifestyle” to a view “making alcoholic beverages less socially acceptable, like with tobacco.”  FIVS member, Ana Isabel Alves, executive director of the Portuguese Association of Wine and Spirits, discusses how the narratives around alcohol are about its becoming less socially acceptable.

Spain: Five-year study to investigate whether Mediterranean diet loses protective effect for older adults if red wine is removed – During the 18th annual Stare-Hegsted lecture at Harvard University, Professor Miguel Martínez-González discussed a study at the University of Navarra that will seek to determine whether red wine should be considered part of the Mediterranean diet for adults over 35. The research, which will involve doctors, ages 50 – 75, follows earlier research suggesting that the Mediterranean diet loses up to 23.5% of its protective effect if wine is removed.

Uganda: Health Ministry/WHO lobby Parliament re alcohol control legislation – During a meeting with members of Uganda’s Parliament, the Ugandan Ministry of Health and the World Health Organization discussed the importance of passing the Alcohol Control Bill, whose regulations would control alcohol consumption, establish an appropriate age for drinking, and regulate alcohol packaging and advertising. The Ministry and WHO stressed the importance of securing sufficient funding to implement the proposed regulations effectively, noting that Uganda ranks third globally in terms of alcohol consumption.

United Kingdom: Study on barriers to seeking treatment for harmful consumption of alcohol – A report, Breaking down barriers: International and UK approaches to help dependent drinkers access treatment, by CFE Research presents evidence in the United Kingdom and internationally regarding barriers faced by people seeking access to treatment, including the stigma surrounding alcohol misuse, the difficulty of navigating existing services, and limited resources. The report concluded that no one “silver bullet” addresses all barriers to treatment, but that a combination of approaches (digital interventions, assertive outreach, collocated and integrated services with multi-disciplinary teams, building capacity among professionals, and community, family and peer support) could help to break down barriers. Cost analysis has determined that for every £1 spent on treatment for alcohol dependency, there is an immediate £3 benefit.

Canada: Climate change devastates Okanagan wine growers/Red Rooster Winery closes onsite operations – A report released by the Wine Growers British Columbia and Cascadia Partners found that the freeze during December 2022, driven by climate change, may result in 45% of “total planted acreage suffering long-term irreparable damage” in the Okanagan region. Areas in South Okanagan, Kelowna, and Similkameen Valley report potential losses of 60% or more.  Sadly, Red Rooster Winery announced its decision to close its on-site operations due to “an unprecedented winter event that damaged our Okanagan vineyards.”

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.

AIDV Conference: The International Wine Law Association (IWLA/AIDV) held its annual conference in the city of Kelowna in the Okanagan Valley, British Columbia, Canada from 29 September to 01 October 2023. The meetings focused on a number of pressing issues, including geographic indications, labelling matters, relations among alcohol beverage categories, and regulatory developments. FIVS Head of Secretariat, Bennett Caplan, led an interactive session focusing on the increasingly restrictive alcohol beverage marketplace.

Australia – China: China suggests “package solution” for wine/steel disputes – China’s Commerce Ministry reportedly said that China and Australia should “promote a package solution” for disputes over China’s tariffs on Australian wine and China’s lawsuit against Australia on steel products. Australia’s Agriculture Minister reportedly responded that the Australians “will continue our WTO case when it comes to wine, and we will continue to defend the case when it comes to steel — but we hope that all these things can be resolved by dialogue.”

Brazil – European Union: spiritsEUROPE urges conclusion of EU-Mercosur FTA – At the launch of the publication of its Annual Trade Review, spiritsEUROPE joined with the Brazilian Spirits Trade Association and the Brazilian Institute of Cachaça, calling for a swift conclusion to the EU – Mercosur free trade agreement by the end of 2023. Although 2022 was “an exceptional year for EU spirits exports,” the threat of high inflation and rising production costs mean that the EU’s “conclusion of new FTAs” is a “must.”

European Union: EU regulation requires ingredient, nutrition, energy, and allergen information on wine labels/QR codes as of 08 December 2023 – On 08 December 2023, EU Regulation 2021/2117 reportedly will take effect, requiring wine sold in the European Union to provide consumers with ingredient, nutrition, energy, and allergen information. Except for the nutritional value in kilocalories and allergenic substances, which must be included on the label, producers may list information on the wine label or provide it online with a QR code.

Finland: Alcohol taxes to increase in 2024 – The Finnish government reportedly intends to increase its rates of taxation on alcohol beverages in 2024. Alcohol taxes in Finland are based on alcohol percentages for distilled spirits and beer; alcohol taxes for wines are fixed, regardless of their alcohol percentage. Presently, approximately 51% of the price of a bottle of wine is attributed to taxes, while 66% of the cost of spirits with 40% alcohol content is attributed to taxes.

Japan: Tax rates for regular beer to be cut in October 2023 – The Japanese government reportedly intends to cut the alcohol tax for regular beer by approximately 7 yen, but increase the rate for “third-category” beer-like alcohol beverages, which have less than 25% malt or no malt, by 9 yen in October 2023.

Romania: Alcohol taxes will rise in 2024/full VAT rate will apply to no-alcohol beer – On 25 September 2023, Romania’s prime minister announced fiscal and budgetary measures including the government’s intention to increase excise taxes on alcohol beverages and tobacco products on 01 January 2024. The government also intends to apply the standard value-added tax rate of 19% to alcohol-free beer, rather than the current reduced rate of 9 percent.

Iran: Four receive death penalty for illicit alcohol poisonings – An Iranian court reportedly has sentenced four individuals to death for illicit alcohol poisonings that blinded 191 individuals in June 2023.

