ABFI Annual Review 2009

Transcription

2OO9
Annual Review
The ABFI mission
Contents
Chairman’s statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Director’s statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Section 1 – Pan-industry issues . . . . . . . . . . . . . . . . . 6
Trading environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Fiscal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Environment & regulatory affairs . . . . . . . . . . . . . . . . . . . . . . 10
Labelling committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
With a membership that includes all sectors
of the drinks industry in Ireland, ABFI is
committed to promoting the many positive
contributions our industry makes to the Irish
Exchequer, balance of trade, employment and
society as a whole .
Working with member companies, we aim to
develop evidence-based policy proposals that
address the numerous issues affecting our
industry . We communicate these proposals
to legislators, the media and the public in an
effort to create a more sustainable business
environment for our members .
Responsible marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
International partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Section 2 – ABFI category associations . . . . . . . . . 17
Irish Brewers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Irish Cider Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Irish Spirits Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Irish Wine Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
ABFI members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Coupled with our commercial concerns, we
are conscious of our social responsibility
to encourage the moderate consumption
of our products amongst adults, working
in partnership with Government and other
stakeholders .
The recession has provided challenges for all sectors of the
Irish economy . The drinks industry further had to compete with
dramatic declines in sales and consumption, exacerbated by a
major increase in cross-border purchasing of alcohol caused
by the lower UK taxation regime and the Euro/Sterling price
differential .
This resulted in the harshest possible trading environment in
recent times for the drinks industry in Ireland .
In this regard, I wholeheartedly welcome the manner in which
our industry was, once again, able to come together and work in
unison across all four categories – beer, wine, spirits, and cider
– to make our case for government support . Without a body
such as ABFI to co-ordinate our activities and present a united
voice, it is doubtful that we could have conveyed our messages
so strongly and be heard at the highest levels .
The Irish drinks industry continues to be one of the most
important contributors to the Irish economy: whether it be
through the jobs we provide, the tourist facilities we support
or the international recognition we bring through our worldfamous brands . Our exports continue to perform strongly and
will be one of the foundations on which recovery will be based .
As a major industry that supports 85,000 jobs and provides
billions of Euros in much-needed revenue to the State, we
recognise that we have a responsibility to ensure that our
products are marketed and sold in a responsible manner . We are
proud that in the midst of this difficult business climate we have
www.abfi.ie
Brian Duffy
Chairperson, Alcohol Beverage Federation of Ireland and
Guinness Global Brand Director, Diageo Ireland
continued to maintain all of the commitments we developed in
regard to responsible sales and marketing codes .
The industry must continue to work together in this manner
to ensure we confront any new challenges that will arise . ABFI
contributes enormously to addressing that challenge on a
daily, monthly and annual basis . While there are undoubtedly
tough times ahead, we can be confident that we have the right
strategy and structures in place to work through them .
Brian Duffy
Chairperson, Alcohol Beverage Federation of Ireland
Alcohol Beverage Federation of Ireland, Annual Review 2009 | page 3
Chairman’s statement
Alcohol Beverage Federation of Ireland, Annual Review 2009 page| 4
Rosemary Garth
Director, Alcohol Beverage Federation of
Ireland
Director’s statement
From early 2009, it was clear that the economic
downturn was having a major impact on consumer
trends and the alcohol market . The drinks industry
endured two budgets, declining sales and revenues and
a major increase in cross-border trade and purchasing
of alcohol .
The structures, supports and services that a panindustry representative organisation such as ABFI
provides for member companies became more
important than ever . Through partnership, the industry
was able to present a united, coherent, and evidencebased argument calling for government support .
Through structured co-ordination and co-operation between
members, ABFI articulated the plight of our industry to
government, the public and stakeholders in an effective
manner . We also participated in a series of briefings with
senior government members, Department of Finance officials
and advisers, as well as leaders of the Opposition parties .
These efforts led to the Government’s decision not to increase
taxation on alcohol, with the drinks industry’s messages
actively referenced by the Minister in his supplementary
budget speech .
