Voluntary Report - public distribution

**Date:** 3/7/2006

**GAIN Report Number:** E36040

E36040

**EU-25**

**FAIRS Product Specific**

**EU Proposal: Definition & Labeling of Spirit Drinks**

**2006**

**Approved by:**

![](media/image1.wmf)Norval E. Francis, Jr.

U.S. Mission to the EU

**Prepared by:**

Hilde Brans

**Report Highlights:**

The European Commission has proposed a new regulation covering the
definition, description, presentation and labeling of spirit drinks. The
proposal introduces the classification of spirit drinks into three
categories each with specific rules on production, adapts the existing
regulations to new technical requirements and outlines rules on
geographical indications.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Brussels USEU \[BE2\]

\[E3\]

**EU Proposal: Definition & Labeling of Spirit Drinks**

**Intro**

The European Commission has proposed a new regulation covering the
definition, description, presentation, and labeling of spirit drinks.
The new rules would combine the two spirit drinks regulations that have
been in force since 1989 into one regulation. The proposal introduces
the classification of spirit drinks in three product categories
(spirits, specific spirit drinks and other spirit drinks) each with
specific rules on production; adapts the existing regulations to new
technical requirements; and outlines rules on geographical indications
to comply with WTO requirements. The regulation would also apply to
spirit drinks produced in third countries.

The European spirit drinks sector is reacting cautiously to the
proposal. The sector welcomes the updated rules on production but
wonders why the Commission is introducing this new classification
system. The sector is concerned that this system could lead to confusion
and false assumptions that one product is purer than another.

This proposal only covers spirit drinks. Wine labeling requirements are
set out by the "Protocol on Wine Labeling" annexed to the EU-US Wine
Agreement (more info on <http://useu.usmission.gov/wine.html>).

**Product Categories**

A.  "Spirits": An exclusive group of spirit drinks which include only
    the purest form of product not containing ethyl alcohol of
    agricultural origin and admitting natural flavoring only, e.g. rum,
    whisky, brandy. (Category A in Annex II)

B.  "Specific spirit drinks": A distinct group of spirit drinks which
    may contain ethyl alcohol of agricultural origin and
    nature-identical flavoring, although only in a well defined and
    limited form, e.g. gin, vodka, liqueur. (Category B in Annex II)

C.  "Other spirit drinks": An open group of products which may contain
    ethyl alcohol of agricultural origin as well as flavoring,
    sweeteners and others. (Category C in Annex II)

**Labeling**

Spirit drinks meeting the specifications defined in Category A and B
must be labeled with the sales name assigned to those products. Products
meeting the definition of more than one specific type of spirit drink
may be sold under one or more of the names listed in Annex II. Spirit
drinks not meeting the specifications defined in Category A or B must be
labeled "spirit drink". This sales denomination may not be complemented,
supplemented or altered.

Sales denominations may be supplemented or replaced by a geographical
indication listed in Annex III, provided that this does not mislead the
consumer. Associating words or phrases such as "like", "type", "style",
"made", "flavor" or any other similar indications with any of the sales
denominations and/or geographical indications is not allowed on the
labels of alcoholic drinks. Trade marks, brand names or fancy names may
not replace the sales denomination of a spirit drink.

Mixtures - The sales denomination "spirit drink" must be shown clearly
and visibly in a prominent position on the label of products resulting
from mixtures of spirit drinks listed in Category A with one or more
spirit drinks, and/or one or more distillates of agricultural origin,
and/or ethyl alcohol of agricultural origin, unless such mixtures meet
one of the definitions laid down in Category A or B. Reference to one of
the terms in Category A or B may only be made in the list of alcoholic
ingredients, preceded by the words "mixed spirit drink" and not as part
of the sales denomination. The proportion of each alcoholic ingredient
must be expressed in "% vol" in descending order of quantities used.

The term "blend" may only be used on the label of products that have
undergone blending. If a maturation period or age is specified, it must
refer to the youngest alcoholic component.

Language -- for products originating in third countries, the use of the
third country's official language will be authorized if the particulars
provided for in the new regulation are also given in an official EU
language in such a way that the final consumer can easily understand
each item.

**Geographical Indications & Trademarks**

Council Regulation 2081/92 on the protection of geographical indications
does not apply to spirit drinks. Chapter III of the proposal introduces
and outlines rules for the protection and registration of geographical
indications on spirit drinks. Names that have become generic may not be
registered in Annex III. Geographical indications listed in Annex III
may not become generic.

