Irish consumers could be facing higher prices for wine, as a result of a new proposal in the country's Public Health (Alcohol) Bill, according to the Irish Wine Association (IWA).
The bill is proposing the introduction of mandatory cancer warning labels on all alcohol products sold in the Republic of Ireland, meaning that companies would have to produce a specific label for the Irish market.
The IWA says that this measure would be 'logistical nightmare' for wine importers, and have a 'devastating effect' on Ireland's wine industry, leading to less choice for consumers and an increase in business costs, which could create higher prices.
"Today, Irish consumers are more sophisticated when it comes to food and today they are blessed with an array of some of the world’s finest wines, which is ideal for food pairing," said Jim Bradley, chair of the IWA and of wine distributor Febvre & Company.
"Unfortunately, this bill poses a threat to the variety currently on offer to Ireland’s wine drinkers."
Trade Barrier
The IWA says that the Alcohol Bill could be interpreted as a 'barrier to the free movement of goods' within the EU, putting Ireland at odds with ten EU member states, most of which are wine-producing nations.
As the country is a relatively small market, the organisation adds that Ireland may become an unviable market for exports.
The bill is also proposing a minimum until price on wine, which will drive up costs across all price categories. The IWA notes that Ireland already has the highest rate of excise on wine in the EU, and the most expensive alcohol.
Ignacio Sanchez Recarte, secretary general of Comité Européen des Entreprises Vins - the association representing European wine companies - said that there are "genuine concerns" about the bill across Europe.
“The Public Health Alcohol Bill has alarmed other EU member states, ten of whom have submitted formal complaints to the European Commission," he said. "Only one other piece of national legislation has received more complaints in recent years."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