As the year developed, it was clear that the trends established
earlier on were continuing . ABFI sought additional support for
our industry message about the significant loss of revenue to
the State from cross-border shopping through other retail and
business organisations .
Other activities included our participation in the Government’s
Working Group on Sports Sponsorship, where we worked with
sporting bodies to highlight the importance of sponsorship
by the drinks industry and the measures we adopt to ensure
sponsorship is carried out responsibly . We also played an
active role at European level, co-operating with partner
organisations in the EU .
Our annual review is a record of the activities we have
undertaken on behalf of our members over the last 12 months .
It demonstrates the extent of our efforts and the various ways
in which we are working to ensure ABFI is an effective panindustry voice .
Our challenge is to ensure that our industry continues to be
appreciated, respected, and supported . Whatever challenges
emerge in 2010, ABFI is well placed to confront them on behalf
of our members .
Through collaboration and information-sharing, we were able
to point out that the State was haemorrhaging vital revenue
because of cross-border shopping .
An intense lobbying period in the autumn resulted in a muchwelcome and courageous excise reduction of 20% in Budget
2010, which provided a measure of relief to consumers and the
wider drinks industry .
At the same time, ABFI has continued to work on our
commitments to promote responsible marketing of alcohol
in Ireland . In June, we publicly launched our “Alcohol
Communications Codes Training” programme in Dublin, where
the Minister for Health Promotion, Aine Brady TD, spoke in
support of our efforts .
www.abfi.ie
Rosemary Garth
Director, Alcohol Beverage Federation of Ireland
In April, ABFI used the supplementary budget to emphasise
these negative trends . We played a proactive role in the wider
industry pre-budget communications campaign .
Section 1 - Pan-industry issues
www.abfi.ie
Trading environment
Commission on Taxation
Declining alcohol market
Having made a submission to the Government’s Commission
on Taxation in 2008, ABFI awaited with interest for the group’s
report which was published in early September 2009 .
2009 was one of the worst years in the history of the Irish
drinks industry as data showed sales down around 9% . This
came after a 6% decline in alcohol consumption in 2008 and
meant per capita consumption of alcohol was at 1996 levels .
No category was spared, with beer down 6 .5%, cider down
6%, wine sales down 7% and spirits down a devastating 18 .5% .
The severe pressure on the industry was highlighted to the
Government and the media in the run up to the Budget . Never
before had it been so important that all possible efforts were
made to help our vital national manufacturing and export
sector .
www.abfi.ie
We were satisfied to read the Commission’s view that “the
policy approach to determining the level of excise duty
applicable to alcohol…products should take account of factors
such as health outcome, public order issues, cross-border
trade and other societal issues .”
This indicates that the report was influenced by ABFI and
other stakeholder submissions regarding Ireland’s high rates
of alcohol excise and the subsequent impact on cross-border
trade and tourism .
The actions of the Minister for Finance in his December
Budget, which reduced excise duty on alcohol by 20%, gave
further credence to this view .
2009 was one of the worst years in the history of the Irish
drinks industry . No category was spared, with beer down
6 .5%, cider down 6%, wine sales down 7% and spirits
down a devastating 18 .5% .
Budget 2010
In 2009, with the public finances in serious difficulty, there
was increasing pressure on the Minister for Finance to
increase excise duty on alcohol . ABFI prepared a detailed
case against such a move and argued that far from increasing
excise, steps should be taken to cut the already high levels of
tax on alcohol .
The central argument we made was that high taxes led to
increased cross-border shopping and a subsequent loss of
revenue to the State .
According to tns Worldpanel, Northern retailers had a
3 .5% share of the Republic’s grocery market, even though
they have no stores here . More than one in five southern
households travelled north to shop in August, September or
October . Those shoppers spent over twice as much on alcohol
on those trips than on domestic shopping trips .
Data from Neilsen Ireland showed that the Republic’s offlicence sector showed a 7% decline in the year to August
while the North’s off-trade rose a staggering 30% . We
estimated that 10% of the Republic’s off trade had gone
north . This represented about 5% of the total alcohol trade .
