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.
Trends
Global: Declining consumption of wine is worrisome trend – A Wine Intelligence survey of individuals who drink wine at least once per month in Australia, Belgium, Canada, Ireland, Japan, Netherlands, Switzerland, the United Kingdom, and the United States found that 39% claim to be reducing their wine consumption. Consumption per capita of wine globally has reportedly declined by 15.3% during the last decade. The trend toward lower consumption appears to be strongest among millennials, but the consumption of those from Generation Z, who typically drink alcohol while socializing, has also fallen during the pandemic.
Minimum unit pricing
Ireland: Minimum unit price on alcohol aims to curb harmful consumption – Ireland’s government has introduced a new minimum unit price on alcohol to reduce harmful consumption by making cheaper products less readily available. Stores, restaurants, and pubs must now sell drinks containing alcohol for no less than 10 cents per gram of the substance. The rule requires a price of one euro per standard drink, and a bottle of wine containing 12.5 percent alcohol, equivalent to about 7.4 standard drinks, cannot be sold for less than 7.40 euros. The price of most premium brands will remain the same. Sources within Ireland’s national police service have reportedly warned the new pricing schedule for alcohol could lead to a surge in the use of illicit alcohol and substances, and it has already apparently led to cross-border shopping in Northern Ireland.
- Scotland: Irish authorities have cited the case of MUP in Scotland as evidence that this approach works, with alcohol purchases reportedly down 7.6 per cent in the 12 months after MUP was introduced in 2018.
Taxes
Angola: Excise stamps on alcohol become mandatory in March 2022 – Effective 01 March 2022, Angola’s General Tax Administration reportedly will impose the use of tax stamps on alcohol beverages, sugary drinks, and tobacco. Guidelines were published in the Diário da República on 15 July 2019 in Presidential Decree No. 216 concerning the placement of high security seals on products covered by the Special Consumption Tax in accordance with Law No. 16/ 2021. The program seeks to halt counterfeiting and contraband, while ensuring that taxes are paid.
Kenya: Tax hikes reportedly fueling illicit/cross-border trade – As the cost of alcohol beverages in Kenya has increased due to recent excise duty hikes, traders reportedly are turning increasingly to illicit trade, importing cheaper goods from Tanzania, Uganda, and Ethiopia. According to the Kenyan Association of Manufacturers, excise duties, which are adjusted annually, now comprise between 50 and 60% of the cost of alcohol products in Kenya. According to Kenya’s Anti-Counterfeit Agency, illicit trade costs the government Sh153.1 billion (US$1.35 billion) annually in taxes. The country also reportedly loses as much as Sh100 billion (US$883 million) annually to counterfeiting activities.
Vietnam: National Assembly deputies in favor of increasing special consumption tax on alcohol and tobacco – Numerous National Assembly deputies and organisations in Vietnam reportedly support proposals to increase special consumption taxes on alcohol beverages and tobacco ostensibly to protect health and increase government revenue. A deputy has proposed increasing the excise tax on alcohol beverages over 20 degrees to 85%.
Health
Canada: Television Report on Alcohol – A recent national news story advocated for cancer warning labels on alcohol containers. The video can be viewed using this link CBC National News Feature.
International organisations
Nepal: Consumer welfare organisation urges Nepal to implement WHO measures to decrease alcohol consumption – Nepal’s Consumer Welfare Protection Forum has reportedly charged Nepal’s government with failing to fully implement the measures suggested by the World Health Organisation’s Global strategy, failing to prevent “the rampant use of alcohol in the country.” Existing law reportedly allows shops to sell alcohol beverages from 10 am to 10 pm, prohibits the sale to youth under the age of 18 years, and includes strict licensing provisions, quality control, card system enforcement, and advertising restrictions, but the Association said some local governments have not enforced the laws. The government has reportedly endorsed imposing a complete ban on alcohol advertisements, promotions, and sponsorships.
Canada: Quebec expands vaccine passport to purchase alcohol – Quebec’s Health Minister has announced a series of measures related to the province’s vaccination passport system. Effective 18 January 2022, Quebecers reportedly will be required to show proof of vaccination to enter the Quebec Liquor Corp. (SAQ) and government-run stores selling recreational cannabis (SQDC). The Minister said the measures are intended to slow the increase in COVID-related hospitalisations and to protect unvaccinated individuals. The Minister also indicated that Quebec will eventually require passport users to have three doses of a COVID-19 vaccine. Every adult in Quebec will reportedly be able to register for a third dose of a COVID-19 vaccine as of 17 January 2022. This measure has resulted in a spike in vaccination applications.
United States: New York governor supports permanent legalisation of to-go drinks – New York’s governor reportedly will ask the New York State Legislature to make the sale of “to-go” drinks at bars and restaurants legal, making permanent the emergency policy that helped the food and beverage industry to survive the pandemic. That policy ended when the state of emergency ended in June 2021. Her announcement was made as the Omicron variant drove daily cases to record highs, averaging more than 66,000 in New York State.
France: OIML launches new website – The International Organisation of Legal Metrology (OIML) launched a completely new website on 09 January 2022. Key changes will include a new look and feel; an improved general menu, navigation elements, and login/password retrieval; a “responsive” page structure that automatically adapts its layout to different screen sizes right down to mobile phone size; and the introduction of new coding techniques for certain most-visited pages.
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.