Liquor Industry is the proverbial wayward wife who everyone loves to hate but cannot do without it. The industry also happens to be the last relic of the by-gone “license raj” saddled with plethora of rules and regulations and therefore problems and complications. Critical legal and social dynamics in the industry is discussed as under:

Ban on direct advertising –
Liquor and alcoholic products in India are banned from direct advertising. Due to the unfortunate social stigma attached with the concept of drinking and the overall non-acceptance towards the thought of advocating consumption of alcoholic beverages, contrary to the cultural and social structures prevailing in western countries, the government has been forced to ban direct propaganda and advertising of liquor and alcoholic products. The alcoholic products are, as a result, advertised by surrogatory method, i.e., via some other products. This makes it difficult to advertise and establish the products amongst the masses and especially to establish and launch new products/brands.

Excise regulations and Licenses –
Production of liquor and alcoholic products requires to pass through strict regulations in the forms of licenses and permits, without which one cannot initiate production. Further, interstate transfers are very difficult due to stricter regulations and permits and higher excise duty levies. Hence, the manufacturer is forced to enter into an agreement for “tie-up”/ lease arrangement with different manufacturing units in different parts of the Country, since establishing a new manufactory in every state would not be practical and cost-effective solution. In such kind of tie-ups, difficulties arise because though the brands and products belong to the manufacturing units, the license is in the name of the Lessor. Hence, all the licenses and compliances are to be complied by the Lessor. The sales proceeds are also deposited in his name.

Hence, in view of such arrangements, many a times the manufacturing company has to bear the brunt of non-compliances on the part of the Lessor. The deposit amounts and the sales proceeds of the manufacturing units also get held up with the Lessor when there arises dispute between both the parties. Hence, avoidable loss is sustained by the manufacturing units when their working capital gets blocked in such a manner, and remains blocked at the mercy of the seemingly endless litigations.

Infringement and passing off –
Once any brand/product attains popularity in the market and establishes itself, other smaller units manufacturing duplicates and thirds, try to encash on the goodwill and reputation of those products by using the brands which are similar to the popular brands. They adopt the similar name or design or label and produce cheaper products in the same category and try to make profits by selling the same in the market by virtue of the goodwill and reputation established by the original popular brands. Since the original manufacturer has already taken efforts to popularize his brands, he is forced to approach the Courts for taking action against the infringer and for stopping him from producing the said brands. The position assumes serious and complicated dimension when unscrupulous fly-bynight operations register look-alike, sound-alike labels in foreign countries and carry on their shady business forcing the original manufacturer to go for a series of litigation in foreign soil for a pretty long period.

Winding-up cases –
Taking advantage of the provisions in the Indian Companies Act, false and frivolous claims are cooked up against the Company and winding up petitions are filed for recovery of such cooked up claims, which actually is an abuse of the process of law. Though the Companies are in sound financial positions, irrespective of the fact, winding up petitions are filed on the pretext of claims and recovery thereof, when actually a civil action is to be initiated in such situations. Cost of stamp duty being very minimal at just Rs.200/-, this strategy is mainly adopted to tarnish the image of the Company, which is very unfortunate, as the monetary limit for filing a winding up petition against any Company is a claim Rs.500 and above, which enables all and sundry to initiate a action of such magnitude .

Dispute with Distributors –
In many cases, promotion and distribution responsibilities are given to the distributors by the manufacturing Companies who by abrogation of the understanding in the agreement resort to raising debit notes on the basis of false or inflated claims which ultimately leads to litigation.

Statutory and Labour Disputes –
Due to bad management practices followed by the Lessor units, there will be strike “go slow” by the workers or due to non-compliance of some statutory requirements and stoppage of work, the MGQ clause gets affected leading to a perpetuating litigation.

Willful non-compliance with the agreement –
It is also observed that there are quite a few cases where there will be willful violation of the agreement by different players, knowing fully well that it will take years and years for the manufacturer to get his grievances redressed in the present long drawn legal process. In fact, it is frequently overheard in the industry that “when a case by escalation to the highest court can take more than 10 years, where is the hurry to settle the case by paying-off, even the bonafide payments due to the manufacturers?”

Non-Disclosure Agreement with Employees –
The liquor industry being a small and a close-ended one, the critical manpower keep moving from one Company to the other and sometimes to the competitors. In such a situation, protecting the trade secrets and the Blend from the competitors is the real challenge and most of the Companies have stringent Non-Disclosure Agreement signed with their employees; but since the documentary evidence of proof of violation and passing-off of such information becomes difficult to establish, the matter leads to endless and futile litigation.