The reason for crossing the border was clear: cheaper
prices, driven mainly by lower alcohol costs . The Revenue
Commissioners figures showed that tax was one of the
main reason for this - between 30% and 100% of the price
difference was due to higher excise and VAT on a selection of
products including beer, vodka, whiskey and wine .
ABFI issued a number of press releases, highlighting the
difficult environment in which the drinks industry was
operating and called for the Government not to act in any way
that would make that situation worse . Specifically, we called
for a cut in excise by one fifth to boost consumer confidence .
We also engaged with stakeholders and liaised with other
bodies such as DIGI and Retail Ireland .
All four ABFI category associations issued press releases
highlighting their own particular importance to the Irish
economy, jobs and the exchequer .
ABFI’s work resulted in a 20% cut in excise duty on alcoholic
beverages and a reduction in the top rate of VAT from 21 .5%
to 21%, effective on January 1st 2010 .
ABFI’s work resulted in a 20% cut in excise duty on alcoholic
beverages
www.abfi.ie
Taxation policy committee
ABFI’s taxation policy committee continued its work in 2009 .
Previously an ad-hoc committee that drafted a submission to
the Commission on Taxation, a permanent membership was
established this year . Through this forum, members contributed
to the ABFI submission on the EU excise review as well as
monitoring other fiscal and economic issues .
EU excise review
In 2009, the European Commission announced that it would
publish a proposal reviewing the directives on tax structures
and minimum rates applied to alcoholic beverages . It engaged
an economic consultancy to conduct a study into the matter,
seeking the views of various stakeholders, including trade
associations like ABFI .
Directive 92/83 regulates the structure of tax for different
alcoholic beverages, such as the definition of categories which
are subject to excise duty and the basis on which the excise duty
is calculated .
Directive 92/84 defines the minimum level of excise duty rates
to be set by each EU Member State for the products defined in
Directive 92/83 .
The study collated the necessary information and examined
whether the current structures of alcohol taxation adequately
support the internal market or whether distortions exist, making
adaptations necessary .
ABFI provided the Commission with a detailed response to
the consultation . ABFI then turned its attention to further
involvement at European level to ensure the review process
resulted in an excise regime that benefited the industry and
consumers .
www.abfi.ie
Fiscal matters
Environment and regulatory affairs
Environment policy committee
ABFI’s environment policy group received continuous updates
on key environmental developments and regulations that
impacted on the alcohol beverage industry in 2009 . Through
this forum, the group contributed to the ABFI submission and
response to the Government’s International Waste Review,
which was a significant industry issue throughout the year .
Government’s international waste review
The Government’s International Waste Review final report was
submitted to the Department of the Environment, Heritage
& Local Government and provided recommendations on all
aspects of waste management in Ireland .
Deposits and refunds were a significant concern for the
alcohol and soft drinks industry as Minister Gormley signalled
that proposals on this system were to be fast tracked . In our
submission, ABFI said that such a system would be ineffective
in Ireland due to the presence of an exsisting producer
responsibility scheme, a lack of proper watse infastructure and
the cost involved .
The report suggested that producer responsibility should be
100% for all waste costs . However, the industry already makes
a significant financial contribution to fund recycling, and EU
recycling targets have been surpassed . ABFI does not support
further cost requirements for the industry as it would result in
a significant reduction in competitiveness .
The report contained a recommendation for levies on
disposable containers . This call was echoed by the Commission
on Taxation report . However, the Commission on Taxation
report acknowledged that environmental product taxes
may not always be the most appropriate answer to an
environmental problem . Regulation and/or voluntary initiatives
may be more suitable options . ABFI highlighted our concerns
to the Government, in particular the cost burden this places on
businesses and consumers in these difficult economic times .
All the above reccomendations will be considered when
making waste policy decisions in the future .
While the final report supports this view, it also suggests that
a further study may be carried out if industry does not achieve
higher recycling rates, which could result in the introduction of
a refund system .
