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: Traders worry Beijing may target alcohol for stricter regulations – Following a report in China Fund News suggesting links between alcohol consumption and cancer, investors are reportedly worried that China’s government may intend to target alcohol beverages for stricter regulations. Shares in Kweichow Moutai fell by 2.8 percent on the day that the report was published and Wuliangye Yibin dropped 3.8 percent. Shares of Moutai, the largest producer of baijiu, have fallen by nearly 15 percent over the past six weeks. Beijing, which seeks to influence most aspects of life in China, may intend to manipulate the drinks market to raise tax revenue combined with social control measures. The Chinese alcohol market was valued at $175 billion in 2019, and the market is flourishing as income levels increase. The margins from China’s middle class – which may grow from 500 million people today to 1.2 billion by 2027 – are seen as the most profitable for alcohol producers.
India: Report calls for reduction in alcohol tariffs to facilitate imports and support business – A joint report of the Indian Council for Research on International Economic Relations and PLR Chambers reportedly has suggested reducing tariffs on alcohol beverages to facilitate imports and adopt clear and predictable excise policies that will encourage businesses to expand. Data from the report indicates that India’s total share in global exports of alcohol beverages is only .27 percent and its share in global imports is .75 percent.
Kenya: Proposed legislation would prevent alcohol advertising before midnight – Kenya’s Parliament is considering legislation that would give the Interior Cabinet Secretary authority to specify that alcohol beverage advertisements could air only after midnight. The legislation, which is in its second reading, seeks to amend the Alcoholic Drinks Control Act, No.4 of 2010, by curtailing the exposure of children and other vulnerable persons to the advertisements. Debate among members of parliament suggested that advertisements “make it appear that it is wrong and foolish not to drink alcohol” and “glorify” alcohol and drugs, leading to “rampant family breakups.”
Mexico: Edomex Congress committee approves stricter penalties for selling alcohol to underage youth – The Commission Enforcement and Administration of Justice of the Congress of the State of Mexico has approved increased penalties for those who sell alcohol beverages to underage youth, changing the maximum imprisonment from three to eight years. The proposed reform contemplates the same penalties for those who organise or carry out events, parties, or gatherings that sell or facilitate the consumption of alcohol beverages by individuals under the age of 18. If approved, the legislation will be turned over to the State Executive for publication and enforcement.
United Kingdom: New study reportedly links alcohol consumption with several cancers – According to this article, a study by researchers from Imperial College London, published in Nature Communications, reportedly found that drinking alcohol was positively associated with a risk of several cancers, including postmenopausal breast, colorectal, esophageal, head and neck, and liver cancer. The researchers said the risk of developing one of the associated cancers rises as individuals consume more alcohol. The study, which used data from 860 published studies to analyze the link between cancer and various nutrients, found that the consumption of dairy, wholegrains, and coffee were inversely associated with some cancers.
United States: Senate bill would mandate anti-drink driving technology in new cars – The $1 trillion infrastructure bill – which seeks to improve roads, bridges, public transit, among other things, under consideration by the U.S. Senate – would also mandate that “advanced drunk and impaired driving prevention technology” be included in all new passenger motor vehicles that should be able to “prevent or limit” operation if a driver is impaired. The legislation calls for the new standard to go into effect within five to six years but does not specify the mechanics of the new safety standard. Possible alcohol detection systems that would require no action from the driver involve testing the air in the car to detect a driver’s blood alcohol levels; an infrared touch sensor to detect blood alcohol level through skin that could be built into a steering wheel or start button; and vehicles equipped with breathalyzers. The Distilled Spirits Council of the United States voiced strong support for the infrastructure bill’s bid to address impaired driving to save lives.
United States: 75% of Americans surveyed support nutrition labelling for alcohol – A survey of 1,500 American adults conducted by Quadrant Strategies on behalf of the Beer Institute in July 2021 reportedly found that 75% of those surveyed support nutrition labels for alcohol beverages, 60% said they were more likely to purchase alcohol beverages that provide this information, and 72% thought nutrition labels encouraged responsible consumption.
Australia: Can smoke-tainted grapes be distilled into smoky spirits? – Researchers at the University of Adelaide are investigating whether smoke-tainted grapes can be used to make deliberately smoky-flavoured brandy or gin in twelve months’ time. The study is being conducted in tandem with an investigation on the impacts of climate change on brandy production in Australia. A previous study led by the University reportedly found that grapes enclosed in bags made from activated carbon fabric could significantly help stop smoke from affecting grapes in the first instance. The scale of damage during Australia’s 2019-2020 fire season was unprecedented, reportedly causing an estimated AU$665 million worth of production and revenue loss.
Canada: Researching how wildfires are tainting grapes – The University of British Columbia (UBC) is conducting research into how wildfire smoke leaves a chemical signature in grapes, and how to prevent smoke taint from affecting wine produced in areas subject to forest fires. The aroma of smoke is reportedly due in large part to a class of compounds known as volatile phenols, which enter ripening grapes or their leaves, but which are almost immediately detoxified through a process called glycosylation that lacks aroma. However, the yeast used to ferment the grapes breaks down the volatile phenolic-glycosides, regenerating smoky aromas in grapes that smelled perfectly fine. UBC students are studying whether smoke taint can be detected before grapes are harvested, how grapes chemically trap volatile phenols (to help winemakers devise methods to remove them from grape juice or wine), and whether any sprays might protect the grapes.
- Please contact the FIVS Secretariat if you would like to join our Fire Impact Subgroup.
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.