The proposal also includes rules on the eligibility and validity of
trademarks that are similar to or identical with a geographical
indication protected by the new regulation. The regulation will not
prejudice the eligibility for registration of trademarks that were
applied for in "good faith" or the validity of trademarks registered in
"good faith" and the right to use trademarks that were either acquired
before January 1, 1996, or before the protection of the geographical
indication in the country of origin.

In 1994, the EU agreed to restrict the use of the product designation
"Tennessee whisky/Tennessee whiskey", "Bourbon whisky/Bourbon whiskey"
and "Bourbon" as a designation for Bourbon whisky to distilled
spirits/spirit drinks products of the USA produced in compliance with
the laws and regulations of the USA (27 CFR 5.22 or an equivalent
successor regulation). The agreement was published in Official Journal L
157 of 6/24/94.

**Next steps**

The definition of vodka could be a major obstacle in adopting the
proposal. A previous proposal (April 2005) was blocked because it did
not change the existing definition that vodka can be made from any
agricultural raw material to a product that can only be made from
potatoes and cereals. The new proposal adds a paragraph on vodka
stipulating that the raw materials used for the production of the ethyl
alcohol must be listed on the label. At the February 2006 Agriculture
Council, seven member states (Poland, Lithuania, Latvia, Finland,
Estonia, Denmark and Sweden) presented a joint declaration to the
Council and the Commission, that vodka should only be made from potatoes
and cereals. The U.K., Netherlands and Ireland support the current
definition insisting that a restriction to only two products would
prevent innovation and could lead to trade disputes.

Council Regulation 1576/89 is currently regulating the labeling of
spirit drinks. This proposal would be adopted under the co-decision
procedure which means that two readings from both the Council and the
European Parliament are required. Final adoption is expected in the
second half of 2007.

**Ingredient Labeling**

This proposal, drafted by DG Agri[^1], does not cover ingredient
labeling. In the context of a broad review of the EU food labeling
legislation, DG Sanco[^2] may propose mandatory ingredient listings on
the labels of alcoholic beverages. The EU's new rules on allergen
labeling (in force since Nov. 25, 2005) require the compulsory listing
of certain potentially allergenic ingredients. Spirit drinks were
granted a temporary exemption from this requirement based on a favorable
opinion from the European Food Safety Agency. This exemption will apply
until November 2007, by which time the Commission is required to issue a
definitive decision. For details [see GAIN report E35060 "Allergen
Labeling -- Temporary
Exemptions".](http://www.fas.usda.gov/gainfiles/200503/146119215.pdf)

**Links**

\- EU proposal for a regulation of the European Parliament and of the
Council on the definition, description, presentation and labeling of
spirit drinks:
<http://register.consilium.eu.int/pdf/en/05/st15/st15902.en05.pdf>.

\- Agreement in the form of an exchange of letters between the EU and
the U.S. on the mutual recognition of certain distilled spirits/spirit
drinks:
<http://europa.eu.int/eur-lex/lex/LexUriServ/LexUriServ.do?uri=CELEX:21994A0624(01):EN:HTML>.

\- Co-decision procedure:
<http://europa.eu.int/comm/codecision/stepbystep/diagram_en.htm>.

**Visit our website:** our website
**[http://useu.usmission.gov/agri/]{.underline}** provides a broad range
of useful information on EU import rules and food laws and allows easy
access to USEU reports, trade information and other practical
information. More information on labeling can be found at
[http://useu.usmission.gov/agri/label.html](http://www.useu.be/agri/label.html).
E-mail: AgUSEUBrussels@usda.gov

**Related reports from USEU Brussels:**

  ------------------------------------------------------------ ----------------------- -----------------------
  **Report Number**                                            **Title**               **Date Released**

  E35196                                                       Allergen Labeling --    10/6/2005
                                                               Implementation Nov.     
                                                               2005                    

  E35060                                                       Allergen Labeling --    3/23/2005
                                                               Temporary Exemptions    

  E35162                                                       Food & Agricultural     8/17/2005
                                                               Import Regulations and  
                                                               Standards (FAIRS)       

  These reports can be accessed through our website                                    
  [useu.usmission.gov/agri](http://www.useu.be/agri) or                                
  through the FAS website                                                              
  <http://www.fas.usda.gov/scriptsw/attacherep/default.asp>.                           
  ------------------------------------------------------------ ----------------------- -----------------------

[^1]: DG Agricultural & Rural Development

[^2]: DG Health & Consumers Protection