The report also recommended that the minimum recycling
target be increased to 80% by 2013 . However recycling rates
are at 64%, which is 4% above our 2011 EU target . ABFI
argued that the national target should be measured in terms
of recovery rates rather than recycling rates . We also stated
effective and consistent enforcement by local authorities is
required to underpin success .
www.abfi.ie
ABFI does not support further cost requirements for the
industry as it would result in a devastating reduction in
competitiveness.
www.abfi.ie
page 12Beverage
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of Ireland, Annual
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Pan-industry
Labelling committee
Labelling continues to be one of the most difficult regulatory
areas for member companies . In 2009 ABFI’s pan-industry
labelling group was active in developing ABFI’s position on
health warning labels as well as feeding into the draft EU
Provision of Information to Consumers Regulation .
Health warning labels
In 2009, the Department of Health and Children launched a
public consultation on the introduction of mandatory health
advice/warning labels on alcohol containers and promotional
products . In 2007, ABFI agreed with the Government that
information on units and advice on drinking during pregnancy
should be introduced on all pre-packaged alcohol products
placed on the Irish market .
ABFI has repeatedly called on the Government to implement
this agreement and made a submission during the recent
public consultation on the issue . The Government has stated
that it will draft enabling legislation on labelling which will
allow them to introduce specific regulations on pregnancy and
units/grams .
Key areas highlighted in our submission were:
•
ABFI supports consumers right to be informed and
believes that the information provided should be
meaningful, helpful and relevant . Provisions allowing too
much information on prepackaged labels can result in
essential information becoming obscured and consumers
dismissing all information due to overload .
www.abfi.ie
ABFI believes general health warning labels are not
effective in providing consumers with relevant or helpful
information . However, as Irish society becomes more
aware of it’s health, useful information on the provision of
units would aid consumers in tracking their consumption
levels .
Throughout 2009, ABFI held regular meetings with the
Department of Health, Irish Permanent Representatives,
MEPs and all relevant parties to ensure our views were put
forward . Many Irish MEPs tabled pro-industry amendments to
the regulations as a result of the work undertaken by ABFI on
behalf of the industry .
•
We acknowledged that unit information is insufficient
for pregnant women who want to make informed
choices . Therefore, we accepted the Government’s wish
to introduce a pictogram/tag line that advises pregnant
women not to consume alcohol .
It is expected that discussions on this regulation will be
completed by the end of 2010 and an implementation time
frame for companies will be set to adopt the new regulations .
Once these label changes are agreed, it is important that a
Government-led, multi-pronged education/public awareness
campaign is put in place . In particular, members of the health
profession should provide such information to their patients .
ABFI called on the Government to conduct a baseline study
to monitor the effectiveness of the labels . We also asked that
consideration is given to co-ordinating the introduction of
warning labels with the proposed EU label changes .
Draft Provision of Information to Consumers
Regulation
Work progressed in 2009 on the EU-drafted Provision of
Information to Consumers Regulation, which will require all
food and drink products to have stricter labelling regimes
including mandatory ingredient content, country of origin and
nutritional labelling .
The EU Council Working Group on Health (Department of
Health Officials from the Member States) and EU Parliament
(MEPs from the Member States) are debating the content of
the draft regulation in Brussels . Both groups are continuing to
review the legislation and aim to reach an agreement on the
text in 2010 .
www.abfi.ie
Government working group on sports
sponsorship by the alcohol industry
The 2007 Programme for Government included a commitment
“to discuss the question of the sponsorship of sporting events
by the alcohol industry with the aim of phasing it out .”
The Government convened a working group on the matter in
2009 . The group included representatives of industry, sporting
bodies, relevant Government departments and the public
health lobby .
ABFI participated in the working group and made a robust
defence of the important economic, social and cultural role the
drinks industry plays in Irish life through sponsorship .
Our detailed submission to the group stated that the drinks
industry was proud of the responsible sponsorship activity in
which it engages, including its partnership with sporting and
cultural organisations . This legitimate commercial activity
allowed the industry to promote its products to an adult
audience, while providing sporting and cultural bodies with the
funds they need to develop and survive .
•
We pointed out to the group that events such as the Heineken
Rugby Cup, the Magners League and the Jameson Dublin
International Film Festival have become iconic sporting and
cultural events in Ireland .
