Barriers to Wine Trade. Andreas Clark Chief Operating Officer October 2012
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1 Barriers t Wine Trade Andreas Clark Chief Operating Officer Octber 2012
2 Barriers t Wine Trade Tariffs Labelling Cmpsitin & Prductin Certificatin
3 Tariffs Tariffs are designed t make imprted prducts mre expensive and t prvide an advantage t dmestic prducers. Tariffs in emerging markets are typically higher. India: 150% Vietnam: 100% Thailand: 54 60% Russia: 20% Krea: 15%
4 Wine Labels Labelling requirements vary acrss the wrld; Blending Rules Fd Standards Language Requirements Health Warnings Requirements f the imprting cuntry
5 BRAND NAME Brand names shuld nt mislead as t the rigin, age r identity f the wine. Australian Wine Labels VOLUME Mandatry. Must be 3.3mm in height. May be presented n the frnt r back label. DESIGNATION Mandatry. Must cnvey the true nature f the fd, fr example the wrd wine r the variety. COUNTRY OF ORIGIN Mandatry. Wrding is nt defined, fr example, Wine f Australia r Prduct f Australia. ALCOHOL CONTENT Mandatry. Wrding is nt defined. Tlerances vary between prducts. ALLERGENS Mandatry. Sulphites in cncentratins abve 10ppm and prcessing aids including milk and egg must be declared. 750mL 2010 Barssa Valley Cabernet Sauvignn WINE OF AUSTRALIA 13.5% ALC/VOL. CONTAINS SULPHITES PRODUCED WITH MILK PRODUCTS PRODUCED BY BEYOND WINES, 23 THE ROAD, ADELAIDE, SA L2005 NAME AND ADDRESS Mandatry. The name and street address f respnsible entity - must nt be pstal address nly. VINTAGE The harvest year. Vintage claims are ptinal but must be 85% if claimed. REGION (GI) GI claims are ptinal but must be 85% if claimed. Multiple GI claims are acceptable but must be 95% and listed in descending rder. VARIETY Variety claims are ptinal but must be 85% if claimed. Multiple variety claims are acceptable but varieties must STANDARD DRINKS be listed in descending rder. Mandatry. Labels must declare the number f standard drinks it cntains. Cntains apprx x.x standard drinks r lg acceptable.
6 China Wine Labels COUNTRY OF ORIGIN INGREDIENTS ALCOHOL CONTENT DESIGNATION PRODUCT TYPE VOLUME BOTTLING DATE NAME AND ADDRESS 1. Cuntry: Australia 2. Ingredient: 100% grape juice - sulphur dixide 3. Alchl: 13.5% (v/v) 4. Prduct Name: Red Wine 5. Prduct Type: Semi-Dry 6. Net Vlume: 750 ml 2010 Barssa Valley Cabernet 赤霞珠 7. Bttling Date: 2011 年 3 月 20 日 8. Distributr: Name & Address 9. Prducer: Name & Address Over-drinking is harmful t yur health WARNING STATEMENT New draft standard.
7 Canada Wine Labels 2010 Barssa Valley Cabernet Sauvignn PRINCIPAL DISPLAY PANEL FRENCH & ENGLISH ALCOHOL FORMAT COMMON NAME ALLERGENS NAME AND ADDRESS RECYCLING STATEMENT (cunty) Wine f Australia Vin d Australie Red Wine Vin Ruge 13.5% alc./vl 750mL CONTAINS: SULFITES AND MILK CONTIENT: SULFITES ET LAIT IMPORTED BY/ IMPORTÉ PAR: BEYOND WINES, ONTARIO, CANADA PRODUCED BY/ PRODUIT PAR: BEYOND WINES, 23 THE ROAD, ADELAIDE, SA, AUSTRALIA L2005 Return fr refund where applicable Cnsigné là ù la li le prescrit
8 USA Wine Labels BRAND LABEL PRODUCT DESIGNATION ALCOHOL FORMAT VOLUME STATEMENT COUNTRY OF ORIGIN GOVERNMENT WARNING SULFITE STATEMENT NAME AND ADDRESS 2010 Barssa Valley Shiraz 95% Vignier 5% 13.5% alc./vl. 750 ml Wine f Australia GOVERNMENT WARNING: (1) Accrding t the Surgen General, wmen shuld nt drink alchlic beverages during pregnancy because f the risk f birth defects. (2) Cnsumptin f alchlic beverages impairs yur ability t drive a car r perate machinery, and may cause health prblems. CONTAINS SULFITES IMPORTED BY TRAIL BLAZERS NY, NY PRODUCED BY BEYOND WINES, 23 THE ROAD, ADELAIDE, SA L2005 VINTAGE 95% r 85% if described by a State r SEA. REGION (GI) Mandatry if a vintage is claimed. 1 GI nly r cntiguus multi-states. VARIETY 85% single variety. Multiple varieties 100%. Percentages required.