About the Writer -
Dr Keshab Nandy is the Executive Senior Vice President & Chief Vigilance Officer at Tilaknagar Industries Ltd, Mumbai. He has been felicitated by different bodies and institutions. Also have received commendations and awards including the prestigious Quality Culture Award at the World Quality Congress, New Delhi in December, 2002. He is also empanelled as National Resource Person on Quality by the Quality Institute of India, New Delhi for his works on Quality excellence through innovative HR practices.

He has been awarded Doctorate in Management for his significant work on achieving quality excellence through value-stream mapping by innovative HR practices. At present he is holding the position of Director in the Board of Directors of M/s Prag Ltd.,Hyderabad, Director in the Board of Directors of M/S Surya Organics Ltd.,Bangalore and he is the Chairman of the Expert Committee on Intellectual Property Rights in the Indian Chamber of Commerce & Industry.

http://www.ambrosiaindia.com/

India’s wine consumption is rapidly increasing and is forecasted to grow at a compounded annual growth rate of 27 per cent from 2010-12. India has emerged as one of the fastest growing markets for wine consumption on the global map.

With a population base of over 1.1 billion, the consumption of wine is extremely low, indicating vast potential for future growth. Besides low consumption level, various other factors such as increasing disposable income, amplified wine marketing and influence of western cultures have given a new turn to the wine consumption pattern in India.

The Indian Wine market is largely dominated by domestically produced wine and imports account for a less share in the total consumption. The sales of domestic wines will continue to dominate the Indian wine market over the forecast period, but high growth will also be seen in the consumption of imported wine. The consumption of imported wines will rise at a CAGR of around 33 per cent during 2010-2012, well above the industry’s overall growth.

The wine market in India today is still in its nascent stage. The industry is just over one million cases of wines manufactured in India and 0.15 to 0.2 million cases of imported wines. The value of the Indian wine market is around 2 per cent of the total alcohol beverage industry. A lot needs to be done in terms of education, awareness and demystifying wine as a product.

The scenario is changing rapidly: A large number of Indians have the right consumer profile to embrace wine as a lifestyle beverage. Once the privilege of the educated elite, today potential lies among the growing middle-class who enjoying increasing disposable income, tourism and women consumers.

The rise in consumption can also be attributed to factors including the perception of health benefits produced by wine, the fact that wine is lower in alcohol than spirits, in addition to the ‘lifestyle’ image. India is switching from whiskey to wine and beer. Also big retail chains in certain states are now allowed to sell wines.

More and more people are drinking wine, every new restaurant that opens in the cites has a wine list, and awareness is growing fast. Women are drinking in much bigger numbers, and often their first choice beverage is wine. The movies reflect this change, with Bollywood actresses routinely seen drinking wine! The wine consumption is expected to grow at a rate of 30 per cent in the next 10 y ars. This growth is not only sustainable, but could even be conservative if duties were lowered. In the next ten years the wine consumption could reach more then 10 million cases. Cheers!

Presently most of the imported wine come from France, Italy, Australia, Chile, USA, South Africa and New Zealand. France has the biggest market share of approximately 40 per cent followed by Italy (15%) and Australia (12%).

Up to 80 per cent of wine is consumed in the major Indian cities: Mumbai (39%), Delhi (23%), Bengaluru (9%) and the foreign tourist dominated state of Goa (9%), the remaining 20 per cent are sold in the rest of India. The Red wine consumption is pegged at 45 per cent followed by white wine with 40per cent sparkling wine 13 per cent and Rosé wine by two per cent.

As India globalises the Indian consumer is evolving. Although the Indian alcobev industry is regulated, the efforts to woo the consumer continues unabated. A report.

A recent study released by the BMI India Retail Report for the third quarter of 2010, forecasts that total retail sales will grow from $353 billion in 2010 to $543.2 billion by 2014.

But the big question is how much of this is translated to the alcobev industry. In India, where the mantra for the alcobev industry is produce but don’t sell, building brands is a challenge. With curbs in opening of retail shops, prohibitions in some states, monopoly retail practices in major drinking states, high taxation and curbs on MRP is a nightmare for all marketers. But increasing personal wealth, an apparent trend amongst consumers towards increasing personal consumption expenditure and improved retail infrastructure in the country could provide the perfect fillip for alcobev companies. Retail outlets like Godrej Nature’s Basket, Living Liquidz and Metro hope to change the face of alcobev retailing.

While pricing is a major factor with the low-end IMFL brands constituting the bulk of the alcohol, thus confirming India’s status as a price sensitive market. In recent times, companies have been making efforts to introduce premium products in an effort to improve the retail value of their brands and to boost profits.

While traditional companies still resort to the push strategy, MNCs have effectively demonstrated that the pull strategy can be equally effective.