ABFI stated that any move to restrict alcohol sponsorship
of sports and major events, beyond the existing coregulatory sponsorship code agreed between industry and
the Department of Health and Children in 2008, would be
extremely damaging to a vital national industry and would
hamper the growth and development of Irish sporting and
cultural bodies .
The group formulated its report and presented it to the
Minister for Health and Children for consideration at the end
of 2009 . We await further developments and will continue
to make a robust defence of this important marketing
comminications tool in the future .
RSA graduated driving licence consultation
In January 2009, the Road Safety Authority (RSA) launched
a consultation process to seek the views of the public on the
introduction of a Graduated Driving Licensing (GDL) system for
learner drivers in Ireland .
According to the RSA, “the aim of a GDL system is to reduce
the number of collisions, deaths and injuries among learner
drivers, particularly the high risk 17 to 24 year olds, during
the learner period . GDL systems generally place a range of
restrictions on learner drivers which also apply for a period,
usually two years after passing a driving test .”
ABFI made its submission based on agreed drinks industry
policy . Our proposals included:
•
•
•
•
•
continued random breath testing on Irish roads;
standardisation and regulation of self-testing equipment;
better driver education;
awareness backed by the inclusion of drink driving module
in the driver theory test;
limit of 20 mg per 100 ml of blood for those driving on
learner permits .
The RSA will issue recommendations in 2010 .
Reduced BAC levels
The Minister for Transport published the Road Safety Bill
2009, in late October . Under the provisions of the bill, there
was a reduction in the maximum BAC level from 80mg to
50mg and to 20mg for “novice and professional drivers .”
It also “provides for the mandatory preliminary breath testing
of drivers, involved in road traffic collisions, at or near the
scene of the collision, where injury is caused to another person
that requires medical assistance .”
The bill also allows for three penalty points for those found
with a BAC of between 50mg and 80mg .
ABFI believes that evidence-based policy and the full
implementation of existing law provide the best route for
increased road safety .
ABFI stated that any move to restrict alcohol sponsorship
would hamper the growth and development of Irish sporting
and cultural bodies
www.abfi.ie
The training covered:
Codes
•
•
•
•
ABFI helped monitor and implement the various Irish
advertising, sponsorship, promotion and retailing codes of
practice throughout 2009 and worked with other stakeholders
to ensure the co-regulatory structure worked well .
Part of this approach saw ABFI lodging complaints to MEAS for
perceived breaches of its naming, packaging and promotion
code . These complaints involved the sale of inappropriate
products in retail outlets as well as promotions in pubs
and clubs that could be seen to encourage irresponsible
consumption .
We further engaged with Responsible Retailing of Alcohol in
Ireland (RRAI) as it launched its new code of practice for mixed
trading premises . We also continued our dialogue with the
advertising sector on codes governing content and placement
to ensure their smooth operation .
Codes training
In 2009, ABFI developed a comprehensive training programme
providing in-depth knowledge of all the codes of practice
relating to alcohol marketing and communications . The
programme was launched by the Minister for Health Promotion
and Older People, Áine Brady TD, on 30 June 2009 .
Minister Brady acknowledged the work of the industry
in ensuring that all marketing and communications were
targeted at an adult audience and that exposure to children
was minimised . However, she stressed that the Government
expects full compliance with the codes and that this would play
an important part in determining whether more restrictive
measures would be required in the future .
www.abfi.ie
ASAI codes on advertising content;
MEAS codes on naming packaging and promotions;
Advertising Placement and Sponsorship codes;
Responsible Retailing of Alcohol in Ireland code .
The programme gave participants a practical understanding of
how to interpret the codes and belief in both the letter and the
spirit of the codes .
Companies were given the option to run the training in-house
or participate in one of a series of public courses . By the end
of 2009, 85% of the industry had completed the training .
Further training dates will be rolled out in 2010 .
ABFI helped monitor and
implement the various Irish
advertising, sponsorship,
promotion and retailing
codes of practice
throughout 2009
Responsible marketing
International partners
ABFI’s work, and the work of the sector associations, was
greatly aided in 2009 by its co-operation with its international
partners.
