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.
Illicit markets
Kenya: One-third of survey respondents knowingly buy illicit goods – A survey of 2,400 individuals in 24 counties throughout Kenya reportedly found that one-third of the respondents knowingly purchase illicit goods, 50% had seen illicit alcohol or tobacco on sale during the previous two days, and one in four people feared retaliation if they reported illicit activity. Stop Crime Kenya (StoCK), which conducted the survey, called on the government to prioritise the fight against illicit trade. According to the Anti-Counterfeits Authority (ACA), Kenya loses more than Sh153 billion (US$1.38 billion) in tax revenue annually to illicit trade, with tobacco and alcohol products among the most frequently traded.
Malaysia: Raising taxes on alcohol and tobacco may backfire and lead to greater illicit activity – An economist from the Malaysia University of Science and Technology has cautioned the government against raising duties on alcohol or tobacco to increase government revenue, arguing that the higher taxes will result in more illegal activities, as well as increased social harm from the consumption of illicit alcohol and the introduction of low-quality cigarettes into the market. The economist urged the government to focus instead on economic recovery to boost government revenue.
Trade
Chile: Wine exports drop 18% in August 2021 due to global logistics – According to the monthly report of Vinos de Chile, the volume of bottled wine exported from Chile during August 2021 fell 17.3% and the value fell 14.6%, compared to August 2020, due to a lack of containers and other logistical problems. Demand from China continued to grow, however, increasing in volume by 11.5% and in value by 27.5%, compared with August 2020.
Health
Global: New study says “no safe level of drinking” claim in 2019 was flawed – A study of 500,000 individuals that was based on genetics concluded in 2019 that consuming even one or two alcohol beverages per day increased blood pressure and the chance of having a stroke, overturning claims that light drinking could be protective. However, a paper that will be published in the International Journal of Epidemiology reportedly has determined that the 2019 analysis was flawed. While unable to define the precise safe amount of alcohol consumption, the paper concludes that consuming a glass of wine or beer “every other day” is acceptable.
Denmark: Revising responsible consumption guidelines as survey shows 20% exceeding current limit – According to the Danish Health and Medicines Authority, the National Board of Health is revising its recommendations for healthy consumption of alcohol beverages. In 2010, the Board had concluded that women who consume seven drinks per week and men who consume fourteen have a low risk of becoming ill from alcohol. A recent study by the research institute YouGov, conducted on behalf of Alcohol & Society and TrygFonden, reportedly found that nearly 20% of the adult population in Denmark currently exceeds those risk limits.
Russia: State Duma deputy proposes completely banning alcohol sales or raising prices to match European levels – A Russian State Duma deputy chairperson reportedly proposed to completely ban the sale of alcohol, or at least raise its cost to the European level, following the example of Chechnya or Dagestan where purchasing alcohol beverages is very difficult. The deputy has not yet introduced draft legislation regarding his proposal.
World Health Organisation
Lithuania: WHO consumption calculation methods may not include cross-border purchases of alcohol – The Lithuanian Association of Alcoholic Beverage Producers and Importers has reportedly questioned the WHO’s method for tallying consumption of alcohol beverages, which may not account for purchases in neighboring states where alcohol prices may be lower. Lithuania’s Department of Tobacco and Alcohol Control had announced earlier that according to the WHO, consumption in Lithuania had decreased by 3 liters of pure alcohol per person per year, and the WHO’s representative in Lithuania had earlier credited the fall in consumption to the implementation of a comprehensive alcohol control policy. But the Association questioned whether the WHO simply accepted data provided by its member states, which did not include alcohol purchased from neighboring countries.
Sobriety tags
United Kingdom: Alcohol tags to prevent re-offending – Britain’s Justice Secretary reportedly suggested that thousands more criminals will be electronically tagged in the coming years to prevent reoffending, monitor alcohol use, and prevent domestic abuse. The GPS tagging project, which began in April 2021, was recently expanded to parts of England and Wales, and could be rolled out nationwide. The so-called sobriety tags, which gauge alcohol consumption by monitoring sweat every 30 minutes, have been used in the case of more than 1,500 offenders serving community service sentences during the past year to alert probation services if alcohol is detected in their sweat sample.
Zimbabwe: Bars to reopen only for the fully vaccinated – Noting the government’s concern that the continued closure of licensed bars and nightclubs had resulted in a loss of income, growing unemployment, and the mushrooming of illegal outlets, Zimbabwe’s Information Minister reportedly announced that bars and nightclubs will be allowed to reopen, but only to patrons who are fully vaccinated. Bars and nightclubs have been closed for more than one year. Only bottle stores, hotels, lodges, and licensed supermarkets have been permitted to sell alcohol beverages.
Australia: Wine Australia welcomes new CEO – FIVS member Wine Australia welcomes the appointment of Dr. Martin Cole as its new CEO, effective 15 November 2021. Dr. Cole joins Wine Australia from the University of Adelaide, where he is the Head of School, Agriculture, Food and Wine. Dr. Cole brings extensive experience from government, academia, and industry – including the broader agricultural sectors – and has held senior leadership positions at the Commonwealth Scientific and Industrial Research Organisation (CSIRO), overseas, and in larger commercial companies.
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.