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
Business
- Alcohol sales in the United States? – This author argues that Americans have not been spending more during the pandemic on alcohol beverages. Although “to-go” alcohol sales from stores in the United States have risen sharply, that increase reportedly has not offset the loss in sales due to the closure and restrictions of businesses with on premise consumption spaces. Beer companies have been especially hard hit.
- A second ban on sales in South Africa? – Although individuals such as South Africa’s Minister of Police and a Member of Parliament have been discussing the prohibition of alcohol beverage sales, the ANC’s Secretary-General reportedly confirmed that a second ban on alcohol beverages was not discussed when ANC National Executive Committee members met during the last weekend of June 2020.
- Shifting policies during the pandemic – Policies regarding the pandemic continued to change, including the following: Ireland (More than 60% of bars remain closed, but pubs serving food were allowed to open and to sell alcohol so long as a meal worth €9 was served); Thailand (Their Phase 5 of re-opening began on 01 July 2020, permitting the sale of alcohol beverages until midnight); and the United States (As new cases of Covid-19 soared, the Governor of Arizona ordered a rollback of reopenings, closing bars and other businesses. Sixteen other states have paused or pulled back on reopenings, including Florida, Texas, and parts of California which have all closed bars again.)
Social Media and Online
- Advertising on social media platforms – A number of alcohol beverage producers, including Brown-Forman, Beam Suntory, Caledonia Spirits, and Diageo have reportedly joined other companies that have halted paid advertising on social media, concerned about the spread of hate speech, racism, and misinformation on social media platforms.
- Online sales banned in Thailand – On 02 July 2020, members of the Thai Ministry of Public Health met to monitor progress on alcohol control operations, reportedly approving a draft announcement from the Prime Minister that prohibits selling alcohol beverages online, due to concern that alcohol beverages could be delivered to children and adolescents.
Taxation – Minimum Unit Pricing
- WHO/Europe report – A new WHO/Europe report concludes that increasing the prices that consumers pay for alcohol is one of the most cost-effective tools available for policy-makers looking to reduce alcohol consumption and associated harm. It reportedly finds, however, that current pricing systems throughout the region vary greatly, are poorly aligned with available evidence, and have therefore been ineffective.
Trade
- France – Winemaking: This edition of the new publication, Revue Française d’Onologie, has a variety of articles (in French and English) on relevant wine trade issues and may be of interest.
- USMCA – The U.S.-Mexico-Canada Agreement (USMCA) entered into force on 01 July 2020, replacing the North American Free Trade Agreement (NAFTA). The new agreement’s many important provisions include maintaining duty-free treatment for spirits, preserving recognition of distinctive products, and introducing new norms regarding certification for alcohol beverages.