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.
OF NOTE
- Australia – Forest Fires: As touched upon in FIVS’ 07 January Alert, the Australian wine sector is organising to offer support to the industry by first understanding better the impact of the bush fires on wineries. Wine Australia Chief Executive Officer Andreas Clark said that in some regions of South Australia, New South Wales, Victoria, and Queensland, individual vineyards and wineries “had suffered devastating damage which would take years to recover, and local regions and the sector more broadly would step in to assist.” Please click HERE for an assessment of the situation and how you might help (see also this piece).
- FIVS Secretariat News: We welcome Karen Geronimo, who is replacing Clea Prieto Perosanz in the FIVS Secretariat. Karen comes to us from the United Nations Educational, Scientific and Cultural Organisation, a specialised agency of the United Nations based in Paris, France. She will be based in the FIVS office, which is now located at 1, cour du Havre, 75008 Paris. We want to thank Clea for her tireless and superb work over the past four years. Please feel free to reach out to Clea and Karen (kgeronimo@fivslive.org) this week.
- New Wine Institute Website: As discussed in this press item, Wine Institute has launched a new website at www.wineinstitute.org. This site shares its public policy work at the state, federal, and international levels, and also offers a wealth of wine-related industry information.
ECONOMIC SUSTAINABILITY
- Market Trends
- This article discusses the extent to which the movement toward “wellness” has opened a lucrative market for non-alcoholic alcohol beverage products. The piece describes the diversity of profitable alcohol-free products being introduced into the market. At the same time, new types of beverages, such as seltzers, are rapidly growing.
- As discussed in detail in this piece, there has also reportedly been a slight decline in the consumption of wine in markets, such as the United States.
- This article discusses the extent to which the movement toward “wellness” has opened a lucrative market for non-alcoholic alcohol beverage products. The piece describes the diversity of profitable alcohol-free products being introduced into the market. At the same time, new types of beverages, such as seltzers, are rapidly growing.
- Promotions
- United States – Restrictions on Advertisements Overturned: A U.S. Appellate body ruled on 08 January 2020 that Missouri had illegally enforced a law and related regulations that restricted certain types of alcohol beverage advertisements by restaurants and other venues. The three-judge panel noted that while the State of Missouri had a right to seek an orderly market, the norms’ “practical operation restrict[ed] speech based on content and speaker identity.”
- Trade
- U.S. – Europe – “Zero for Zero”: On 14 January 2020, the Comité Européen des Entreprises Vins (CEEV) and Wine Institute signed a landmark statement of principles on trade and tariffs. The statement recognises the significance of the transatlantic wine trade and calls for the immediate elimination of all tariffs on wine, known as “zero for zero.” The agreement further calls on the United States and the European Union to refrain from targeting wine in unrelated trade disputes.
- More on Retaliation: In December, the U.S. Government announced that it would increase its tariffs on European wine and Scotch whisky as part of the ongoing dispute over aviation subsidies and now French taxes on U.S. technology companies. These increases would be in addition to the 25% tariff hikes announced in early October. On 12 December, an updated retaliation list was published which included products currently subject to additional duties, as well as goods not currently subject to higher tariffs. Up for consideration are wines from Italy and Portugal, as well as bulk wine, fortified wine, and sparkling wine, as well as other whiskies made in Europe, most notably Irish whiskey.
- This dispute and tensions between the United States and China have adversely affected U.S. and European wine exports, as well as restaurants and wine and spirits specialty stores. This situation has led members of the U.S. industry to testify against hiking tariffs, regardless of the prospects for success.
- This recap of the hearing describes how retaliation might affect many countries, including Greece (article in Greek language).
- The Scotch Whisky industry has been urging against further tariff hikes.
- Meanwhile, Indonesia has been reportedly clamping down on imports of European spirits and wine in an unrelated dispute over that country’s palm oil.