United Kingdom: Government opens consultation on updating no/low alcohol descriptors to increase consumption – On 28 September 2023, the UK Department of Health and Social Care launched a public consultation on options for updating guidance for low-alcohol descriptors to increase the substitution of alcohol beverages with no/low alternatives “among people who drink above low risk levels.” The Department seeks views on whether to raise the threshold for describing a beverage as “alcohol free” from 0.05% to 0.5% alcohol by volume (ABV). It also seeks views on how to prevent children and young people from consuming these products, including the placement of warnings on products. And it seeks views on updating labelling guidelines for clearly displaying the alcohol percentage of these products. More information regarding the consultation, which will close at 11:59pm on 23 November 2023, can be found here.

United States: Research says cost of liver disease will double by 2040 – A report, “The Rising Costs of Alcohol-Associated Liver Disease in the United States,” written by researchers at Harvard Medical School and Massachusetts General Hospital reportedly concludes that the cost of treating alcohol-associated liver disease (ALD) will increase from $31 billion in 2022 to $66 billion in 2040. They argue, however, that “the damage and deaths are preventable” and call for “interventions and policy-level actions to combat both the disease and its rising costs.” The report states that approximately 956,000 people will die each year from ALD by 2040.

United States: Universities work to neutralise threat to vineyards posed by wildfires – This article discusses the efforts of scientists at three universities to neutralise the threat posed to vineyards by wildfires, as they develop spray coatings for grapes, research compounds that produce the ash taste resulting from wildfires, and use sensors to study the behavior of smoke.

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.

Canada – Ukraine: Updated Canada-Ukraine FTA signed in Ottawa – Ukraine’s President and Canada’s Prime Minister signed an updated Free Trade Agreement in Ottawa on 22 September 2023. The 2017 agreement will remain in force until the modernized agreement takes effect, but the text of the 2023 Canada – Ukraine Free Trade Agreement can be found HERE:

European Union: Netherlands may increase beer excise tax by 50+ percent on 01 January 2024 – The Dutch government has reportedly announced its intention to raise excise duties on beer by more than 16% – an increase that will be added to other increases planned to take effect on 01 January 2024 – increasing beer’s excise duty by 50% or more. The Dutch beer sector is reportedly calling on the House of Representatives to prevent the increase in taxes, arguing that Dutch citizens will cross the border and make purchases in Germany if excise taxes in the Netherlands become 360% higher for lager and 420% higher for other popular beers sold in Germany.

Turkey: Government expands ban on sale of alcohol and tobacco – Turkey’s Ministry of Agriculture and Forestry has amended regulations on tobacco products and alcohol beverages, expanding the ban on their sale to include gardens, campuses, and sites providing health, education, culture, and sports services, as well as coffee houses, patisseries, card and bridge halls, and fuel stations.

United Kingdom: Scottish government sets consultation re continuing MUP, setting price at 65ppu – The Scottish government has proposed extending Minimum Unit Pricing (MUP) for alcohol beverages beyond 30 April 2024, and setting the MUP level at 65 pence per unit of alcohol going forward. The Government has announced a public consultation period to gather views from people, businesses, public bodies, and interested parties on the proposal. More information can be found HERE.

Argentina: 18 provinces have adopted zero alcohol law – Eighteen provinces in Argentina have now adopted the Zero Alcohol Law for driving vehicles. Only five provinces and the City of Buenos Aires have not yet adopted the legislation. The Zero Alcohol Driving Law took effect on all national highways in May 2023.

European Union: European Public Health Alliance suggests using tobacco as model for alcohol control policies – During the thirtieth anniversary celebration of the European Public Health Alliance, participants discussed how past successes regarding the control of tobacco could “chart the way into the future for alcohol.” The Secretary General of the European Alcohol Policy Alliance (Eurocare) reportedly suggested that the “tobacco control movement can serve as a model for similar successes in the area of alcohol policy” if the movement has “a strong and unified voice.” They also urged the European Commission and national governments not to “open their doors to the alcohol lobby, following the example of how they deal with Big Tobacco.”

Global: WHO Less Alcohol Unit webinar on alcohol monopolies on 18 October 2023 – The World Health Organization’s Less Alcohol Unit will co-host a webinar – Alcohol monopolies: what does it take for alcohol monopolies to work? – on 18 October 2023. Leading experts on alcohol monopolies will discuss these systems in different contexts, including Canada, Finland, Sweden, and other Nordic countries. The event, which continues the dialogue initiated by the Less Alcohol Unit on “restricting alcohol availability and alcohol consumption,” will be co-hosted by the WHO’s Drugs and Addictive Behaviours of the Department of Mental Health and Substance Use, and the European Alcohol Policy Alliance (Eurocare). Prior registration is required. Further information can be found HERE.

Global: New WHO publication says alcohol consumption even at low levels linked to high incidence of hypertension – The WHO publication – Global report on hypertension: the race against a silent killer – reports on “unsettling statistics underscoring the far-reaching consequences of uncontrolled hypertension – ranging from heart attacks, strokes, and premature death to substantial economic loss.” The report’s section on alcohol consumption highlights this language: “Chronic alcohol consumption, even at low levels, is linked to a high incidence of hypertension.” The report also states that “risks associated with alcohol use manifest in various ways, including injuries, liver toxicity and an increased risk of cancer.” A country-by-country snapshot indicates levels of tobacco use, total alcohol consumption, obesity, and physical inactivity (in 2016 and 2019) as risk factors. The report was funded by grants from Bloomberg Philanthropies; the Bill and Melinda Gates Foundation; and the Chan Zuckerberg Initiative DAF, an advised fund of Silicon Valley Community Foundation.

