European Tour 2023: Meeting with Spirits Europe

2023-01-11 | All chapters

  • PB welcomed the Chamber and gave an introduction to Spirits Europe. She explained that China is the second biggest market for spirits exports from the EU (US number 1 and UK number 3), and that 75% exports to China is cognac.
  • UA said they still work with the FSPA in China and did a lot of work on decree 248 that came into effect 1st January 2022. He said this did not lead to a big drop in spirits sales as all main manufacturers managed to register and authorities showed some flexibility. He said the China market is relatively open, more so than India, and that 20 times more in value is exported to China than India. He noted that given the importance of the China market, they are concerned about voices in Brussels becoming more negative towards China, with some calling for decoupling, and predicting China could go the same way as Russia. He said that they joined the GI dialogue last year, which was positive, and noted that there is a strong push from China to push its domestic wine industry and attract more visitors to Ningxia and become a player in global wine.
  • A discussion then took place on the possible expansion of the EU-China GI list to include to non-food products.
  • AD outlined current conditions underlying EU-China relations with regard to F&B, noting the success of the GI Agreement and the advantages that it presents.
  • UA noted that the GI Agreement is great in theory, but that it is actually the big brands that are driving sales into China, although the GI Agreement does allow smaller brands to make inroads into the market. He noted the importance of the GI Agreement to politics and institutional relations. He also noted the importance of the GI Agreement in helping to increase enforcement against counterfeit products.
  • AD outlined need for stability in EU-China relations and preserving status quo regarding Taiwan and explained the results of the Chamber’s flash survey.
  • UA explained that Pernod Ricard and Diaggio have both invested in Chinese whisky distilleries in recent years, but most growth is in European exports of high-end spirits. He also noted that there is a large focus among European brands on Hainan as a retail centre.
  • UA lamented that F&B not seen as ‘popular’ within Commission as it is not ‘cutting-edge’ in the same way as high-tech industries.
  • UA asked the Chamber's views on the messaging we received in the past couple of days in meetings with officials, and referenced the ‘rebalancing’ message tweeted by Dombrovskis. AD responded that it is probably meant in a positive way and also directed to internal colleagues.
  • UA said Spirits Europe is considering doing a mission to China, but opening is still not completely settled.
  • PB said that they have concerns over issues such as labelling and standards and believe they have enough issues to set up a meaningful dialogue on wines and spirits with China.
  • AD and SB concluded by outlining the potential benefits of creating a Spirits Desk, and promised to send details on follow up on this issue.