Tag Archives: Alcoholic beverage

Go with the cash flow

LONDON - JANUARY 5:  Chancellor Alastair Darli...
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… or “How I will do my bit for the economy of this country via the wine aisle

For the last few years, pretty much since I started blogging, I’ve had something to say about the underhand way that the government uses Duty on wine to line their coffers, usually at the expense of the consumer, but by implication also affecting everyone else in the chain, from retailer to producer.

I have tried to argue that our Duty system, with high taxes on EVERY bottle of wine, no matter how good (or poor), have little impact on whether consumers drink to excess, which is supposed to be one of the reasons to raise the price.

I have tried to argue that lowering taxes would enable producers to invest more in the quality of the product and their communication/marketing, educating consumers to drink better, and drink more responsibly.

To no avail, of course.

Earlier this year, the Treasury admitted in a letter (during a campaign by Le Beast wines, Harpers, Drinks Business and Off Licence News) that:

“…alcohol duty is an important revenue stream for the government”

and

“The alcohol duty increases announced at Budget were not designed to tackle problem drinking but they will play their part in ensuring we can continue to fund the Government’s spending priorities.”

It seems that the anti-alcohol lobby and politicians are allowed to use these as justifications for putting Duty up, but when they get the money, they can then spend it on whatever they wish.

So, I’m changing tack.

Let’s be realistic: If the government needs money to shore up our economy and get people back to work (or keep them in work), then they will be forced to raise taxes. They could*:

  • tax me harder on my income, thus making me have to work longer/harder
  • tax me more on stuff I buy (VAT), thus discouraging me from buying that ‘stuff’ and thus not making money OR,
  • raise money from me while I am enjoying one of life’s real pleasures; drinking wine

To be honest, thinking about it like this (as I did when I went to sleep last night), I would rather be paying them extra dosh while I have fun, not while I work (of course, in my case I’m doing both).

So, Mr Chancellor (or simply Darling as we will now call him), I’m not excusing you. You could still do A LOT more to support wine businesses, producers, retailers, consumers and the health of this country, but as you do not seem to be prepared to do this, I guess I will just have to do my bit for the economy of this country via the wine aisle.

I hope you appreciate it!

And, Darling, when we start to emerge from this fiscal black hole you have helped to get us into, I trust you will do the decent thing and engage in a proper dialogue about what is actually good for the many responsible drinkers in this country.

Now, I’m off to pay some taxes, … by the glass.

* Of course, I suspect they’ll do all 3 of course! Watch out for 20% VAT, higher income tax and increases on Duty as a triple-whammy

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Would you like a dash of natamycin with that?

Chemicals
Image by stepbar via Flickr

“There could be a hint of natamycin in your wine.” Should you jump for joy, or jump away from the glass?

What if I told you there may be a trace of resveratrol? Drink up or Throw up?

What about knowing that isinglass, bentonite and copper sulphate had possibly been used in the making of your wine? Would that make you think: “Ooh! The wine maker cares that I get a fresh, clean and clear bottle every time, I’ll buy it!” or “Cripes! This wine is adulterated and manipulated. I couldn’t possibly drink this“?

There is a bit of a story brewing concerning the first item – Natamycin. This is a “fungicide and anti-microbial agent” that is allowed in some food stuffs in the EU, so at low doses is deemed to be fine for your health. Except, it is not listed as an allowable ingredient of wine, and therefore by (EU) definition is “banned”. It now appears that new testing methods, developed in Germany, are able to detect it, and they’ve identified it in several wines from Argentina, so the law says they cannot be sold.

[Poor Argentineans! Every time we think we might see more of their wines on sale, something happens to dash their hopes (I for one will continue to buy and drink Argentinean wines).]

So where does it come from and what does it mean? Who knows!?! (the source of this may be the real story)

I (personally) am going to operate on the assumption the ban is a mainly bureaucratic issue, that the substance is safe (at low levels) and that the issue will be more about wine making processes (and who might be cutting corners) rather than any real health scare.

But what about the bigger picture?

The bigger issue relates to those other items I mentioned. Which of these are good, and which are bad? Is the average consumer going to know? Or care?

There is a movement in the wine business that says that all wines should carry ingredient labelling (see what Bonny Doon are doing) just as most other food & drink products do. The question will be, will any consumer understand those ingredients, what they mean, and what the effects are? Are we defending the consumer, or simply confusing them “for their/our own good”?

Wine is a strange beast. In principle it is simple.

You take some grapes. You crush them. You let the yeast turn the sugar into alcohol. You filter the resulting alcoholic liquid and put it into bottles. You drink it.

Except the modern consumer demands certain reliable, high quality, clean wines, clear and without funny ‘floaty bits’, harmless or otherwise. Unfortunately, to achieve that, most wines go through a few processes that may leave mere ‘traces’, for which we need to invent new tests just to know they are there, of certain substances. Does the wine drinker need to know that? I’m not sure. As long as it is safe and fair (all wineries do more or less the same), is it necessary to know as long as it isn’t actually hidden?

I’m all for educating and informing consumers that want to know more, and 110% behind the idea of analysis to ensure what they drink is safe, but after that … ?

When the EU law changed and wines had to say “contains sulphites” I personally received several calls and emails from concerned consumers that their favourite tipple was now adulterated and “gave them headaches” when in fact nothing had changed, just the label.

In the near future, wine bottles will be “encouraged” (though I don’t think forced) to carry the pregnant-women-should-not-drink-alcohol symbol, a “responsible drinking” reminder, the usual legal source and content information, and the reminder that “this wine contains sulphites/sulfites”. I wonder how much further this will go, and whether, in a few years’ time, there will be any space left for the name of the wine maker and the name of the winery?

I hope that the reaction to this particular ‘event’ is not too bad for the Argentinean wine industry, and I also hope that common sense prevails. The rules in force are strong, the tests are in place and consumers are protected – let’s also hope that bureaucracy, even if well-intentioned, does not damage the wine industry for no particular gain.

What do you think? Would you like to see ALL ingredients listed on a wine label, or are you happy as things are? Do you trust the tests to keep you safe? What would you do with the information if it was provided? I look forward to hearing what you think of this issue

<end rant>

For the record:

  • resveratrol is, in theory, good – it is associated with positive effects on the heart … but there is the rest of the body to consider!
  • isinglass is used (by some) to get “bits” out of your wine, and all of it falls out of the wine (actually called ‘fining’) or is filtered out
  • bentonite is a clay that is a good filter for wine, nothing stays in the wine
  • copper sulphate is a bad substance on its own, but in tiny quantities can remove “off odours” (stinky, bad egg) from wines and is itself them removed too
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