South Africa: Government to clear criminal records of 340,000+ convicted of violating COVID-19 laws – South Africa’s parliament has reportedly passed legislation to clear the criminal records of more than 340,000 individuals convicted of violating COVID-19 laws. If signed into law by South Africa’s President, charges of South Africans who admitted guilt to offenses including not wearing masks, drinking alcohol beverages, or breaking curfew would be cleared.

United States: Study suggests modest alcohol consumption linked to Alzheimer’s – A news article entitled, Think Twice Before That Next Drink: Alcohol’s Shocking Link to Alzheimer’s, reports that a study published in the journal Neurobiology of Disease in February 2023 concluded that “even modest alcohol consumption can expedite brain atrophy and amplify the formation of amyloid plaques, which are linked to Alzheimer’s disease.”  The study, which was conducted by Wake Forest University School of Medicine, can be found HERE.

European Union: 2023 has been “rollercoaster of natural disasters” – This article describes how wine producers in Europe have “endured another rollercoaster of natural disasters” in 2023 – suffering damage from excessive rain, hailstorms, and extreme temperatures. Due to extreme weather conditions, wine harvests in Italy reportedly may have fallen by 12% and in Spain by 20%. And the head of a Japanese brewer has reportedly claimed that the availability of beer could fall due to climate change, as well, given a decline in Europe’s barley crops.

European Union: EC proposes renewal of glyphosate approval to member states – On 22 September 2023, the European Commission’s Standing Committee on Plants, Animals, Food and Feed forwarded draft regulations to member states, setting out the conditions for renewing approval of the use of glyphosate. The Commission aims to finalize its decision by 15 December 2023, the date on which current approval of the pesticide will expire.

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 – United States: Will EU impose 50% tariffs on U.S. whiskey in January 2024? – The U.S. Trade Representative and EU Trade Commissioner reportedly plan to meet as the deadline for reaching an agreement on the trade of steel and aluminum products draws near. In 2018, the European Union retaliated after former U.S. President Trump placed tariffs on steel and aluminum imports into the United States. In November 2021, President Biden reached a temporary agreement with the European Union, but if the two sides do not reach a new agreement by 31 October 2023, the 10% and 25% tariffs imposed by the European Union on U.S. products will return, and a second list that includes whiskey will face an additional 25% tariff on top of the earlier 25% duty, beginning on 01 January 2024. Nearly 44% of American whiskey is reportedly exported to the European Union.

India: New definitions of single malt whiskey/single grain whiskey & mandate against nutritional information on alcohol beverage labels – The Ministry of Health and Family Welfare/Food Safety and Standards Authority of India (FSSAI) has published amendments introducing new definitions for single malt whiskey and single grain whiskey, and a clause mandating that no alcoholic beverage shall contain nutritional information on its label.

Kenya: Government plans to increase excise taxes on high ABV beverages – The Kenyan government is reportedly planning to increase excise taxes on beverages with higher alcohol content, tobacco products, and sugar-based beverages to discourage their consumption. Its Treasury Department reportedly is seeking recommendations on optimal tax rates by 06 October 2023.

Russia: Vodka sales fell by 16.4%, cognac and brandy by 20.3%, as Russians switch to cheaper & counterfeit products – Sales of vodka in Russia fell by 16.4 percent during the first half of 2023, and cognac and brandy fell by 20.3 percent as foreign producers left the Russian market. As Russia’s Health Minister reportedly celebrated victory over “alcohol revelry,” saying that alcohol consumption per capita had fallen by nearly 5% from 2019 to 2022, others report that Russians have switched to cheaper and counterfeit products because their incomes have declined and foreign brands have become unavailable.

United Kingdom: Publication of guidelines for whisky production – The British Standards Institution has reportedly published voluntary standards for production of UK-made whisky sold in the United Kingdom and globally. The guidelines include specifications for additives, colour, and packaging, and set a minimum ABV of 40 percent.

• United Kingdom: Pub chain to begin charging more during “peak times” – The largest pub chain in the United Kingdom apparently intends to introduce  a “dynamic pricing” scheme in its 800 pubs, possibly increasing the price of a pint of beer by 20p on weekends. The company says that its use of “surge pricing” – similar to that used by some taxi services – is required to cover the cost of additional staff during busy hours.

European Union: Portuguese wine sector fears EU will allow Irish warning labels – The president of ViniPortugal appears to doubt that “the European Union will force Ireland to go back on its decision,” requiring cancer warning labels on alcohol beverages. He also reportedly said, “I am afraid that this will spread to other countries, because we are providing consumers with information about the risks of moderate wine consumption, which are not true, are not real and which have no scientific study behind them.” The executives of the French, Italian, Portuguese, and Spanish governments reportedly have urged the European Union to oppose the introduction of the warnings, which they claim are “inconsistent” and “incompatible” with EU regulations.

European Union: Nordic groups call for ban on all alcohol marketing – The European Centre for Monitoring Alcohol Marketing (EUCAM), IOGT-NTO (Sweden), and the Lithuanian Tobacco and Alcohol Control Coalition (NTAKK) – supported by WHO Europe – held a conference in Vilnius during June 2023 on the challenges of digital alcohol marketing. Together with the Nordic Alcohol and Drug Policy Network (NordAN), the groups called on European governments and countries to implement full bans on alcohol marketing, and close loopholes on “alibi-marketing,” allowing the marketing of no-alcohol products to circumvent alcohol marketing legislation.