UK
The ISA visited the Scotch Whisky Association in 2009 to
discuss issues of mutual concern and interest. This relationship
along with our connections with the Gin and Vodka
Association, ensured sharing of best practice on national and
international affairs.
Continued good working relations between the IBA and the
British Beer and Pub Association (BBPA) and between the ICA
and the National Association of Cider Makers (NACM) in the
UK were also key components of ABFI’s approach to policy
developments during 2009. Given the volume of activity
around alcohol policy in the UK, it was vital that Irish industry
remained fully informed on the debate about alcohol misuse
and minimum pricing.
As members of the wider European Spirits Association
(CEPs), the ISA contributed to European policy on spirits and
communicated information on EU and international affairs to
its members. The organisation also invited the ISA to make
a presentation on its successful budget lobbying activity in
2009.
Further, CEPs hosted two networking events, the MEP Dinner
and the Cocktail evening. These were key to its lobbying
activities as the ISA and its members had the opportunity
to meet MEPs, Irish Permanent Representatives and key
Commission officials in a more informal setting.
United States
In 2009 the ISA also established a relationship with the
Distilled Spirits Council of the United States (DISCUS). DISCUS
helps the ISA establish a picture of the US market, which is
then shared with members.
This sharing of knowledge and expertise greatly helped ABFI
keep its members fully informed of the international policy
backdrop.
EU
At European level, the Brewers of Europe (BoE) and the
European cider body, AICV, gave ABFI an important insight to
issues developing in the area of the proposed EU excise review
and the draft WHO Global Strategy to Reduce the Harmful Use
of Alcohol.
In September, the Irish Brewers Association made a
presentation to the Brewers of Europe at its Secretaries
General meeting in Malmo, Sweden on the effectiveness of
its lobbying activity and how the Irish industry educated
and influenced stakeholders on the issues of alcohol misuse
and excise policy. The IBA was also a party to the Brewers of
Europe commitment to the EU Alcohol and Health Forum.
www.abfi.ie
Section 2 - ABFI Category Associations
2
Irish Brewers Association
Beer Naturally
Despite 2009 being one of the most challenging years for
the industry, the IBA successfully raised the profile of beer
and began changing consumer perceptions of the country’s
favourite alcoholic beverage through the Beer Naturally
campaign . The campaign focused on the theme of beer as the
natural accompaniment to good food and built on two previous
special beer and food evenings .
The highlight of the campaign was the Taste of Dublin festival
in Dublin’s Iveagh Gardens where Beer Naturally held a series
of master classes to show participants how to match quality
beers with great foods . The classes gave participants the
opportunity to taste and appreciate the many different beer
styles and flavours available today .
Beer Naturally was supported by a comprehensive regional
and national media campaign and website:
www .beernaturally .ie .
2009 saw the publication of two reports: the IBA’s Irish Beer
Market 2008 and the Brewers of Europe/Ernst & Young
Contribution Made by Beer to the Irish Economy. The reports
highlighted the crucial role Irish brewing played in the Irish
manufacturing sector .
The reports showed the contribution by the brewing sector to
the economy, including:
•
•
•
•
•
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netexportsof40%;
over884millionlitresofbeerproducedperannum;
€427 million in excise receipts;
€642 million in VAT receipts in 2008 alone;
€416 million in income-related taxes;
€1 .7 billion in value to the Irish economy;
52,400indirectjobs,including44,000inthehospitality
industry .
These reports pointed out the immense challenges to the
industry as Ireland’s beer drinkers are faced with punitive
excise rates, which are among the highest in Europe . Coupled
with the deep recession and the considerable loss of cross
border trade, these reports highlighted the importance of
government support to allow the survival of the brewing
sector .
As a result of the work carried out, awareness of the
association and the sector has risen, engagement with
stakeholders has increased and the category has received no
discriminatory treatment by legislators or regulators .
www.abfi.ie
Beer market reports
www.abfi.ie
Strategy 2009
One of the key areas of work for the ICA in 2009 was the
treatment of cider in the proposed EU regulations that dealt
with the provision of information such as ingredients and
calorie content on the labels of food and drinks, including
alcoholic beverages .
