Wine and Spirit Regulation
A complex body of technical regulation, most of it EU law, governs all aspects of the wine and spirit trade: from labelling, production practices and record keeping. As well as advising members about compliance with regulations, the WSTA works extensively with policy makers at international and national levels to help ensure that new regulation and the enforcement of existing regulation, is necessary and proportionate. Regulation represents one of the biggest barriers to growth a business can face.
Promoting better regulation principles
The WSTA promotes principles of better regulation and wants to see these principles adhered to at an EU and national level. Regulation should only be imposed when necessary, when the benefits have been demonstrated to outweigh the burden on businesses. We work to identify and influence potential regulatory risks at all stages of the legislative process, engaging with decision makers including the EU Commission, other Member States and officials across UK Government, including DEFRA and the Food Standards Agency.
The WSTA maximises its influence at an international level through active participation in leading trade associations such as Comité Européen des Entreprises Vins (CEEV) the representative body of the European wine industry, the European Spirit Organisation (CEPS), the International Organisation of Vine and Wine (OIV) and FIVS, the worldwide federation representing the wine, beer and spirit sectors.
Labelling Requirements
Legislation relating to product labelling represents a key area of WSTA regulatory activity, particularly at an EU level. Changes to product labelling can incur significant costs to businesses and create considerable complexity in the supply chain if different requirements are imposed in several marketplaces.
- General Food Labelling Regulations. The WSTA has been working to minimise the impact of the new proposed regulations to replace the current Food Labelling Directive. This is likely to exempt all beers, wines and spirits from the need to list ingredients and calories for five years. The WSTA is also seeking to ensure that new provisions on origin labelling will not negatively impact on aromatised wines and other products.
- Allergen labelling derogation. Following successful advocacy by CEEV and the WSTA, the European Commission has now confirmed that the derogation from the need to label for allergens in wine-making processes has been extended until 30 June 2012. Wine producers do not need to label for the presence of either eggs or milk agents until this time and subject to the outcome of research, the sector hopes for a permanent derogation.
- Compound terms in spirit products. Through CEPS, the WSTA is pushing for EU clarifying legislation to resolve an ongoing issue in relation to the use of compound terms in the labelling of spirit products. This is where a spirit is combined with another drink to make a finished product, such as ‘gin and tonic’ or ‘rum and coke’. Recently introduced EU Spirit Regulations restricted the use of compound terms to describe a product in which a spirit has been diluted below the required minimum alcoholic strength. Whilst spirit drinks below 15% abv were never intended to be caught by the legislation, authorities in different EU states are taking different decisions regarding the legality of these products, creating a very uncertain market for producers of these products.
Challenging hurdles to innovation
The WSTA works to raise awareness of – and ultimately change- regulation that acts to stifle innovation and business growth. An example of this is in the area of lower alcohol alternatives, where there are considerable barriers to making these products legally permissible and commercially viable. In 2008, the WSTA successfully worked with DEFRA to overturn EU restrictions on the sale within the Europe of reduced alcohol wines made using specialist techniques.
However producers are still restricted from reducing the alcohol content of the wine by any more than 2%. Similarly, EU regulations governing nutrition and health claims introduced in 2007 stipulate that health claims must not be made on alcoholic beverages containing more than 1.2% abv. As the terms ‘lower alcohol’ and ‘reduced alcohol’ are not officially defined, these could be considered health claims which are not permitted. The WSTA continues to highlight the impact of these regulations on the growth of lower alcohol products.
Guidance for WSTA members
The WSTA produces an extensive guide to the EU and UK regulatory framework that applies to wines and spirits. The publication, ‘Checklists: a comprehensive guide to UK and EU regulations for Wines and Spirits’ is free for WSTA Members and can be found in the members area.