United States: Questioning liability law as South Carolina bars face “skyrocketing” insurance rates – This editorial discusses alternatives to legislation passed in 2017 requiring bar owners in South Carolina to maintain $1 million in liability insurance to cover losses in lawsuits showing they violated laws by serving intoxicated or underage customers. Bars are reportedly going out of business as insurance rates have “skyrocketed.”

Australia: Emissions reduction roadmap to reduce wine sector carbon emissions by 40+ % by 2030 – A newly released Emissions Reduction Roadmap for the Australian grape and wine sector has outlined effective and practical steps to reduce the sector’s carbon emissions by more than 40% before 2030. Developed by Wine Australia, Edge Impact, and more than 200 members of the grape and wine community, the Emissions Reduction Roadmap outlines 11 initiatives that will result in cost savings and the reduction of emissions in the vineyard, in the winery, and throughout the supply chain. The Roadmap and all associated resources are available at wineaustralia.com/emissions-reduction-roadmap.

United States: California beverage container recycling act takes effect in January 2024 & its label requirements take effect in July 2025 – The California Beverage Container Recycling and Litter Reduction Act takes effect on 01 January 2024. Wineries that sell product in California are required to register with CalRecycle, which administers the program. New labels showing the recycle value of the bottle and a list of state initials must appear on wine bottles by 01 July 2025. The legislation categorises wine companies as bottlers, rather than as packagers who are subject to stricter requirements.

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 – China: Plans for China to cancel tariffs on Australian wine “not yet ripe” – Following a meeting on 07 September 2023 with Australia’s Prime Minister in Jakarta, Chinese Premier Li Qiang reportedly indicated that China may be ready to “restart and resume bilateral exchanges in various fields.” However, “insiders at Chinese wine industry groups” reportedly do not believe China has plans to lower or cancel tariffs, and some Australian groups are calling for a review on China’s anti-dumping case against Australian wines in March 2021.

Global: 46th Codex session to be held in Rome on 27 November – 02 December 2023 – The 46th Session of the Codex Alimentarius Commission will be held in Rome from 27 November to 02 December 2023. The Commission’s 60^th anniversary will be celebrated on the first day of the session. More information, including guidance for virtual participation in meetings as well as working documents as they become available, can be found here.

Russia: An investigation of Russia’s whisk(e)y market in 2023 – This Forbes article investigates the Russian whisk(e)y market after global alcohol companies left Russia last year and Russia moved to introduce new local brands and supply drinks from India.

United Kingdom: Alcohol beverage prices surge following tax hikes – The prices of alcohol beverages have risen sharply after the United Kingdom ended its three-year alcohol duty freeze on 01 August 2023, allowing taxes to rise by 10.1%. At the same time, the UK government has also introduced a new alcohol tax system based on ABV.

Argentina: Zero Alcohol Driving Law apparently produces four-fold drop – Following the enactment in May 2023 of the “Zero Alcohol Driving Law,” which prohibited driving with a blood alcohol level greater than zero milligrams per liter of blood, the number of individuals found driving after consuming alcohol reportedly dropped four-fold. An operation conducted by the national government during the first week of June 2023, when breathalyser tests were given to more than 25,000 drivers, found that 98% of the drivers registered no alcohol in their blood. Male drivers tested positive, though, in twice as many cases as female drivers, and 6% of motorcycle drivers had positive blood alcohol levels.

Global: Study reportedly finds cancer up 79% in people under age 50, likely due to alcohol, smoking, and obesity – A study of 29 cancers in 204 countries and regions in individuals aged 14 to 49 conducted by the University of Edinburgh and the Zhejiang University School of Medicine in China reportedly found that recorded cases of cancer rose by 79% from 1999 to 2019. Deaths rose by 27.7% during the same period. Although genetics “were likely to play a part,” the scientists concluded that alcohol consumption and smoking were identified as “the biggest risks.”

Global: Study suggests beer may be better for gut health than probiotics, offer other positive effects – A study by the Dalian Medical University in China reportedly suggests that moderate consumption of beer may be more beneficial to gut health than probiotics. The study also suggests that beer may have positive effects on cancer prevention, reduce cardiovascular events, and modulate metabolic syndrome which increases the risk of heart disease, stroke, and type 2 diabetes.

South Africa: Minister says pregnant women who drink should be charged with child abuse – In advance of International Foetal Alcohol Syndrome Day on 09 September 2023, South Africa’s Deputy Minister of Social Development reportedly said that “women who drink alcohol while pregnant should be charged with child abuse.” The World Health Organization reportedly has said that South Africa has the highest reported prevalence of the disorder at a global level.

Tunisia: Climate change damages up to 50% of grapes in Tunisian vineyards – Tunisia’s Agriculture Minister reportedly estimated that approximately 20% of its wine industry’s grapes have been damaged by a “blisteringly hot summer” caused by climate change. The head of Vineyard Producers’ Syndicate reportedly estimated that the loss was as high as 40 to 50%.

United States: Images taken from air identify infections in grape vines before symptoms appear – Researchers at Cornell University reportedly have found infrared images taken by airplanes in California can identify with nearly 90% accuracy whether grape vines have been infected with disease before they show symptoms of disease. Scientists at NASA hope that the process eventually will be conducted from space for many different crops, diseases, and pests around the world.

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.

AIDV Conference: The International Wine Law Association (IWLA/AIDV) will be holding it annual conference in the city of Kelowna in the Okanagan Valley, British Columbia, Canada from 29 September to 01 October 2023. The meetings will focus on a number of pressing issues, including labelling matters, relations among alcohol beverage categories, and regulatory developments. FIVS Head of Secretariat, Bennett Caplan, will lead a session that will focus on the increasingly restrictive alcohol beverage marketplace.