- This dispute and tensions between the United States and China have adversely affected U.S. and European wine exports, as well as restaurants and wine and spirits specialty stores. This situation has led members of the U.S. industry to testify against hiking tariffs, regardless of the prospects for success.
- Unit Pricing
- India – Restrictions on Prices: Establishments may reportedly not be able to sell liquor above a certain fixed minimum retail price. It appears that prices will be set in the new excise policy year of 2020-2021.
- United States – Challenging Alcohol Pricing Laws: The nation’s largest alcohol wholesaler has apparently joined with the nation’s largest independent alcohol retailer to ask the U.S. Supreme Court to throw out the Connecticut alcohol pricing laws. Southern Wine and Spirits argues that this law hampers the ability of wholesalers like itself to compete. The State of Connecticut and other respondents will have until 03 March to file responses.
SOCIAL SUSTAINABILITY
- Drinking and Driving
- Belgium – Considering Low BAC Limits: The Reformist Movement, Socialist Party Differently, and Green parties have submitted bills that would introduce legal blood alcohol content (BAC) limits of 0.2 mg/ml. Bicyclists would have a limit of 0.5 mg /ml.
- Denmark – Scooters: Several hundred people were reportedly injured last year on electric scooters – many of them seriously – and alcohol was alleged to have been involved in a number of these cases.
- International Organisations
- The SDG Indicator on Alcohol May Be Changed: The Sustainable Development Goal (SDG) 3.5.2 on alcohol may be revised. A German proposal, supported by the World Health Organisation, would reportedly change the focus of the indicator name from being on “harmful use of alcohol” to “consumption per se.”
- Responsible Consumption
- Canada – Allegations of Carcinogenic Effect: A message saying that drinking alcohol causes cancer appeared on ads in British Columbia’s transit stations and vehicles, restaurants and bars, and on the provincial agency’s social media platforms. This messaging is reportedly part of the provincial health agency’s Now You Know campaign which seeks to educate people about the alleged links between alcohol consumption and cancer.
- Ireland – Responsibility Sites: We reported in last week’s notable policy alert that Irish Minister for Health Simon Harris had reportedly contacted media outlets, asking them not to use alcohol industry-funded responsibility sites, such as Drinkaware. This piece takes the Minister to task for a flawed position and suggests that the public should be allowed to make their own determinations.
- United Kingdom – Study on Alcohol Harm: In the course of this effort, the Commission on Alcohol Harm has asked health professionals for evidence of harm, with a particular interest in hearing from nurses who have witnessed the effects of alcohol overuse while at work. This request is consistent with the Commission’s remit to examine current injurious use of alcohol, recent trends, and potential solutions for reducing alcohol harm. The group is also planning to assess the need to develop a new nationwide alcohol strategy, last updated in 2012.
- United Kingdom – Drinkers Exceeding Alcohol Limits: The UK chief medical officers’ guideline for men and women reportedly recommended not drinking more that 14 units per week on a regular basis. New research commissioned by the Yorkshire Cancer Research charity has found that 21% of drinkers exceed the recommended guideline every week. This study, which surveyed 3,000 adults, also determined that six in ten people were unaware of the weekly recommended limit.
- United States – Alcohol Related Deaths Reportedly Increase Significantly: A recent study under the auspices of the National Institute on Alcohol Abuse and Alcoholism and published in Alcoholism: Clinical & Experimental Research has reportedly found that the number of Americans who have died from alcohol-related problems annually more than doubled between 1999 and 2017. The study also found that the number of women drinking dangerous amounts of alcohol has risen sharply in the United States. The analysis examined deaths nationwide each year during this period that were reported as being caused at least partly by alcohol, including acute overdose, its chronic use, or in combination with other drugs. According to the study, nearly half of all alcohol-related deaths resulted from liver disease or overdoses on alcohol alone or with other drugs.
- United States – Moderate Alcohol Consumption may Reduce the Risk for Kidney Disease: Compared with those who abstain, participants in a study who consumed moderate amounts of alcohol were found to have a lower risk for developing chronic kidney disease.