9 EU Wine Labels 2010 Barssa Valley Cabernet Sauvignn REGION (GI) Nw ptinal. SAME FIELD OF VISION PRODUCT DESIGNATION ALCOHOL FORMAT VOLUME STATEMENT COUNTRY OF ORIGIN ALLERGENS STATEMENT NAME AND ADDRESS 750mL 13.5% VOL WINE OF AUSTRALIA CONTAINS MILK, SULPHITES ENTHÄLT MILCH, SULFITE IMPORTED BY BEYOND WINES, UK BT703HD PRODUCED BY BEYOND WINES, 23 THE ROAD, ADELAIDE, SA L2005
10 Health Labelling Octber 2006 WHO designated alchl as a special cmmdity wing t its txic prperties. Presented the WHO a mandate t pursue glbal actin n harmful use f alchl. Likely develpments Taxatin Restrictins n advertising and prmtin Health warnings Attempt t exclude alchl frm trade agreements
11 Health Labelling China (TBA): Over-drinking is harmful t yur health 过度饮酒对你的健康有害 USA Health Warning: GOVERNMENT WARNING: (1) Accrding t the Surgen General, wmen shuld nt drink alchlic beverages during pregnancy because f the risk f birth defects. (2) Cnsumptin f alchlic beverages impairs yur ability t drive a car r perate machinery, and may cause health prblems. UK Vluntary Health Warning: Australian Industry Vluntary Warning: French Health Warning: Mandatry (2007)
12 Health Labelling Thailand Health Warning: Drinking Reduces Driving Ability Sale t children under the age f 18 is prhibited Nt suitable fr children under 18 years ld Japan Health Warning: Cnsumptin f alchl by minrs is prhibited Alchl may nly be cnsumed by thse aged 20 r ver Taiwan Health Warning: Excessive cnsumptin f alchl is harmful t health T be safe, dn t drink and drive Excessive drinking is harmful t yu and thers Please d nt drink if yu are a minr Krean Health Warning: Excessive drinking may cause liver cancer r liver hardening and raise accident rate during driving r wrking. Warning: sale t peple less than 19 years ld is prhibited. Russia Health Warning: Mandatry frm February Алкоголь не для детей и подростков до 18 лет, беременным и кормящим женщинам, лицам с заболеваниями центральной нервной системы, почек, печени и других органов пищеварения Alchl is nt fr children and teenagers up t age 18, pregnant and nursing wmen, r fr persns with diseases f central nervus system, kidneys, liver and ther digestive rgans. * text fr illustratin purpses nly.
13 Health Warnings Thailand s prpsed health warnings:
14 Cmpsitin Significant differences in max residue limits fr agrichemicals. Idisyncratic requirements in varius markets, fr example: Brazil: Chlrides < 0.2 g/l Switzerland, Turkey: <10 mg/l histamine Russia: V.A.< 1.1 g/l EU: SO2< 150 ppm (red wine) Canada: Free SO2 < 70 ppm (LCBO <50) SAQ: H2S <0.1 mg/l
15 Prductin Krea: Ascrbic acid use renders the prduct unsaleable as wine and incurs higher tax. Brazil: N hybrid grape cmpnent (and limited in Turkey). Japan: N use f cpper sulphate. China: N use f metatartaric acid, CMC, DMDC, cpper citrate, bacteria
16 Certificatin Eurpean Unin: VI1 Certificate China: Certificate f Origin Certificate f Free Sale Japan: Certificate f Analysis Taiwan: Alchl Health Standard Certificate Brazil: Certificate f Analysis and Origin Imprt Certificate (fr wines abve 14% and chlrides)
17 Certificatin USA: COLA (Certificate f Label Apprval) Suth Africa: Cultivar Certificate Indnesia: Certificate f Free Sale United Arab Emirates: Certificate f Origin Vietnam: Certificate f Origin Certificate f Free Sale Philippines: Certificate f Free Sale Suth America: Certificate f Free Sale
18 Certificate Of Free Sale
19 VI1 Certificate
20 Trade Initiatives Australia s Free Trade Agreements In frce: New Zealand Chile USA Singapre Thailand Cncluded: Malaysia Negtiating: China Gulf Cperatin Cuncil India Japan Krea Indnesia Pacific Agreement Trans-Pacific Partnership
21 Wrld Wine Trade Grup WWTG Members: USA; Canada; New Zealand; Argentina; Chile, Suth Africa, Gergia Mutual Acceptance Agreement n enlgical practices (2002) Labelling Agreement (2007) Agreement allws fr the pssibility f designing ne glbal label with interchangeable labels fr natinal infrmatin. Cvers the placement f fur cmmn mandatry items; alchl cntent, cuntry f rigin, nminal vlume, & prduct name.