However due to the huge distribution clout enjoyed by some, the implications of retail store loyalty cannot be discounted. Some retailers who resort to stocking only a single company brands due to reasons of rising inventory costs, costs of stockkeeping units and shelf space constraints, the possibility of losing the entire business of these consumers is also a possibility. The pattern of loyalty may enable the retail store to carefully pick its merchandise and stock keeping units in line with the preferences of loyal customers.

Promotions or MRP-led offers have boosted sales but sometimes wafer thin margins offer little leeway for such marketing activities. However it can be said that retailers who identify and formulate loyalty-driving consumption strategies with their customers at a category level will sustain their success rather than those who attract one-time MRP-only led promotions.

Globally there has been a sea change in consumer behaviour. Consumers are drinking better but less. This has been attributed to health concerns. The recessionary trends has also prompted people to drink at home rather than bars and restaurants. People earning less are increasing their beer consumption and are opting for cheaper branded alcoholic drinks.

According to a Just-Drinks report, over the next 10 years, 1.2bn people in Asia- Pacific will be born into or move into the global middle class, representing the largest single expansion in consumer spending power ever recorded.

Using unique flavours and ingredients has become a focus area for differentiating products and adding perceived value, as they can enhance a drink’s positioning of authenticity, heritage, quality, or exclusivity.

Consumers increasingly want to know the story behind a brand, as part of the discovery that sets them apart from others and giving them ‘insider’ status into a perceived exclusive world.

The popularity of liquor within the duty free retail environment has been illustrated with recent research conducted by the Generation Group, termed the TREND Beverage Index, which measures actual sales through the cash registers, found that global duty free and travel retail sales of liquor have advanced 0.9 per cent in comparison to the same time last year.

The report also noted that there will be an increase in demand for healthier, lighter, whiter and mixed drinks as consumer preferences of the younger market, and the increasing female drinking market, are felt through duty free sales. They also reckon that approximately 80 per cent of wine and spirits consumers buying decisions are made before getting to the store. Price is now primary to the buying decisions of 87 per cent of consumers, followed by "a product I like" by 84 per cent of consumers.

Liquor marketers are also optimistic liquor sales in the travel retail channel can be doubled in value over the next five years. Most reckon that in response to the downturn in global travel, duty free sales have experienced growth. The continued expansion of the market will require innovation, imagination and investment to sustain these increases in consumer preference for duty free liquor.

India’s already huge, growing and evolving consumer population is the focus of attention for all marketers of liquor and wine. Although 80 per cent of India’s nearly 1.3 billion population follows Hinduism, with alcohol strictly forbidden in Orthodox Hindu society especially during fasting days. However with globalisation the western way of life has begun to influence and alter alcohol consumption patterns.

Growing consumer demand had helped fuel huge growth in this nascent wine industry in the last few years. But during the global recession in 2008 and 2009,domestic consumers began to reduce their wine purchases. This is particularly due to increasing wine taxes in key markets such as Mumbai, Bengaluru, and Goa, thus increasing the retail price of wine.

However, a Data Monitor report suggests that for the most part, alcohol consumption remained an area in which Indian consumers appeared to not significantly trade down their preferences; desiring to still have their “affordable luxuries”. While many consumers continue to enjoy their preferred alcoholic drinks, a large majority is looking at the value of a product relative to its cost and is watchful of the amount they are spending. Despite this, consumer habit and brand continue to have a large influence on alcohol purchases, affecting almost one-third of those who consume alcohol. While there has been an overall decrease in brand loyalty among the consumer market, the presence of private label alcohol in India remains quite low. India’s expanding middle class is also one of the fastest growing in the world and predicted to reach 583 million in 2025. By 2015, the number of people added to the alcohol drinking age population will be 45 million.

The food and drink market is one of the fastest growing segments of India’s retail industry. Howeever India is geographically diverse, with different resources and living standards spread across the country’s 28 states. With excise duties and rules differing in each state it is often said that marketing in India is like marketing in 28 different countries.

However 72 per cent of India’s population currently resides in rural communities, but it is projected that 40 percent of the total population is projected to be living in urban locations by 2025. Accordingly, urban consumers represent a more realistic target market for Alcobev, processed and imported food items.

India is one of the fastest growing markets for alcoholic drinks in the world, with a CAGR of more than 9% during 2010-2013. In India, religion plays a large role in consumer eating habits, with wine and liquor being no exception. While it is considered to be a forbidden, taboo drink for the greater society. Consumers’ tastes for different types of food and beverages have also been evolving and there has been a move away from traditional beverages toward fine wines, beers and spirits.

The Indian alcobev industry which is now a sellers market with easy access to wide variety of brands has had changed buying behaviour of consumers, who are now clearly seeking “value” over “price”. Sociologically, the country has undergone a sea change. Lifestyles have changed drastically. Today, youngsters are drinking when them deem fit and to suit their lifestyle. Social drinking among women is also on the rise and sometimes pubs are more frequented by women than men. .

