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.
Global: Billions could be lost due to marketing restrictions – Following the introduction of marketing restrictions for tobacco products as well as proposals to extend similar legislation to more sectors, a report estimates that businesses from the food and drink industry could lose over $500 billion due to marketing restrictions. The study reportedly concludes that nine companies could each lose nearly a quarter of their enterprise value and over 50% of brand contribution, and it suggests that a number of alcohol beverage companies could face 100% revenue exposure if marketing restrictions were imposed on a global scale.
Australia – China: WTO confirms Australian filing of complaint re China – The World Trade Organisation has reportedly confirmed that Australia has filed a formal complaint regarding duties imposed by China on Australian bottled wine imports. Australia and China will now have sixty days during which to confer, and a WTO dispute panel may be set up if the two countries fail to reach agreement. Relations with China worsened after Australia called for an international inquiry into the origins of the coronavirus, which was first reported in China in late 2019.
- Australia: Wine industry entering new markets due to Chinese tariffs – Australian wine growers are reportedly diversifying into other markets after tariffs imposed by China effectively closed that market to Australia. Trade with the United Kingdom – which is now Australia’s largest wine market in terms of volume and value – has reportedly grown by 30% during the last three months. Australian wineries are also searching for new long-term markets in Canada, Sweden, and the United States, as well as Asian markets including Singapore, South Korea, and Vietnam.
United Kingdom: Britain may join TPP – Britain reportedly began formal negotiations on 22 June 2021 to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which removes 95% of tariffs between its members, which include Japan, Canada, Australia, Vietnam, New Zealand, Singapore, Mexico, Peru, Brunei, Chile, and Malaysia. The UK’s trade department has stated that the deal would open new markets for services industries, lower tariffs on goods including cars and whisky, and create new opportunities for UK farmers. The department expects that exports to these countries will increase by £37 billion, a 65% rise, by 2030.
International Organisations: WHO discussions with the spirits, beer, and wine sectors – FIVS participated in a 29 June 2021 dialogue with the World Health Organisation. Click here for a brief description.
- Please contact Karen Geronimo of the FIVS Secretariat if you would like to participate in the social sustainability working group, as well as a subgroup that works on this matter.
Italy: Adopting single national sustainability standard for the wine sector – The Italian Wine Union (UIV) has reportedly announced that Italy will be the first country in Europe to adopt a single national sustainability standard for the wine sector. The head of UIV has reportedly said that it needs now to accelerate with producers to allow companies to apply the new model starting with the next harvest.
France: Breakthrough with enzymatic recycling process revealed – A consortium reportedly announced the successful production of the world’s first food-grade PET plastic bottles produced entirely from enzymatically recycled plastic. PET plastics that would otherwise be incinerated could now be recycled, breaking down 97% of the plastic in only 16 hours (peer-reviewed article in Nature). Carbios reportedly will break ground in September 2021 on a demonstration plant, before launching a 40,000-ton capacity industrial facility by 2025.
Global: Article encouraging sustainable packaging for wine sector – This article considers the extent to which the wine sector might change its packaging as part of its brand stories and strategies. Younger consumers may be interested in paper bottles which reportedly have an 84% lower carbon footprint and whose wine lasts for months once opened. Other matters discussed in the article included PET (polyethylene terephthalate) bottles, canned wine, wine taps, biodegradable labelling, and stores offering kegs allowing customers to fill their own containers. The author notes, however, that these forms of wine packaging do not allow for wine ageing.
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.