Ecuador: Regulation permits advertising of beverages that do not exceed 5% ABV – The Organic Law of Communication, signed by Ecuador’s president on 23 August 2023, reportedly states that alcohol beverages that do not exceed 5% alcohol by volume (ABV) may be advertised in Ecuador.

European Union: Alcohol, tobacco prices rose by 9.8% over past year – Eurostat – Although the consumer price index for countries using the euro currency remained unchanged at 5.3%, alcohol, food, and tobacco prices rose by 9.8% during the past year, according to data issued by Eurostat on 31 August 2023.

Global: Does wine sector face crisis as sales fall? – This author writes that the French Agriculture Minister’s remark that the wine sector must “look to the future, think about consumer changes… and adapt” – as well as reports that wine sales to individuals younger than 60 around the world have fallen – all seem to suggest that the wine sector is facing an existential crisis.

Netherlands: Government to increase alcohol, gasoline, tobacco excise taxes in 2024 to combat poverty – The Dutch government reportedly will take such measures as increasing excise taxes of alcohol, gasoline, and tobacco in its 2024 budget to combat poverty. The Cabinet reportedly seeks to raise 100 million euros by raising excise duties on tobacco (46 million euros) and alcohol (54 million).

Russia: Ministry intends to increase tax on wine imports to 20% – Russia’s Ministry of Economic Development reportedly intends to increase taxation on “the import of wine from unfriendly countries” from 12.5 percent to 20 percent to support the development of tourism within Russia. The Ministry reportedly told reporters that Russia anticipates receiving an additional 21 million tourists by 2030.

European Union: Draft report to subcommittee renews focus on prevention of NCDs – A draft report on non-communicable diseases (NCDs) presented to the EU Parliament’s Subcommittee on Public Health (SANT) urged a renewed focus on preventing NCDs, which it reportedly said account for 90% of deaths in the European Union. The head of the European Public Health Alliance reportedly indicated that current policies are ineffective and presented amendments to the draft document related to the “intrinsic harm of alcohol consumption” calling for stronger measures related to alcohol and tobacco. The draft report acknowledges that the harmful use of alcohol is a risk factor for multiple NCDs and underlines that the lower the amount of alcohol consumed, the lower the risk is of developing NCDs. It also welcomes the Commission’s objective of achieving a 10 % reduction in harmful alcohol consumption by 2025 and calls on the Commission and the Member States to enact restrictions on alcohol advertising targeting minors and promotes measures aimed at reducing and preventing alcohol-related harm within the revised EU alcohol strategy.

Global: WHO African Region states adopt framework based on GAAP – During the seventy-third session of the WHO Regional Committee for Africa, held in hybrid fashion from 28 August to 01 September 2023, member states adopted a regional implementation framework for the WHO Global alcohol action plan (GAAP), building on an existing regional strategy established 13 years ago. Targets include “at least a 20% relative reduction (against the 2019 baseline) in alcohol per capita consumption” – shifting the region’s earlier focus away from reducing harmful consumption. The framework seeks to limit access to alcohol, increase excise taxes and establish minimum prices, and impose comprehensive restrictions on alcohol marketing, advertising, sponsorships, and promotion across all media. The adopted framework also refers to interference by the alcohol industry, which it says, “delays and impedes the adoption of alcohol policies by parliament” and charges the sector with advertising “without restrictions.”  

United States: Biden administration does not support limiting alcohol consumption to two drinks per week – The White House press secretary reportedly said President Biden does not support revising U.S. guidelines to limit consumption of alcohol to two drinks per week – following media reports that the head of the U.S. National Institute of Alcohol Abuse and Alcoholism supported such a move.

Europe: Climate change is changing the European wine sector’s map – As climate change brings rising temperatures, drought, and extreme weather, Europe’s commercial vineyards are appearing farther north in Denmark, Norway, Sweden, and the United Kingdom.

United States: “America is using up its groundwater like there’s no tomorrow” – A New York Times investigation, “America Is Using Up Its Groundwater Like There’s No Tomorrow,” considers the overuse of aquifers throughout the United States. Water use has increased over the last forty years, and groundwater is used “faster than nature can replenish it.” The U.S. federal government reportedly does not regulate groundwater extraction, but the state of California passed legislation in 2014 meant to prohibit unlimited drawdowns on aquifers. In dry years, more than 60 percent of the state’s water supply has reportedly been drawn from groundwater. The article concludes that “California is a bit of a test case.”

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.

The International Organization of Vine & Wine (OIV) will hold the Vine and Wine World Trade Forum, an international meeting of experts who will assess the impact of non-tariff measures on the wine industry on October 3, 2023 in Dijon, France. The OIV Director General, Pau Roca, will oversee this event, which will feature noted experts from organisations such as the World Trade Organization, UNTAD, the OECD, and the International Trade Commission. Deputy Head of Secretariat, Laura Gelezuinas, will be a panellist at this event.

Czech Republic: Government coalition plans to expedite alcohol excise tax increases – The Czech Republic’s governing coalition parties have reportedly reached agreement on a draft budget recovery package after making several changes. In addition to adjusting its value-added tax (VAT) system, the parties agreed to expedite planned increases to the alcohol excise tax. Rather than raise that tax by 10% next year, followed by 5% annual increases over the following three years, the tax will be raised instead by 10% next year, 10% the following year, and 5% the year after that.

