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 trade
United States: Counterfeiters purchasing used bottles online – In addition to taking empty bottles from hotel and bar recycling bins, counterfeiters are reportedly purchasing empty bottles of premium brand spirits online for up to $380 per bottle. This article asks whether online marketplaces are doing enough to counter opportunities for scammers to introduce a counterfeit spirits market in the United States. As the quality of counterfeits increases, the development of high-tech countermeasures such as through-the-glass chemical analysis is years away. But some distilleries are placing holographic images on their seals, adding QR codes to their labels, and placing security tags inside the caps on some bottles.
Innovation
China: Industry urged to innovate, including low-alcohol beverages, to produce more global brands – China’s Ministry of Industry and Information Technology has reportedly proposed guidelines for Chinese enterprises that make consumer goods and tools, but lack sufficient supply of mid-to-high end products and globally well-known brands. Examples of products encouraged by the Ministry include diversified, trendy, individualised, and low-alcohol beverages aimed at younger and foreign consumers.
International Trade
India-United Kingdom: Talks for free trade agreement underway/UK hopes to remove whisky export tariff – The United Kingdom and India have formally launched free trade agreement talks in New Delhi, hoping to increase bilateral trade by billions of pounds. The United Kingdom hopes to gain lower-tariff access to the Indian market, while India is seeking preferential tariff treatment, as well as greater opportunities for Indians to study and work in Britain. The UK government reportedly is targeting removal of duties as high as 150% on whisky exports.
Labelling
Argentina: Plans for mandatory pregnancy warning label for wine – On 07 January 2022, Argentina’s National Institute of Viticulture published improvements to wine labelling via Resolution 26/2021 in the Official Gazette, indicating that new labels for wine must include a pictogram consisting of a circle with a crossed bar over a silhouette of a pregnant woman to indicate the product is not suitable for consumption during pregnancy. Labels printed prior to this standard that do not meet these conditions may only be used with the prior authorisation of the National Institute of Vitiviniculture (INV) within the periods determined by it. Homemade and craft wines are included within the scope of this standard.
South Korea: Plans to implement mandatory calorie and nutrition labelling – South Korea’s Fair Trade Commission reportedly may give administrative notice in February 2022 of mandates regarding the labelling of calories and nutritional information (such as sugar, saturated fat, and cholesterol) for all alcohol beverages sold in South Korea.
Minimum Unit Pricing
Ireland: Minimum alcohol pricing driving consumers into Northern Ireland – Ireland’s new minimum alcohol pricing rules reportedly are driving shoppers to Northern Ireland in search of cheaper prices. Under Ireland’s new law, a standard bottle of wine may not be sold for less than €7.40, a can of beer for less than €1.70, gin or vodka with an alcohol content of more than 40% for less than €20.70, and a 700ml bottle of whiskey for less than €22. The price of 24 cans of beer will reportedly rise from €24 to €40.71.
- Ireland: Who benefits from MUP? – This article looks to Scotland and Wales as it considers who benefits from minimum unit pricing, whether MUP leads to increased drug use, and how it impacts businesses.
Taxation
Turkey: Special consumption tax on alcohol increase announced – The Turkish Statistical Institute announced the Domestic Producer Price Index (PPI) inflation as 79.89% for 2021, the highest in Turkey over the last two decades. The PPI inflation during the second half of 2021 was 47.39%, triggering an automatic increase in the fixed-amount Special Consumption Tax (SCT), which in addition to VAT and tariffs, accounts for approximately 65% of the price of beer and distilled spirits in Turkey. Market experts report more people dying or going blind after consuming illicit alcohol to avoid paying the high taxes.
Argentina: National deputy intends to reintroduce unsuccessful zero BAC bills from 2013 and 2015 – Argentina’s national deputy reportedly intends to reintroduce his “Zero Alcohol” project – zero blood alcohol content legislation that he unsuccessfully introduced in 2013 and 2015, citing data presented by the National Road Safety Agency that road accidents are the leading cause of death among young Argentinians between 15 and 35 years of age.
United States: Relaxation of state alcohol laws compared to waning days of Prohibition – As state legislature pass bills relaxing state alcohol laws, some are reportedly comparing the changes to the waning days of Prohibition. Fifteen states have extended by two-to-five years temporary pandemic relief legislation allowing cocktails-to-go, and sixteen other states have made their laws permanent. Nine states have changed laws or regulations making delivery of alcohol directly to the homes of consumers easier, and at least six other states are reportedly considering similar legislation.
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.