22 WWTG Labelling Agreement 2012 Shiraz Barssa Valley 2012 Barssa Valley Shiraz Alc 13.5% vl WINE OF AUSTRALIA 750mL alc 13.5% vl WINE OF AUSTRALIA GOVERNMENT WARNING: (1) Accrding t the Surgen General, wmen shuld nt drink alchlic beverages during pregnancy because f the risk f birth defects. (2) Cnsumptin f alchlic beverages impairs yur ability t drive a car r perate machinery, and may cause health prblems. CONTAINS SULFITES IMPORTED BY TRAIL BLAZERS NY, NY 750 ml PRODUCED BY BEYOND WINES, 23 WAITE ROAD, ADELAIDE, SA L123 Glbal Label Cuntry Specific Label
23 EU Australia Wine Agreement First Agreement entry int frce 1994 Secnd Agreement entry int frce 2010 Prtects Eurpean Gegraphical Indicatins and Traditinal Expressins Prtects Australian Gegraphical Indicatins and Quality Wine Terms Mre flexible alchl tlerance and labelling prvisins 16 additinal winemaking practices authrised including ak chips, spinning cne, reverse smsis, cunter current extractin A brader standstill clause extending t labelling and cmpsitinal issues Revised prcedure fr authrisatin f new enlgical practices r cmpsitinal limits, and the intrductin f an arbitratin prcess t reslve disputes A simplified varietal blending rule
24 Trade Initiatives Participatin in internatinal frums: FIVS OIV WTO APEC - Regulatrs Frum
25 Current Trade Issues Vietnam Decree 40: Tax stamps t be applied in cuntry f prductin 1 July 2013 Decree 38: Fd safety law. Cmplex dcumentatin and testing requirements fr cnfrmity assessment Circular 45: Natinal Technical Regulatins (misinterpretatin f standards and applicability t wine) Ntice 197: Restrictin f prts fr imprting wine Japan Submissin f dssiers t Ministry f Health Labr and Welfare fr apprval f additives (cpper sulphate)
26 Current Trade Issues China Decree 55: AQSIQ registratin Octber Manganese levels in wine (misinterpretatin f GB ) Sugar levels in wine (interpretatin f GB ) Submissin f technical dssiers via OIV t Ministry f Health fr apprval f additives and MRLs Cuntervailing duties Unpredictable
27 Current Trade Issues Brazil Wine must nt exceed 14% alchl. Sparkling wine cannt exceed 13% alchl withut gvernment endrsement 0.2 g/l limit n chlrides and 1.2g/l n sulphates N malvidin diglucside can be present in imprted wine Cmplex analytical requirement fr wine imprts Restrictive multi-varieties rules
28 Current Trade Issues EU Allergens labelling 1 July 2012 fr wines frm 2012 Canada vintage labelled after entry date. Ptentially 15 languages required + ptinal lg: cntains sulphites, milk and egg Organic Wine standard Allergens labelling 4 August 2012 fr vintage dated wines. Required in French and English: cntains: sulfites, milk, egg and fish cntient: sulfites, lait, euf et pissn Filtered wines with n detectable residues exempt. Elisa-based methds with detectin limits f 1-5ppm sufficient.
29 Cunterfeiting Takes many frms: Parallel exprting Prir trademark registratin - squatting Passing ff by cpying certain brand elements Freign wine presented as Australian either using pprtunistic brand, r registered mark
30 Infringement?
31 The Benflds Matter
32 Hw t Respnd? Brand wner respnsible t prtect brand by registering trademark in exprt market The Australian Gvernment and Wine Australia have n jurisdictin r pwer t deal with private intellectual prperty disputes Hw t Prtect Trademarks in China psted at
33 Exprt Market Guides Market Snapsht Duties and Taxes Wine Standards Labelling Requirements Imprt Certificates Imprt Prcedures Internatinal Agreements
34
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