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.
Australia: Chinese tariffs cost Australian wine exports nearly $1 billion – Figures from Wine Australia reportedly show Australian wine exports fell by 30% in value during 2021 due to very high deposit tariffs imposed on Australian wine exported to China. However, noting the resiliency of the Australian wine sector, Wine Australia general manager of corporate affairs and regulation & FIVS Presidential Council Member Rachel Triggs said that exports – excluding mainland China – had increased by 7% in value to $2 billion with the value of exports increasing to Hong Kong (up 45% to $191m), Singapore (up 108 % to $166m), South Korea (up 74% to $47m), Taiwan (up 65 % to $31m), and Thailand (up 31 % to $28m). During the second half of 2021, the global shortage of container ships as well as pandemic-related labour shortages though made reaching markets such as Europe and the United States particularly challenging for wine exporters.
United Kingdom: Changes to alcohol duties will lead to higher wine prices, less choice – Proposed changes to alcohol duties in the United Kingdom’s budget delivered on 27 October 2021 by Chancellor of the Exchequer will reportedly lead to higher wine prices and less choice. The new alcohol duties, which would start in 2023, would create one band based on alcohol content for wines with an ABV (Alcohol by Volume) between 8.5% and 22%. According to the Wine and Spirit Trade Association (WSTA), the prices of 70% of still and sparkling wines would increase, as would 80% of all still wine, 95% of red wine, and 100% of all fortified wines. The WSTA calculates that implementing the changes would result in an increase in costs of about £250m each year for the wine trade. Because the administrative burden would prove most difficult for small and medium merchants, consumers would be left with fewer choices.
Global: OIV meets with WHO to urge cooperation on alcohol policies and differentiates wine from other products – On 03 February 2022, the International Organisation of Vine and Wine (OIV) met with the World Health Organisation (WHO) to discuss the role of wine in alcohol policies and to point out how wine was different from other products in the case of harmful consumption. The OIV reportedly described how wine was part of a healthy lifestyle, pointing to research into the health effects of moderate wine consumption. The OIV also encouraged transparent cooperation between the two organisations in promoting a healthy lifestyle.
European Union: Italian MEP seeks to ease EC special committee report on fight against cancer – An Italian Member of the European Parliament has reportedly sought support for amending the report of the European Parliament’s special committee on the fight against cancer (BECA), suggesting that the report should focus on the health effects associated with harmful use rather than alcohol consumption. Instead of calling for health warning statements on alcohol bottles as the report does, his amendment recommends that alcohol bottles should contain information on responsible consumption.
- Research: Serious health conditions are multifactorial – Although the European Parliament’s special committee on beating cancer (BECA) states that no alcohol consumption is without risk, it is not correct to isolate alcohol consumption as the cause of conditions such as cancer and heart conditions that are caused by a number of reasons. According to the Association for Cancer Research’s Fourth Cancer progress report (2014), significant contributors to cancer risk are ranked as coming from smoking (30%), obesity (20%), infections (15%), lack of physical activity (5%), unhealthy diet (5%), and occupational hazards (5%), with the harmful consumption of alcohol beverages contributing 3% to the overall incidence of cancer.
European Union: EC may exclude alcohol from agri-food promotion policy – During its review of the European Union’s “From Farm to Fork” strategy, which seeks to guide the EU toward more sustainable consumption and support European environmental objectives, the European Commission may decide to exclude meat and alcohol from its promotion policy, which is used to open new market opportunities within the EU, as well as in foreign markets.
Russia: Senate committee considers proposal to revoke citizenship for the circulation of illicit alcohol – Russia’s Federation Council has proposed depriving Russians, who are involved with the circulation of illicit alcohol, of their citizenship. The bill was submitted to the State Duma in December 2021 and is reportedly part of the presidential initiative which may be considered by the State Duma in mid-February 2022.
Study: Lancet article charges industry with influencing global alcohol policies – An article, “Industry influence over global alcohol policies via the World Trade Organization: a qualitative analysis of discussions on alcohol health warning labelling, 2010–19,” published in the Lancet Global Health concludes that discussions during the World Trade Organisation Technical Barriers to Trade Committee meetings on alcohol health warnings advanced arguments used by the alcohol sector to “stall” the use of ten alcohol labelling policies proposed by the Dominican Republic, India, Ireland, Israel, Kenya, Mexico, South Africa, South Korea, Thailand, and Turkey. Although only a minority of challenges explicitly referenced industry, the study concluded that increased transparency about vested interests might be needed to overcome industry influence.
United States: Experts advise growers re fire impact at the Unified – A panel of experts advised wine growers and vintners during the Unified Wine Grape Symposium held in Sacramento, California at the end of January. Presentations included first-hand accounts of smoke inundated vineyards, as well as presentations by one of California’s leading smoke impact researchers who presented the latest findings of a USDA funded paper; by an attorney who discussed how to head off potential disputes by including certain provisions in grape purchase agreements; and by an insurance expert who discussed insurance coverage options.
Finland/Sweden: Removing COVID restrictions as new Omicron case numbers fall – As hospitalisations from the Omicron variant begin to fall, the Finnish government has said restaurants may now remain open until midnight and curbs on public gatherings will end on 14 February 2022. The government hopes to remove all other restrictions – including the COVID-19 passports in use since mid-October which allow only individuals with vaccinations or a recent negative test result to use public venues – subject to how the pandemic develops in Norway and Denmark in early March 2022. The Swedish government indicated that it may announce on 09 February 2022 whether it will begin to phase out the majority of its COVID restrictions, beginning on that date. Although the Swedish Public Health Agency reported 45,000 to 69,000 new cases daily during late January 2022, it reported about 39,000 new cases on 01 February 2022.
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.