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.
Wildfires in U.S. – Wildfires in California, Oregon, and Washington have left at least 40 people dead and destroyed more than 7,000 structures, while burning more than five million acres. The California fires in Napa and Sonoma Counties have destroyed approximately 50,000 acres and more than 100 structures. Officials have ordered evacuations for thousands of people in communities close to the fires, which have demolished the famous Chateau Boswell winery. As the wildfires continue to rage, we at FIVS want to express our enormous concern and deep sorrow to all affected. These fires are horrific, and our hearts go out to each and every one of you.
TRADE
Quebec liquor authority ruling – The SAQ (the Quebec liquor authority) has reportedly issued an information bulletin that threatens Canadian wineries outside Quebec with enforcement action if they ship wine directly to Quebec customers. The issues surrounding the interprovincial shipment of alcohol in Canada are complex and were the subject of a relatively recent Supreme Court of Canada decision, R. v. Comeau, which largely upheld restrictive provincial laws, but also indicated that provincial laws or rules that discriminate as between “out of province” and “in province” producers could be held to be unconstitutional.
Review of UK alcohol taxation – The Wine and Spirits Trade Association (WSTA) has reportedly welcomed the UK government’s call for evidence into a comprehensive review of UK alcohol taxation, following the United Kingdom’s departure from the European Union. The WSTA argues that the current excise duty regime fails to support UK consumers and businesses, as well as the Exchequer.
WTO ruling on Boeing – The World Trade Organisation has reportedly released to EU and U.S. officials its ruling that the European Union can impose tariffs of approximately $4 billion annually in retaliation for U.S. government aid to Boeing Co. The EU had requested a $12 billion award, and the WTO had earlier granted a $7.5 billion award to the United States in a parallel dispute against Airbus. The EU could decide to impose tariffs on American exports to Europe before the upcoming U.S. presidential election on 03 November 2020, including duties as high as 100 percent on a list of American goods that includes airplanes, helicopters, tractors, tobacco, rum, wine, and orange juice.
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LABELLING
TTB ruling – A new ruling issued by the U.S. Tax and Trade Bureau (TTB) reportedly expands the tolerance for voluntary calorie statements on labels and in advertisements for wine, distilled spirits, and malt beverages, making them more consistent with the food labelling regulations of the U.S. Food and Drug Administration (FDA). The ruling allows for the use of databases and ranges for voluntarily reporting calories. Previous nutrition labelling guidelines established by the TTB in 2004 involved expensive testing of multiple batches of wine close to the time of bottling. The FDA has allowed the use of databases and ranges when disclosing nutrition information on restaurant menus since 2014.
MUP
Wales – A survey published by Alcohol Change UNK reportedly indicates that one in ten drinkers said that they were drinking less, six months after minimum unit pricing for alcohol beverages was introduced in Wales in March 2020, setting a baseline price of 50p for every unit of pure alcohol sold in any drink. The poll of 1,000 adults in Wales who normally drink alcohol beverages, which was conducted by OnePoll, indicated that 75 percent of the respondents knew about minimum unit pricing, compared with only 50 percent during the previous year.
ILLICIT ALCOHOL
Mexico – A spirits producer has reportedly announced that adulterated alcohol has been distributed under its brand in nine states throughout Mexico, killing fourteen. The company has filed 29 complaints in eight states against various criminal groups producing the illicit drink.
REPORTS
Alcohol-induced deaths in the United States – The U.S. Centers for Disease Control and Prevention National Center for Health Statistics has reportedly published data showing that the rate of alcohol-induced deaths for adults 25 years of age and older increased from 10.7 to 15.3 per 100,000 in 2006 to 2018, an increase of 43 percent. The rates of death increased at a greater rate for both men and women in rural areas. Although rates were higher for males than females each year, the rate of change was greater for females, resulting in a narrowing of the differences between male and female rates.
Drinking small amounts during pregnancy – A study of nearly 10,000 children between the ages of nine and eleven found that exposure to low levels of alcohol in utero led to more behavioural and psychological problems than children who were not exposed. The University of Sydney’s Matilda Centre for Research in Mental Health and Substance Use study of 9,719 children found that 25.9 per cent were exposed to alcohol in utero. One or two standard drinks per occasion before the mother knew she was pregnant reportedly still affected the child’s brain development.