France: Considering whether wine label regs should include yeast – The author of this article discusses legislation introduced last month in France’s Legislative Assembly that would require winemakers to show whether their wine is made with commercial yeast. The legislation reportedly suggests that the public is “unaware that many winegrowers add exogenous yeasts to their wine.” A researcher from the Chemical Engineering Laboratory in Toulouse, France reportedly objected to the proposed legislation, arguing that the practice of adding selected yeasts is widespread, pointing out that no evidence suggests that native yeast is healthier than commercial yeasts, and asking why wine has been targeted when other products such as bread, yogurt, and beer also use commercial yeast. New EU labeling rules for wine are set to take effect in December 2023.

• France: Government to purchase surplus wine stock as wine consumption drops – The French government has reportedly allocated €200 million, supplementing an initial EU fund of €160 million, to purchase excess wine stock, thereby helping wine producers. Statistics from the European Commission for “the period up to June” reportedly found declines in wine consumption of 7% in Italy, 10% in Spain, 15% in France, 22% in Germany, and 34% in Portugal. The French government is also apparently encouraging wine growers to switch to growing alternative crops in response to climate change, as well as to address a lack in demand.

Global: Call for mandatory alcohol marketing regulations as celebrity endorsements grow – As the number of celebrities endorsing alcohol brands grew from 40 in 2018 to 350 in 2023, this author from the Cancer Council Western Australia concludes that voluntary restrictions on marketing for these products is inadequate and calls instead for government regulation of alcohol beverage marketing practices.

Romania: Alcohol consumption up 40% over 50 years – Research based on data from the World Health Organization (WHO) reportedly found that Romanians consume 40% more alcohol today than 50 years ago. In 1969, Romanians consumed an average of 8 liters of pure alcohol per capita per year, compared with nearly 11 liters in 2023.  In 1969, nearly half of the alcohol consumed was wine, but nearly half of the alcohol consumed in 2024 is beer.

Sweden: Board may recommend maximum of 10 drinks/week for both men and women – Sweden’s National Board of Health and Welfare reportedly may revise its recommended guidelines for alcohol consumption. The Board currently recommends consumption of no more than 14 drinks per week for men and nine drinks for women, but it reportedly may change its recommendations to 10 drinks for men and women both, suggesting that risks to health are the same for men and women. This article also states that “anyone who drinks a maximum of seven glasses a week has a 100% risk of dying prematurely from it” and that “alcohol can penetrate all cells and causes more than 200 diseases according to the World Health Organization.”

United States: NIAAA director says new dietary guidelines in 2025 could include limit of 2 drinks/week – The Director of the U.S. National Institute on Alcohol Abuse and Alcoholism (NIAAA) reportedly said that the U.S. Department of Agriculture and U.S. Department of Health and Human Services may revise the Dietary Guidelines for Americans, 2020-2025 (which currently limits the consumption of alcohol beverages to 2 drinks or less a day for men and 1 drink or less a day for women) to two drinks per week. The Director reportedly also indicated that he is following “Canada’s big experiment with interest.”

Canada: Wildfire season in British Columbia worst on record – The wildfire season in British Columbia during 2023 is the worst on record. Many staff members of wineries have been evacuated from the area, and travel restrictions and heavy smoke have hurt winery sales. More than half of the sales from these wineries reportedly result from on-site sales. Whether the smoke will have a great impact on this year’s vintage is not yet known. Those who wish to support wildfire relief efforts for the area can do so through the Canadian Red Cross, Mamas for Mamas, United Way, and Central Okanagan Food Bank.

***A note regarding last week’s alerts – the following item includes the corrected dates:

“Lifestyle, diet, wine and health” conference on 19-20 October 2023 – The Wine Information Council and FIVIN (Fundación para la Investigación del Vino y la Nutrición) will host a Congress on “Lifestyle, diet, wine and health” on 19-20 October 2023 in Toledo, Spain, gathering experts, researchers, doctors, academics, and health enthusiasts from around the world to discuss the latest scientific evidence on the topic. For more information about the program and how to register, visit the Congress website at https://www.lifestylewine2023.com/ . Early-bird rates last until 01 September 2023.

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.

“Lifestyle, diet, wine and health” conference on 18-19 October 2023 – The Wine Information Council and FIVIN (Fundación para la Investigación del Vino y la Nutrición) will host a Congress on “Lifestyle, diet, wine and health” on 18 – 19 October 2023 in Toledo, Spain, gathering experts, researchers, doctors, academics, and health enthusiasts from around the world to discuss the latest scientific evidence on the topic. For more information about the program and how to register, visit the Congress website at https://www.lifestylewine2023.com/ . Early-bird rates last until 01 September.

France: Minister of Health says increase in alcohol excise tax “is on the table” – Reportedly saying that “the question is on the table,” France’s Minister of Health has confirmed that the French government may include an increase in the alcohol excise tax as part of its social security budget for 2024. The Minister indicated that he favors maintaining the current “behavioural” tax on alcohol “at the very least,” adding that we will then “see if this mechanism is accelerated.”

Philippines: Alcohol excise tax may increase by 10.4% in 2024 – The Philippine’s Bureau of Internal Revenue has reportedly included an increase in excise taxes for alcohol and tobacco products by 10.4% in the proposed Budget of Expenditures and Sources of Financing for 2024.

United Kingdom: 100+ small brewers closed over past 18 months – More than 100 small brewers in the United Kingdom have reportedly closed their doors during the past 18 months, hurt by Brexit, the pandemic, inflation, and changes in beer duty laws.

