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.
Reminder! – Please register [here] to join us on 09 and 14 December 2021 for FIVS’s virtual Round Table Series which will include –
- An interview with Laurent Scheer of Pernod Ricard on The World Health Organisation’s action plan and other international organisations – alcohol under a microscope; and a panel discussion with Patricia Callan of Drinks Ireland at Ibec and Kurt Moore of the South African Liquor Brand owners Association on Anti-alcohol measures – what is happening on the ground? – moderated by Simon Stannard of Wine and Spirit Trade Association on Thursday, 09 December 2021.
- A discussion with Ignacio Sánchez Recarte of Comité européen des entreprises vins on Labelling in the EU: A brief history, the U-label, and where is this all heading; a presentation by Mario Tomasoni of Oenoppia and Jean-Philippe Perrouty of Wine Intelligence on What do consumers really think about labelling; and a demonstration by Laurel Parker of FIVS-Abridge on the FIVS-APACE database, a tool for additives and processing aids – moderated by Katherine Bedard of Wine Institute on Tuesday, 14 December 2021.
- Please register HERE for those sessions you plan to join by Monday, 06 December 2021 (end of business day, Paris time). Log-in details will be sent only to those who register. There will be no charge for participating. FIVS non-members may contact the FIVS Secretariat at admin@fivs.org about attending these round tables, which are not open to members of the press.
Trade
Australia-China: China’s tariffs on imports squeezing Australia’s wine sector – At its peak, Australia’s wine exports to China were worth $1.26 billion annually, making up 41% of the overall value of Australian wine exports globally. During the past year, exports to China have fallen to $82 million after China imposed duties between 116.2% and 218.4%. Although the loss has not been covered by other buyers, Rachel Triggs of Wine Australia reports some promising signs: in Hong Kong, exports are up 120%; in Singapore, they are up 89%; in South Korea, exports increased by 84%; and in both Thailand and Taiwan, exports are up 50%.
Government policy
European Union: Parliament approves reforming the Common Agricultural Policy – During its plenary setting in Strasbourg on 23 November 2021, the European Parliament approved by a large majority the three compromise texts reforming the EU’s Common Agricultural Policy (CAP). The EU Council is expected to endorse the CAP package formally on 06 December 2021, and the new CAP rules would become effective on 01 January 2023.
United Kingdom: WSTA calls on government for help with supply chain chaos – The Wine and Spirit Trade Association (WSTA) sent a letter to the UK’s Transport Secretary, signed by 48 of the UK’s leading distributors and importers, calling upon the UK government to take urgent action regarding heavy goods vehicle (HGV) driver shortages and freight disruptions to avoid “supply chain chaos” over the upcoming holidays and beyond. Importing products reportedly takes up to five times longer than it did one year ago, pushing up costs and limiting the range of products available for sale to consumers. The WSTA advocates extending temporary visas for HGV drivers for a minimum of one year and called upon the government to facilitate better routing of freight, working in partnership with industry to achieve this goal.
Advertising
Ireland: New ban on alcohol advertising during sporting events comes into force – Effective 12 November 2021, Ireland banned alcohol advertising in sports areas during sporting events, part of the Irish government’s effort to reduce consumption of alcohol beverages under Ireland’s Public Health (Alcohol) Act 2018. According to the Alcohol in Moderation (AIM) digest for November 2021, other new restrictions include a complete prohibition on alcohol advertising at events aimed particularly at children, or where most participants or competitors are children, and a ban on alcohol sponsorship of events involving driving or racing motor vehicles. Penalties for contravention of the new restrictions include fines up to €250,000 and up to three years imprisonment.
Labelling
United Kingdom: Industry watchdog calls for alcohol labelling to remain voluntary – The Portman Group has reportedly called for labelling on alcohol beverages to remain voluntary after a report, Informing Alcohol Consumers: 2021 UK Market Review, found that 47% of leading UK brands already carry calorie information, 99% carry pregnancy warnings, 94% carry alcoholic unit information, 93% carry a reference to a responsibility message, and 79% carry the latest UK Chief Medical Officer low risk drinking guidelines. A consultation by the UK Department of Health and Social Care expected by year’s end could lead to the government enforcing new requirements on alcohol labels.
Research: Glass bottles found to be more sustainable than bag-in-box – Wine Intelligence research commissioned by Vinexposium reportedly found glass to be the most sustainable form of packaging available for wine – more sustainable than bag-in-box and other similar forms such as the “paper wine bottle” that incorporate layers of metallised film, plastic, and card, which are difficult to separate for recycling. Over 50% of glass material entering the UK waste stream is currently recycled, and glass that ends up in landfill does not give off harmful gases or have negative effects on marine life.
- European Union: Glass container recycling hits 78% in the EU – The European Union’s average recycling rate for glass packaging grew 2% since the previous year, reaching a record level of 78%. Supported by eleven national platforms, the multi-stakeholder stewardship partnership Close the Glass Loop has set goals to achieve a post-consumer glass container collection target of 90% by 2030. The vast majority of the 13.7 million tonnes of glass collected in the European Union are remelt into new glass bottles. Glass is reportedly a permanent material that can be endlessly recycled into new packaging.
South Africa: President announces government will not ban alcohol – On 28 November 2021, South Africa’s President reportedly announced that no further lockdown restrictions will be imposed on the sale of alcohol beverages in South Africa. The sale of alcohol beverages currently is permitted under licenced conditions, but they may not be sold from midnight until 4 a.m.
- Kurt Moore of the South African Liquor Brand owners Association (Salba) noted the desperate need for a successful holiday season if the South African alcohol, tourism, and hospitality industries are to recover and survive into the new year. The alcohol sector argues that any further restrictions on alcohol will permanently entrench the illicit trade in alcohol, which now comprises more than 20% of South Africa’s market.
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.