Australian Wine & Brandy Corporation

Australian Wine & Brandy Corporation Australia s Wine Regulatory Framework MW Steve Students- Guy & Jessica November Pater 2009 Steve Guy Fosters (General Melbourne Manager-Compliance Wine Show and Trade) August 2005 Understanding Compliance Requirements 1

Regulatory Framework Controls on production-food Standards Code Controls on description and presentation-awbc Act and Regulations Enforcement Label Integrity Jessica Program Pater Export Controls 2

Geographical diversity! 3

Food Standards Code (www.foodstandards.gov.au) Food Composition Food Labelling Additives Contaminants Food Hygiene Production Standards 4

Australian Wine Production Standard 4.5.1 Additives allowed in Australian wine Additive Ascorbic acid Carbon dioxide Citric acid Dimethyl dicarbonate Erythorbic acid Grape juice including concentrated grape juice Grape skin extract Gum Arabic Lactic acid Malic acid Metatartaric acid Mistelle Potassium sorbate Potassium sulphites Sorbic acid Sulphur dioxide Tannins Tartaric acid Yeast mannoprotein 5

Standard 4.5.1 Processing aids allowed in Australian wine Processing aid Activated carbon Agar Alginates, calcium and potassium salts Ammonium phosphates Argon Bentonite Calcium carbonate Calcium tartrate Carbon dioxide Cellulose l Collagen Copper sulphate Cultures of micro-organisms Cupric citrate Diatomaceous earth Dimethylpolysiloxane Egg White Enzymes Gelatine Australian Wine Production Hydrogen peroxide Ion exchange resins Isinglass Lysozyme Milk and milk products Nitrogen Oak Oxygen Perlite Phytates Plant proteins permitted as processing aids under clause 3(a) to Standard 1.3.3 Polyvinyl polypyrrolidone Potassium carbonate Potassium ferrocyanide Potassium hydrogen carbonate Potassium hydrogen tartrate Silicon dioxide Thiamin chloride* Thiamin hydrochloride* 6

Composition limits Australian Wine Production (a) Sulphur Dioxide:250 mg/l if wine contains less than 35 g/l of sugars, (otherwise 300 mg/l) (b) Sorbic acid: 200 mg/l (c) polyvinyl polypyrrolidone: 100 mg/l (d) (1 g/l of soluble chlorides expressed as sodium chloride (e) 2 g/l of soluble sulphates expressed as potassium sulphate (f) 400 mg/l of soluble phosphates expressed as phosphorus (g) 1.5 g/l of volatile acidity expressed as acetic acid (h) 0.1 mg/l of cyanides and complex cyanides expressed as hydrocyanic acid) 7

Wine Labels Australia Beyond Boundaries Beyond Boundaries 2005 McLaren Vale Shiraz WINE OF AUSTRALIA Product Designation 2005 McLaren Vale Shiraz 750mL 14% ALC/VOL. CONTAINS SULPHITES PRODUCED WITH MILK PRODUCTS PRODUCED BY BEYOND WINES, 23 THE ROAD, ADELAIDE, SA L2005 Allergens/Standard Drinks L123 Nominal Volume Alcohol Statement Country of Origin Name and Address 8

The Blending Rules Any claim must be listed in descending order of its proportion in the wine Vintage Variety GI Single 85% 85% 85% Up to 3 85% min 20% each variety 95% min 5% each GI Up to 5 95% min 5% N/A each variety N/A (3 GI maximum allowed to be claimed on labels) 9

Blending Rules Foreign Wine What is the minimum amount of foreign wine that needs to be declared? Beyond Boundaries The name and proportion of the blend produced in each country must be displayed in descending order. 2005 McLaren Vale Shiraz Wine of Australia (99%) USA (1%) 10

Variety Rule How would you describe a wine that is; Beyond Boundaries 70% Shiraz 16% Cabernet 14% Merlot Up to 5 varieties Total = 95% with min 5% of each variety 2005 McLaren Vale Shiraz Shiraz Cabernet Shiraz Merlot Wine of Australia 11

Variety Rule How would you describe a wine that is; Beyond Boundaries 90% Shiraz 5% Viognier Single variety 2005 McLaren Vale Shiraz Shiraz Viognier Total = 85%, or Wine of Australia Up to 5 varieties Total = 95% with min 5% of each variety 12

