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.
ECONOMIC SUSTAINABILITY
Regulatory Developments
- Wine Institute Petition on Measurement of Carbohydrates: In a petition submitted to the U.S. Food and Drug Administration, the U.S. wine industry asked the agency to change its method for measuring carbohydrates in wine to one consistent with international regulations and comparable with carbohydrate measurements used in other alcohol beverage sectors. Currently approved methods in the United States reportedly overestimate levels of carbohydrates in wine. To read the submission made by the Wine Institute and Wine America on 08 June 2020, click here.
- Ireland: Alcohol Action Ireland has reportedly called on the three political parties attempting to form a new government to implement key measures – on alcohol pricing, labelling, and advertising and promotion – in the Public Health Alcohol Act 2018, which was enacted nine months ago. The organisation charged that the alcohol beverage industry has used the coronavirus pandemic to delay implementation of the legislation.
Labelling
- Seven-country study on support for alcohol control: A new study of seven countries – including Australia, Canada, China, India, New Zealand, the United Kingdom, and the United States – conducted by the George Institute for Global Health measured the level of support for 14 alcohol control initiatives relating to a range of issues including alcohol labelling, pricing, and promotion. Support for the policies was generally higher in India (80-86%) and China (57-85%) and lower in the United States (33-72%) and Canada (35-68%). Support was highest for labelling requirements, particularly for pregnancy warnings (67-85%) and standard drink quantity information (63-83%).
- WHO report on alcohol labelling practice in Europe: Health Evidence Network synthesis report 68, issued by the World Health Organisation, reportedly notes that alcohol labelling, which would provide consumer information on the ingredients, nutritional values, and harms associated with alcohol, is not mandatory in Europe. The report synthesises evidence on alcohol labelling practices in that region and describes factors affecting implementation of that policy.
Trade
- Danger of EU retaliatory tariffs against U.S. alcohol? European Union Trade Commissioner Phil Hogan reportedly suggested the possibility of EU sanctions against U.S. goods due to the long-running civil aircraft dispute. The United States has imposed tariffs on $7.5 billion worth of EU goods – including wine, spirits, and liqueurs – as a result of this dispute. Speaking at an informal meeting of EU trade ministers, Hogan reportedly said, “The EU will have little choice but to exercise its retaliation rights and impose our own sanctions in the Boeing case once we have the WTO award.” The WTO Arbitrator will reportedly not decide on the dollar amount of any award to the EU before the end of August.
- Danger of U.S. retaliatory tariffs due to European digital services taxes? This author suggests that – as the EU and member states enact or consider enacting digital services taxes, and the U.S. Trade Representative responds by launching an investigation – the danger of more U.S. tariffs on European wines has returned, particularly for Italy which has enacted a three percent tax on revenue from digital advertising services, targeting American companies Facebook and Google. The USTR reportedly has focused on other countries as well, including Austria, Turkey, India, and others. See also this piece opposing the imposition of U.S. retaliatory tariffs.
Taxation – MUP
- Agreed upon programme for Ireland: As Fianna Fáil, Fine Gael, and the Green Party form a new coalition government, they have reportedly agreed on a government programme that will include minimum unit pricing (MUP) for alcohol.
- Fall in alcohol consumption in Scotland stalls: Minimum unit pricing, introduced in Scotland in May 2018, was credited with cutting sales of alcohol beverages to the lowest levels since 1994 by targeting low-cost, high-strength products. But the latest report by Public Health Scotland has found no further decrease in sales since the regulations were imposed – while the number of deaths attributable to alcohol consumption continued to rise.
- Although the total volume of alcohol sales per adult in Scotland in 2019 remained at its lowest level, alcohol-related deaths were more than 4.5 times higher in the 10% most deprived areas of Scotland, compared with the 10% least deprived areas. Although alcohol-related deaths had fallen from 2003 – 2012, they have been rising in recent years, particularly for men.
SOCIAL SUSTAINABILITY
Studies
- Canadian drinking guidelines may be too high: Researchers from the University of Victoria in British Columbia reportedly have suggested that Canadian national drinking guidelines may be too high after they found that 50% of cancer deaths resulting from alcohol use occurred in people drinking moderately, and 38% of all alcohol-attributable deaths occurred among former drinkers or by people drinking below weekly limits. The study also found that alcohol consumption within the guidelines offered some protection for women from death from heart attack, stroke, and diabetes.
- Confusing dementia with ARBD: These authors from the University of South Wales write that the general public and even clinical specialists are not sufficiently aware of alcohol-related brain damage (ARBD), which can impair memory, thinking, planning, and reasoning, causing changes in personality and behaviour. Research reportedly suggests that up to 24 percent of dementia cases may actually be ARBD, which is a preventable, treatable, and potentially reversible condition, if recognised and treated early.