Germany: Addressing sustainability, price, and wine retailers – Following the 10th International Master of Wine Symposium held in Wiesbaden, Germany, which addressed the conflict between consumer demand for sustainability and affordable wines, Professor Dr. Simone Loose of Geisenheim University reports on their key findings, highlighting the role of the wine retailer as an intermediary between the wine producer and the wine consumer.

Global: Albania joins OIV, its 50^th member state – Albania has joined the International Organisation of Vine and Wine (OIV), becoming the OIV’s 50^th member state. Albania reportedly intends to participate in the OIV’s upcoming General Assembly in October 2023.

United States: Gallup poll finds 39% of Americans believe 1-2 drinks per day bad for health – A Gallup poll conducted in the United States on 03-27 July 2023 found that 39% of Americans believe consuming “one to two drinks a day is bad for one’s health” – eleven percentage points higher than a previous poll conducted by Gallup in 2018. The poll taken last month also found an increase of 18 percentage points for individuals aged 18-34 since the earlier poll.

• United States: Media stories suggest no safe level of alcohol consumption – A Washington Post article – Women are drinking more alcohol and it’s killing them – suggests that public health authorities should adopt “more effective strategies” to “make women more aware of the health consequences of high-risk drinking patterns.” The article cites data from the U.S. Centers for Disease Control and Prevention, finding that alcohol-related deaths of women rose by almost 15% from 2018-2020.  An MSNBC story – Alcohol is killing more women than ever – we need to talk about why – suggests that alcohol consumption “has been sold to women as liberation” and advocates regulations requiring clear, concise warning labels that link alcohol consumption “as a potential risk of cancer.” And a story on Fox News – A single alcoholic drink per day could raise blood pressure, says study – cites a study published in the American Heart Association (AHA) journal Hypertension that blood pressure levels are likely to increase regardless of the amount of alcohol consumed.

Global: WHO webinar on alcohol & the environment – The World Health Organization’s Less Alcohol Unit will hold the first edition of its 2023 webinar series, entitled Alcohol and the environment: How to green alcohol control policies? on 18 September 2023. The Less Alcohol Unit suggests that alcohol control policies bring environmental as well as health benefits, and says that “the environmental impacts of alcohol . . . include the depletion and degradation of water resources, greenhouse gas emissions, soil and air pollution and waste production.” Participation in this event is by invitation only. More information about the series 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.

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.

United States: Jamie Ferman joins Wine Institute – Jamie Ferman has joined Wine Institute as its Senior Director of International Public Policy, where she will focus on expanding export opportunities for wineries through the removal of tariff and non-tariff trade barriers. She formerly served as Senior International Trade Specialist at the U.S. Commerce International Trade Administration. Since her move to Wine Institute, FIVS is delighted to report that Jamie has agreed to join Nicola Tinelli, who is Head of Institutional Affairs at Unione Italiana Vini, as co-chair of FIVS’s Economic Working Group!

United States: WineAmerica highlights FIVS’s work – New FIVS member WineAmerica has graciously highlighted the ongoing work at FIVS. In its current edition of Wine America Perspectives, President Jim Trezise commends FIVS for its practice of updating its members regularly on public policy developments around the world. And in its previous edition, he highlighted an editorial written by FIVS Head of Secretariat Bennett Caplan on the ways that FIVS is addressing major issues facing the industry, including climate change, trade barriers, and the recent shift in perspective at the World Health Organisation that there is “no safe level” of alcohol consumption.

Australia – China: The Australian Trade Minister is “extremely confident” about eventual removal of wine tariffs – After China recently indicated its intention to end China’s 80.5% tariffs on Australian barley. Australia’s Minister for Trade, Tourism and Investment reportedly said that he is “extremely confident” that China’s tariffs on Australian wine, which currently range from 116.2% to 218.4%,  “would eventually be removed.”

France: Government reportedly postpones tax increase on alcohol beverages – The French government has reportedly postponed consideration of a new tax increase on alcohol beverages after 44 Parliamentarians warned the government that the increase “could jeopardize the competitiveness of our producers and harm the vitality of our wine-growing regions, some of which are already in crisis.” Current excise taxes on alcohol beverages are indexed to inflation but cannot exceed 1.75%, but the proposed change, similar to measures in place for tobacco, could lead to an increase of about 5% in 2024.

Global: WHO includes medications for alcohol use disorders in new EML – The World Health Organization (WHO) has included acamprosate and naltrexone, two medications used for the management of alcohol use disorders in adults, in their Model List of Essential Medicines (EML), which was published on 26 July 2023. The WHO indicated that its decision was driven by steps set out in the WHO’s Global Alcohol Action Plan 2022-2030. Established in 1977 largely for developing countries, the WHO updates its model lists every two years to guide the decisions of countries about which medicines represent the best value for money, based on evidence and health impact.

South Africa: Stakeholders challenge Limpopo “midnight law” in court – The National Liquor Traders Association and other stakeholders are challenging the implementation of the Limpopo Liquor Act before the High Court in Polokwane. Nicknamed as the “midnight law,” the legislation banned the sale of alcohol beverages at midnight, beginning on 01 August 2023. The law also reportedly raised the cost of license renewals from R100 to approximately R600. Previously, the sale of alcohol beverages was permitted until 2 am.

United Kingdom: WSTA publishes guides to clear confusion re no/low alcohol – The Wine and Spirit Trade Association (WSTA) has published guides to address confusion surrounding alcohol beverages with less than 0.5% ABV. The publications offer guidance on marketing and labelling for these beverages. The WSTA reportedly advocates increasing current descriptors of alcohol-free beverages in the United Kingdom from 0.05% to 0.5%, which would provide consistency for trade with European markets.