New Blending Rule 2010 At least 85% of the wine shall be obtained from the labelled varieties, provided the labelled varieties are in greater proportion in the composition of the wine than any unlabelled ll variety. 70% Shiraz Beyond Boundaries 16% Cabernet 14% Merlot 2008 Shiraz Shiraz Cabernet Merlot Wine of Australia 13

GI Rule How would you describe a wine that is; Beyond Boundaries 75% Barossa 15% McLaren Vale 5% Riverland Up to 3 GI s Total = 95% with min 5% of each variety 2005 Barossa Barossa - McLaren Barossa - McLaren Vale -Vale Riverland Shiraz Wine of Australia 14

GI Rule How would you describe a wine that is; Beyond Boundaries 75% Barossa 15% McLaren Vale 5% Riverland Hierarchy: States/Zones Regions Sub Regions 2005 South South Eastern Adelaide Australia Australia Shiraz Wine of Australia 15

Australian Wine & Brandy Corp. Act 1980 Part VIA Label Integrity Program The object of the label integrity program is to help to ensure the truth, and the reputation for truthfulness, of statements made on wine labels, or made for commercial purposes in other ways, about Australian the vintage, Wine variety & Brandy or geographical Corporationindication of wine manufactured in Australia. 16

2009 Amendments who must make records? The Label Integrity Program applies to: Wine grape growers Manufacturers of wine goods Persons Australian who supply Wine & or Brandy receive Corporation wine goods (including a person who sells the wine goods by wholesale or retail or export) 17

2009 Amendments what records must be made? One step back The date the wine goods are received The type, quantity, vintage, variety and GI of the wine goods received The Australian identity of the Wine supplier & Brandy Corporation Record must be made within 3 days and retained 7 years. 18

2009 Amendments what records must be made? One step forward The date the wine goods are supplied The type, quantity, vintage, variety and GI of the wine goods supplied The Australian identity of the Wine customer & Brandy Corporation Record must be made within 3 days and retained 7 years. 19

Wine Manufacturer s Obligations Throughout the winemaking process records are required to show; (a) the Vintage of the wine or extract (b) the Variety of the wine or extract (c) the Geographical Indication of the wine or extract. Also, the records must show details of every step the wine manufacturer took in manufacturing the wine or extract including anything that changed or affected; (a) the Vintage of the wine or extract (b) the Variety of the wine or extract (c) Australian the Geographical Wine Indication & of Brandy the wine or Corporation extract (d) the tank or other place or thing in which the wine or extract is stored (e) the volume of the wine or extract stored in any such tank, place or thing. The details must be in a form that t allows an audit trail containing i the history of the wine s manufacture to be readily traced from the record. 20

Exceptions to Record Keeping Requirement Grape growers only need to record one step forward Direct sales. The requirement is to record total sales during a period of no more than 12 months (including vintage, variety and GI) 21

LIP Record Keeping Wine Goods Intake Docket Mandatory features: (highlighted) Date Vintage Variety Geographical Indication Amount / Quantity / Volume Identity of supplier Optional Information: Docket number (recommended for traceability) Chemical analysis including ph, TA, SO 2, MOG & Baume etc. 22

LIP Record Keeping Worked Example DATE VARIETY REGION / GI AMOUNT GROWER DETAILS INTAKE DOCKET # FROM VESSEL TO VESSEL WINE CODE DATE OPERATION VESSEL START VOL END VOL VESSEL START VOL END VOL GAIN / LOSS FSO2 TSO2 Ph TA TEMP Be Other ADDITIONS / COMMENTS / NOTES Information is duplicated. Entered in both records to tie them together. This is the principle of Double Entry 23

LIP Record Keeping Blending Example NEW WINE CODE 08SEMCHA001 24

LIP Record Keeping Blending Example COMPONENT WINE CODES Links the blend to its origins All operations are duplicated from component wines. All component Wine Codes are recorded in notes section. At blending new LIP composition should be calculated and recorded. 25

