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: Southwest province producing ice wines – This article describes the growth of the ice wine sector in Yunnan Province, which it says has “reached a significant scale” after ten years of development, revitalising that mountainous region and boosting the income of farmers there.
European Union: New EU labeling laws for wine take effect on 08 December 2023 – This European Commission Notice (C/2023/7808) provides technical answers (French version here), discussed with experts from EU Member States, to questions that the Commission has received on the implementation of new European Union wine labelling provisions following the amendment of Regulation (EU) No 1308/2013 of the European Parliament and of the Council and Commission Delegated Regulation (EU) 2019/33. The document was intended to assist national authorities and businesses in being able to comply with this EU legislation. Significantly, the Commission Notice notes that only the Court of Justice of the European Union is competent to authoritatively interpret Union law.
- CEEV calls on EC to modify guidelines, or destruction of newly printed labels may be necessary – Comité européen des entreprises vins (CEEV) has called on the European Commission to modify guidelines for the new wine labeling laws, saying “We cannot accept a new interpretation, published 14 days before the date of application, that will imply, on the one hand, the destruction of hundreds of millions of labels already printed and, on the other, our incapacity to print new labels in time to comply with the new regulation deadline.” Labels prepared for the new laws reportedly include the letter “i” along with the QR code, but the Commission’s guidelines suggest that symbol is not sufficiently clear for consumers.
European Union – New Zealand: European Parliament approves free trade agreement – The European Parliament has approved the New Zealand – European Union Free Trade Agreement. New Zealand’s Minister of Trade expressed hope that the agreement, which would remove tariffs on wine products, might enter into force “as early as the first half of 2024.” The agreement was signed on 9 July 2023 in Brussels.
Germany/Czech Republic/Greece: VAT/alcohol tax rates increasing in 2024 – Germany will increase the value-added tax (VAT) rate on “food taken away” from restaurants and cafes and for catering to 19% in 2024. The rate was temporarily reduced to 7% to offer relief to businesses during the pandemic. The German hotel and restaurant sector has warned that the increase will result in “a wave of bankruptcies.” The Czech Republic’s President has reportedly signed legislation establishing two VAT rates (12% and 21%), moving draft beer to 21 percent. That country‘s alcohol consumption tax will be raised 10% in 2024 and an additional 5% in 2025. And Greece will increase its VAT rate for no-alcohol beer and soft drinks from 13% to 24% on 01 January 2024.
Japan: Proposing GI protection for Single Malt Welsh Whisky from UK – Japan’s National Tax Agency has reportedly proposed to recognise Single Malt Welsh Whisky as a geographical indication alcoholic beverage from the United Kingdom. The agency will accept public comments on the proposal through 01 December 2023. Further information can be found HERE.
United Kingdom: Alcohol duty to be frozen until August 2024 – Britain’s Chancellor has announced his decision to freeze duty on all alcohol beverages – including beer, cider, distilled spirits, and wine – until 01 August 2024. The Wine and Spirit Trade Association (WSTA), which responded to news of the freeze as a “huge relief,” reported that the previous duty increase on 01 August 2023 “resulted in a 20% decline in spirit sales and a double-digit drop in wine.”
Netherlands: Connection for alcohol interlock device required for newly registered cars by July 2023 – Netherlands reportedly will require the installation of plugs to which alcohol interlock devices can be connected in all newly registered cars by 07 July 2024. The use of alcohol-sensitive immobilisers is apparently used in Sweden and Finland, where bus, taxi, and truck drivers blow into the devices before beginning work.
United Kingdom: Advertising authority issues guidelines for no/low alcohol beverages – The Advertising Standards Authority, the UK’s independent advertising regulator, and its sister organisation, the Committee of Advertising Practice, have reportedly issued new rules and guidance for beverages with an ABV of 0.5% or less, which will take effect on 14 May 2024.
Canada: British Columbia grape production fell by 50% due to extreme weather – The head of Wine Growers British Columbia reports that weather events, including drought, record-low temperatures with heavy snow, and floods, reduced grape production by 50 percent in 2023. The organisation estimates that 29% of their total acreage will require replanting.
Global: Hops/barley production threatened by climate change – Researchers warn that climate change – with its excessive heat, drought, and unpredictability – is causing conditions under which the cultivation of hops and barley will become “increasingly difficult.” A study accounting for nearly 90% of hop-growing regions published in Nature Communications projected that production of hops in the Czech Republic, Germany, and Slovenia will fall by 4 – 18% by 2050. The researchers have called for “immediate adaptation measures to stabilize an ever-growing global sector.”
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.