United States: Study finds alcohol unlikely to increase risk of a breast cancer recurrence – A Kaiser Permanente study, funded by the National Cancer Institute, concluded that short-term alcohol consumption after a breast cancer diagnosis is not likely associated with an increased risk of breast cancer recurrence or death from breast cancer. Researchers studied the data of 4,504 women diagnosed with invasive breast cancer from 2005 to 2013 at Kaiser Permanente Northern California. Breast cancer prevention guidelines recommend that women consume no more than one drink per day, because alcohol may raise estrogen and acetaldehyde levels, which reportedly are breast cancer risk factors. The study, published in Cancer, 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.

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.

United States: FIVS Head of Secretariat’s article on growing challenges facing the global wine sector – WineAmerica invited FIVS Head of Secretariat Bennett Caplan to explain how the global wine and alcohol beverage sectors are facing a more complicated and challenging environment than ever before. In this article, he describes how FIVS is meeting these challenges through its work regarding the debate around alcohol and health, on climate change and extreme weather, and on increasingly numerous and complex trade barriers.

Australia New Zealand: FSANZ opens consultation on permitted carbs/sugar claims in alcohol – Food Standards Australia New Zealand (FSANZ) is calling for comments on Proposal P1049 which would clarify the permitted extent of carbohydrate and sugar claims on food containing more than 1.15% alcohol by volume. Interested parties are invited to comment on the proposed amendments. Submissions close at 6pm (Canberra time) on 04 September 2023.

Chile: Chamber of Deputies resolution would exempt wine, pisco from future planned tax increases – Chile’s Chamber of Deputies reportedly passed a resolution calling for the exemption of wine and pisco from proposed tax increases on tobacco, sugary drinks, and alcohol beverages. The resolution reportedly includes mention of the Coquimbo region, which is home to many wine and pisco producers in Chile.

Czech Republic: Government still discussing imposition of excise tax on still wine – Although a new excise tax on still wines was not included in a consolidation package, discussions among government coalition leaders reportedly will continue, particularly because “the vast majority of still wine in the Czech Republic comes from imports.” The discussions are expected to conclude within “a few weeks, months at the most.” Sparkling wines are reportedly taxed at 23.40 crowns per liter, and beer and spirits are subject to a value-added tax.

France: 71 deputies oppose possible wine tax increase – Two letters signed by a total of 71 deputies of the National Assembly were reportedly sent in opposition to a possible increase in taxation rates on French wine and spirits. A letter was sent to France’s Minister of Health on 11 July 2023, warning that “an excessive increase in taxes could jeopardize the competitiveness of our producers and harm the vitality of our wine regions, some of which are already in crisis.”  A second letter was sent to France’s Minister of Agriculture on 24 July 2023, also warning that an increase in taxation on wine and spirits “could have disastrous consequences for the sector” and asking the Minister to defend the wine sector during upcoming negotiations.

Global: Report indicates alcohol advertising bans do not reduce harmful consumption – A report, Alcohol Advertising: What does the evidence show?, issued by the Institute of Economic Affairs (IEA) finds “remarkably little evidence” that bans on alcohol beverage advertising reduce the harmful consumption of alcohol. The report found that advertising increases the market share of individual brands, but does not increase overall total sales. The IEA noted that three Canadian studies, as well as a study from 17 OECD countries from 1975-2000, also concluded that advertising bans have no effect on consumption. The Scottish government closed a consultation on the advertising and promotion of alcohol beverages in March 2023, and more recently, the First Minister reportedly asked his staff to “take these ideas back to the drawing board, work with the industry, and crucially with public health stakeholders, to agree on a new set of proposals.”

Iran: Deaths, including that of a celebrated artist, from illicit alcohol spike throughout Iran – Iranian government officials have reportedly acknowledged that the number of hospitalisations and deaths caused by methanol poisoning has risen dramatically. Tehran’s chief coroner reportedly said during a news conference that hospitalizations and deaths in Tehran had risen by 36.8% since March 2023. Reports in local newspapers indicate that “towns big and small” across Iran are now experiencing 10 cases per day from methanol poisoning. The actual numbers most likely are greater because the sale and consumption of alcohol beverages, except for religious minorities, have been banned since Iran’s revolution in 1979 and are punishable by penalties including fines and as many as 80 lashes.

Ireland: Criticisms of Irish mandate re alcohol warning labels – British and Canadian politicians have reportedly requested meetings with Ireland’s Minister of Health regarding alcohol warning labels mandated to appear on bottles in 2026. The head of FASD Ireland reportedly objected to the image of a pregnant woman holding a wine glass – with a red line marked through the woman – which he suggested “reinforces the message of blame and shame on the pregnant woman,” suggesting instead use of a written label stating that “no amount of alcohol is safe at any time when trying to conceive or get pregnant.” Ireland’s Member of the European Parliament reportedly shared a communication from Wines Direct, suggesting that winemakers could “easily find another market,” which he said would be “catastrophic” for Ireland.

South Africa: Limpopo Province bans alcohol sales after midnight – The alcohol beverage sector may seek help from South Africa’s Constitutional Court, following passage of legislation in Limpopo Province banning the sale of alcohol beverages after midnight, effective on 01 August 2023. Industry representatives are reportedly arguing that provincial governments may not interfere with trading hours and are objecting to taverns “being made scapegoats for the increase of crime in the province.” They have also reportedly objected to an increase in liquor licence fees from approximately R100 to R750.

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.