Export Process Licence to Export Exporter sends application & relevant docs AWBC issues licence Renewal Product Approval Exporter sends product, labels & analysis AWBC checks blend vs label, analysis & evaluates AWBC sends approval Shipment Approval Exporter submits Shipping App EU. Exporter submits NATA VI1 Analysis AWBC checks & issues permit no. Exporter submits permit to ACS. EU. AWBC sends VI1 Certificate 26

Bulk Wine Procedures Consignee must be: Approved prior to export Accredited to (or working towards): BRC (British Retail Consortium) technical standard; or ISO 22000 standard; or HACCP & ISO 9000 standards; or International Food Standard (IFS); or A standard equivalent to the BRC. * Exemptions made where wine is: not identified as Australian (ISO 9000 or HACCP). used in a food product. used for sacramental purposes. 27

Bulk Wine Procedures Loading and Transportation Specifications - The loading and despatch process may be subject to auditing. - The scope of the requirements covers: - Wine Preparation - Container inspection and preparation - The loading process 28

Bulk Wine Procedures Bulk Returns Randomly requested from bulk shipments. 2 fully dressed samples are returned along with a declaration. Allow four months to return samples. Wine Australian is tasted and Wine label & checked. Brandy Corporation Consignee may be suspended if quality problems identified. 29

Penalties are strict in Australia. 30

Penalties Previously $15,000 for intentionally failing to keep a record or keeping a false or misleading record. Amended to 2 years imprisonment for failure to keep a record, keeping a false or misleading record, for making a label claim not supported by records or for failing Australian to provide Wine & a Brandy copy of Corporation the record when supplying wine goods. 31

Offence Provision Section 40C 1. A person must not, in trade or commerce, intentionally sell wine with a false description and presentation. 2. A person must not, in trade or commerce, intentionally export wine with a false description and presentation. 3. A person Australian must not, Wine trade & Brandy or commerce, Corporation intentionally import wine with a false description and presentation. Penalty: Imprisonment Jessica for 2 Pater years. 32

2008 Agreement Following names can be used on Australian wines produced for 12 months after the agreement comes into force (estimated to be mid 2010): Burgundy, Chablis, Champagne, Graves, Manzanilla, Marsala, Moselle, Port, Sauterne, Sherry, White Burgundy. Hermitage (as a synonym for Shiraz), Lambrusco (as a wine style), Amontillado, Auslese, Claret, Fino, Oloroso and Spaetlese. After expiry of 12 month period no more wine can be produced with these names on the label, but existing stock can be sold by wineries, to retailers, for a further 3 years (5 years for Port and Sherry). Stock that is in retail outlets can be sold until it is exhausted. Phase out period for Tokay is 10 years. 33

Trade Aim: To enhance access to international markets for Australian wine. Obstacles are invariably technical; labelling, certification, wine composition, winemaking techniques and, particularly in Asia, tariff barriers. World Wine Trade Group Agreement on Oenological Practices Agreement on Labelling Free Trade Australian Agreements Wine & Brandy Corporation Submissions on India- Australia, Korea- Australia and China-Australia FTA s EU Australia Wine Agreement FIVS / OIV / WTO 34

WWTG Labelling Agreement Beyond Boundaries 2005 Chardonnay Barossa WINE OF AUSTRALIA alc 13.5% vol 750 ml GOVERNMENT WARNING: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects. (2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems. CONTAINS SULFITES IMPORTED BY TRAIL BLAZERS NY PRODUCED BY BEYOND WINES, 23 L123 WAITE ROAD, ADELAIDE, SA 2005 Barossa Chardonnay Alc 13.5% vol WINE OF AUSTRALIA 750mL Global Label Country Specific Label 35

Global Labels (Post-EU Agreement) Beyond Boundaries Beyond dboundaries 2005 Chardonnay Barossa alc 13.5% vol WINE OF AUSTRALIA 750 ml CONTAINS SULPHITES 2005 Barossa Chardonnay CONTAINS MILK PRODUCTS PRODUCED BY BEYOND WINES, 23 THE ROAD, ADELAIDE, SA L2005 IMPORTED BY BEYOND WINES, UK BT703HD L123 EU & Australia Label 36

Wine Australia logo as a trust-mark of quality; innovation and assurance to our global audience 37