Although the 20% tariff has been temporarily reduced to 10% for, 90 days from the 9th of April there is deep concern from the European drinks sector on what will happen, come the Summer. On the 8th of May the European Commission
launched its public consultation on US imports. It has been voiced that the 'wine for wine' principle was signed with the US as an agreement not to include wine in any trade dispute.
The spat originated in March when the EU proposed a 50% tariff on Bourbon in retaliation to tariffs on steel and aluminium. It was removed after warnings that wine and spirits would be subject to a 200% tariff if it was enforced. European wine exports to the US are worth nearly €5 billion annually. Italy accounts for around €2billion of this. 1.1% of GDP. There is a massive imbalance with American wine into the EU totalling just € 318 million. Whatever the outcome the loser will be the consumer from both sides.
Wine production is among the heaviest users of pesticides in European agriculture. It is reported that there is widespread contamination from trifluoroacetic acid (TFA), A persistent byproduct of PFAS compounds (more on PFAS in later blogs) . PFAS are known as 'forever chemicals'. They are man made, widely used due to their ability to repel water, heat, grease and stains and degrade very slowly. None of the wines produced in 10 EU countries spanning the last few years came back clean, after tests. Some bottles were found to be 100 times higher than what is typically measured in drinking water. Researchers found that TFA was not detected in wine harvested prior to 1988.
Familia Torres, a much heralded Spanish winemaker, established since 1870 has stated that it may have to leave its vineyards in 30 years time due to climate change. Traditional wine growing areas will be too dry and hot. The company with vineyards in Catalonia and California is planting vines on higher ground with the emphasis on irrigation. The group invests 11% of its profits every year to combatting and adapting to climate change.
There is optimism that the recent UK-EU reset will be good news for the wine drinkers in the UK. It's early days with the key being the detail, however easier movement with less bureaucracy can only be to the benefit of producers and consumers.
'Alcohol free', '0.0%' and 'alcohol light' are the new standardised denominations proposed by the European Commission for no and low-alcohol (NoLo) wine products in a bid to enhance their appeal.
Dubbed the 'sunset cocktail' Aperol Spritz has seen global sales quintuple since 2015. In Venito Italy, its home country, nearly 300,000 Spritzes are consumed in a single day alone. It appears Naples is the cheapest European city to enjoy this popular drink, with the average price coming in at €2.00. This compares with Madrid where your favourite summer tipple costs an average of a whopping €16.66. You can expect to pay €7.00 - €8.00 in many of the EU's cities. Aperol was created by the Barbieri brothers in Padua, Italy in 1919. The Spritz recipe was officially created in the 1950's, gaining its reputation as a light, refreshing aperitif. The drink is now a global sensation known for its refreshing taste, vibrant colour and ability to be consumed any time of day. It typifies the requirement for zero tariffs on global drink brands so they can be enjoyed at the lowest price by consumers subject to individual sellers markups.