Guidelines
- American Cancer Society: Revising its guidelines from 2012, the American Cancer Society reportedly now recommends that people completely eliminate alcohol from their diets to reduce cancer risks. If people choose to drink, the ACS recommends that they limit consumption to one standard drink for women and two for men.
- U.S. Dietary Guidelines Advisory Committee: A draft report by a committee convened by the U.S. Departments of Agriculture and Health and Human Services reportedly recommends that men reduce their alcohol intake to one drink per day rather than two. The Dietary Guidelines Advisory Committee, which was established in the early 1980s and convenes once every five years, says that consuming the current limit of two drinks per day is associated with a “modest but meaningful increase” in death rates due to all causes, compared with just one drink per day.
School Programmes & Underage Drinking
- Philanthropic efforts in New Zealand schools: The director of Alcohol Healthwatch, a Ministry of Health funded NGO, questions whether philanthropic programmes funded by the alcohol beverage industry should be allowed in New Zealand’s educational spaces.
- Estonia: The National Institute of Health Development found during trial purchases that retail and catering establishments asked minors to provide identification when purchasing alcohol beverages only 40.5% of the time. The agency found that large retail stores requested documentation 69% of the time, gas stations asked for it 48% of the time, and small stores asked for it 39% of the time.
- Latvia: The Parliament has reportedly passed legislation to fine minors between the ages of 14 and 18 for the use or presence of alcohol beverages or other intoxicating substances, as well as for the purchase or storage of alcohol beverages. The legislation stipulates that the fine will be in the range of 10 to 35 Euros.
Drink Drive
- Austria: The proportion of alcohol-related traffic accidents increases significantly during the summer months of June through August.
- Canada: Deaths in Saskatchewan due to impaired driving averaged 54 annually between 2009 – 2018, but the number fell to 21 in 2019, the lowest number ever. New legislation passed in 2014, 2017, and 2018 resulted in tougher penalties for impaired drivers, including vehicle seizures, licence suspensions, and steep financial penalties.
- Estonia: The Road Administration of Estonia has reportedly launched a drink driving campaign, urging individuals to prevent inebriated companions from driving, or calling police for assistance.
- Finland: A new survey reportedly shows that more than half of those surveyed would prefer that the current limit for drink-driving while recreational boating should be lowered to the same level as for road transport. One in four surveyed thought no level of drinking should be allowed for recreational boating.
- Malaysia: The Transport Ministry has reportedly finalised amendments to Sections 41 to 45 of the Road Transport Act 1987, introducing stiffer penalties for drink driving. It is not known, however, whether Malaysia will change from its current blood alcohol content limit of 0.08 percent to that of 0.05 percent, which is recommended by the World Health Organisation.
- Slovenia: The Traffic Safety Agency and the police launched a nationwide prevention campaign to prevent driving under the influence of alcohol, drugs, or psychoactive substances by monitoring the conditions of drivers more strictly from 15 to 21 June 2020. They noted that more than every third death in traffic was caused by a drink driver.
ENVIRONMENTAL SUSTAINABILITY
- A climate atlas for Australia: The Climate Futures Group at the University of Tasmania has developed Australia’s Wine Future: A Climate Atlas, which describes short- and long-term trends for Australian wine regions until 2100. The atlas includes indices for individual regions, focusing on heat accumulation and aridity, as well as the likelihood of heatwave and frost, helping growers and wineries adapt for their future.
- Climate change challenges for Burgundy: This author suggests growers must increasingly rethink accepted wisdom about the best terroirs as warmer growing seasons impact vineyard management practices throughout the world.
INDUSTRY NEWS
- Lynne Omlie honoured by NCSLA: Long-time General Counsel of the Distilled Spirits of the United States (DISCUS) Lynne Omlie, who now serves as a senior advisor at DISCUS, was inducted into the National Conference of State Liquor Administrators (NCSLA) Hall of Fame during its annual conference. The Hall of Fame honours past and present NCSLA members who have made significant contributions to the organisation and the beverage alcohol industry at large. Lynne, who joined us at many annual FIVS meetings, was the first woman in NCSLA’s history to receive this tremendous honour.
- Hamid Mamdouh nominated to lead WTO: On 09 June 2020, the Egyptian government nominated King & Spalding’s Abdel Hamid Mamdouh, who has been with the firm since December 2017, to lead the WTO after Roberto Azevêdo resigns from his post as Director-General at the World Trade Organisation effective at the end of August. FIVS Members may recall that Hamid participated in a panel at our 2019 FIVS meeting in Geneva. You may be interested in this profile