2009 saw the ICA implement its Strategy for Cider . The
strategy was designed to raise the profile of the cider industry
and highlight how, like the other alcohol categories, it is
dedicated to social responsibility, is a vital national resource,
provides jobs and generates taxes .
Under the initial proposals, beer, wine and spirits would have
received a derogation on the provisions of the regulation
because of the special status of alcoholic beverages and the
need to ensure the information is appropriate and relevant .
Cider was not included in this derogation .
One of the key elements of the strategy was a national and
European political outreach programme designed to establish
the industry in the minds of decision makers . The ICA met
with a number of elected representatives who learned of
the economic importance of the industry . It also engaged in
meaningful correspondence with government departments on
the role they could play in harnessing the potential of the cider
industry and the contribution it makes to Irish economic life .
The ICA made urgent and repeated representations to
stakeholders at national and EU level on the matter, reinforced
by an ABFI delegation to Brussels and face-to-face meetings
with relevant committee members .
Irish Cider Association
The strategy saw the publication of the ICA’s Irish Cider
Industry brochure for national and European stakeholders
explaining what cider is, the economic contribution it makes,
member brands, its uniqueness, naturalness and heritage
and the contribution it makes to rural diversification and
agriculture . The document is now part of the suite of materials
used by ABFI when meeting with decision makers and acts as
a showcase for the industry .
As the regulation made its way through Parliament, constant
contact was maintained with both parliamentarians and the
Commission to ensure the unfairness in the treatment of cider
was dealt with .
Thanks to our coordinated efforts, the ICA received
correspondence from EU Health Commissioner Vassiliou’s
cabinet that stated “the lack of an explicit reference to cider . . .
should be considered a technical omission . . .The Council and
the European Parliament are leaning towards a clarification
of the scope of the particular regime for alcoholic beverages .
Such a clarification should ensure that cider is treated in the
same way as other competing alcoholic categories .”
The strategy was a great success and will be built in 2010 .
If our efforts are successful, upon passing of the regulations,
cider should receive exactly the same treatment as other
alcohol categories .
www.abfi.ie
Treatment of cider in draft EU Provision of
Food Information to Consumers regulation
www.abfi.ie
Under our new chair Jim Breen from C&C International, the
Irish Spirits Association refocused its agenda on business
issues affecting the industry . This new focus, combined with
our ongoing commitment to the trade agenda, assisted
companies through a difficult 2009 .
Irish cream and Irish whiskey technical files
The European Commission introduced the European Spirits
Regulation (110/2008) to ensure the highest standards of spirit
production in the EU . One aspect of the regulation dictates
that certain categories of spirits can only be made in specific
geographical locations . This GI (Geographical Indicator)
will ensure that products using the term “Irish whiskey” or
“Irish cream” have been produced in Ireland, using quality
ingredients and defined production techniques .
The completion of the Irish cream technical file, including how
it can be used to protect Irish cream products in the EU and
other international countries, continued with co-ordinated
efforts from the Department of Agriculture, Fisheries and Food
and ISA members . Drafting of the Irish Whiskey file continues
with all members discussing the necessary technical details to
be included in the document .
Economic contribution of the spirits industry
In 2009, the ISA gathered the most comprehensive picture to
date of its economic contribution to the spirits industry . The
industry operates throughout the country, providing much
needed employment in rural areas with 1,200 people directly
and thousands indirectly employed . With approximately €500
million spent on the purchasing of Irish raw materials annually,
the spirits industry is a vital component of the Irish economy .
www.abfi.ie
Trade
ISA members export over 90% of their products, therefore
access to international markets is vital . Members were kept
up to date on the latest market access news through contacts
in the European Spirits Association, the Distilled Spirits
Council of the United States and IBEC’s trade department,
which regularly provided information on all aspects of trade
relations .
2009 was an especially busy year for the ISA who worked
closely with the Department of Enterprise, Trade and
Employment, the Department of Foreign Affairs and local
embassies to address trade issues .
