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.