Activities in this area included:
•
•
•
•
•
Korea – ensured the Korean Free Trade Agreement was
accepted by all MEPs;
Turkey – meetings were held between Irish and Turkish
officials to address concerns related to the import of spirit
products, which were subjected to non- transparent and
excessively high taxation upon entry;
Brazil - addressed the strict import requirements on
liqueurs entering the country;
Colombia – ensured the Colombian Free Trade Agreement,
currently under negotiation, removes discriminatory tax
practices for imported spirits;
Thailand – concerns were raised to key Thai Ministers and
officials when a proposal was made to introduce graphic
warning labels on alcohol products . This issue is ongoing
and the ISA continues to monitor the matter .
Irish Spirits Association
The industry produces 114 million litres of spirit drinks annually
for domestic and international consumption and provides
€640 million to the Government though excise and vat .
Exports valuing approximately €1 billion are sent to over
100 countries worldwide . These premium products are brand
leaders internationally and Ireland’s global image has been
heightened as a result of the iconic spirit brands it produces .
www.abfi.ie
Irish Wine Association
Despite market conditions that saw job losses, company
closures and a decline in sales, the IWA worked continually to
inform Government Ministers and officials of the difficulties
faced by the wine industry in Ireland . Under the leadership
of its chair, Philip Robinson, Findlater Wine and Spirits Ltd,
the IWA provided its members with the information and data
needed to support their businesses .
Government meetings
Following the excise increase on wine in Budget 2009, the IWA
worked closely with the European Wine Association (CEEV)
and the UK Wine and Spirits Trade Association (WSTA) to
establish if this action breached previous European Court of
Justice Rulings on the tax treatment of wine . A legal report
indicated that the increase could be challenged if evidence was
available that showed it had a direct impact on the declining
sales of wine products .
As a result of the Government’s treatment of wine, the IWA
agreed it was necessary to change the opinion of policy
makers in Ireland . Statistics on the industry and its impact
on the Irish economy were collated into a short, visual
presentation that highlighted our key messages . Meetings
with key TDs proved successful and created an awareness
of the wine industry’s economic contribution . Many were
unacquainted with the unique environment that the wine
industry operates in and the devastating impact the increase
had on the sector .
www.abfi.ie
The IWA worked closely with Q4 Public Relations to develop a
communications programme that would increase the profile of
the wine sector in Ireland . Together we carried out interviews
and placed articles in newspapers and key industry trade
publications . This strategy complemented the meetings with
the government officials and raised key industry messages
with a larger public audience .
Budget 2010
In 2009, the IWA worked with ABFI to develop a
comprehensive strategy for the budget . Key statistics showed
a significant difference in price between North and South
of the border on wines and in particular sparkling wine,
which were used effectively in the campaign that called
for a 20% reduction in alcohol excise . The IWA’s meeting
with government officials supported and reiterated these
messages . Because of the co-ordinated and concerted efforts
of all involved, we were successful in reversing the excise
increase inflicted on the sector in 2008 .
Data collection
The IWA has taken on the role of supplying information on
Revenue Clearance and Country of Origin figures to members
and non members that had previously been provided by the
Irish Wine Board .
Media profile
www.abfi.ie
ABFI is a business sector within IBEC
IBEC is the voice of Irish business and employers both nationally and internationally. It is the umbrella body
for Ireland’s leading business and industry groups and associations. IBEC represents more than
7,500 member organisations, of all sizes, in all regions and across all industry sectors.
With acknowledged expertise in all aspects of business representation, policy development, employee relations,
human resources, employment law, environment, health and safety, trade and EU affairs, IBEC is uniquely
positioned to provide indispensible, tailored advice to members. To learn more, contact IBEC on www.ibec.ie
IBEC MISSION
IBEC promotes the interests of business and employers in Ireland by working to foster the
continuing development of a competitive environment that encourages sustainable
growth, and within which both enterprise and people can flourish.
www.abfi.ie
Alcohol Beverage Federation of Ireland (ABFI)
Confederation House 84/86 Lower Baggot Street Dublin 2
Telephone: +353 (0)1 605 1581 Fax: +353 (0)1 638 1581
Email: [email protected] www.abfi.ie
ABFI is a business sector within IBEC
www.abfi.ie

ABFI Annual Review 2009

Transcription

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