A highly regulated environment and limited retailing opportunities in the alcobev industry is unfortunately restricting the growth of the industry. Consumer seek more and more information on products and services and in absence of a communication platform the industry faces a major handicap. But with time if the industry can consolidate itself especially the MNCs and create a revenue model to sustain their activities the future is definitely bright.

As the civilization advanced so does the mankind, armed with greater technology the making of wine became better understood and hence it became possible to determine what it meant for a Wine to be adulterated. This gave birth to wine Regulations - to describe what is required for a beverage to be called Wine Writes Rajiv Seth.

Wine Lovers across the globe have paid very less attention in understanding this aspect of wine industry and the subject of wine laws have been mainly thought to be a topic of wine academicians but how these wine laws affect the consumers and the international wine business which is ruled by a rigid legislative controls and bilateral trade obligations is the new hot topic of wine world now a days.

What are wine laws?
Wine laws are the set of rules which regulate various aspects of production and sales of wine. The purpose of wine laws includes combating wine fraud, by means of regulated protected designations of origin, labeling practices and classification of wine, as well as regulating allowed additives and procedures in winemaking and viticulture. Legislation affecting all kinds of alcohol beverages, such as the legal drinking age and licensing practices related to distribution, Taxation and sales, are usually not considered wine laws.

Wine is regulated by regional, state, and local laws. The laws and their relative rigidity differ for New World and Old World wines. Old World wines tend to have more stringent regulations than New World wines.

Why wine laws are required?
In the international wine trade Wine Laws enforce the regulations about the additives and processes that can be used in winemaking, which are collectively known as oenological practices. The set of wine regulations covers the details of oenological practices that are permitted within a particular country and regimes that limit additive use such as organic wine production and environmentally friendly wine production, regulations of wine importation, and scope for multilateral and bilateral wine trade agreements, and labeling of additives as well as of wine produced domestically or imported from other jurisdictions.

In the international wine trade there are a number of different approaches for the import of wine from requiring imported wine to use the same oenological practices as the wines of the country into which it is imported, to the EU’s approach of bilateral wine trade agreements with individual countries that cover permitted oenological practices, and the multilateral Mutual Acceptance Agreement on Oenological Practices between the member states. In terms of labeling of additives, all jurisdictions will soon require labeling of sulphites and Australia and New Zealand require the labeling of additional allergens.


What are Oenological Practices?
In the international wine industry terminology, additives range from substances that are added to increase the alcoholic strength of the wine, such as sugar, to substances that are added to ensure or enhance the stability of the end product, such as fining materials. Processes cover activities such as filtration to more recently developed techniques such as reverse osmosis which can be used to remove water from must, extract flavour from must or remove alcohol from wine. The substances that are added during winemaking together the various processes that wine undergoes, some of which remove substances from wine or must, are referred to as oenological practices. It is to be noted that these practices differ from one country to another or even region to region depending upon local climatic conditions or preferences to wine styles for which the region has gained recognition.

How Wine can be adulterated?
Examples of ways in which wine could be adulterated are adding water, adding other (usually cheaper) substances such as spirits or other wine, adding substances to fix faulty wines such as milk, mustard, ashes, nettles and lead (which prevents wine from becoming vinegary and makes it taste sweeter, but which is unfortunately poisonous). Alternatively the beverage could be called wine, but actually be made with fruits other than grapes (or even grapes that are not permitted grape varietals) to add flavour or for cheaper production, or it could be made from raisins – something that is often done in home winemaking. Today, laws are very specific about what wine is, and how it can be made. Since the use of additives is legislated, laws can be broken to produce a product which can be otherwise harmful for safe human consumption.

How the additives have been misused in the past ?
For the purposes of this discussion, misuse can be classified into two major categories – that which breaks laws and does not injure human health, and that which breaks laws and injures human health. The major example, in the last century, where people were seriously injured and died is the methanol-based “Barbera”. This “wine” was made from odds and ends of wine together with methanol in Italy in 1985, and resulted in the deaths of 20 people while others went blind. Surprisingly, this did not have a large impact on Italian sales but it did take a while for Barbera to recover its reputation (James 2004). More recently in 1999, during the BSE (bovine spongiform encephalopathy, popularly known as “mad cow disease”) crisis, one hundred thousand bottles of wine from the Rhone was seized on the grounds that they may have been fined with dried cows’ blood, a practice banned in the EU from 1997 onwards (The Times 1999). For people who are seriously allergic to sulphur dioxide, the 2002 Creston Bay Cabernet Sauvignon from Australia was potentially dangerous, and was withdrawn for sulphur dioxide levels up to 17 times the permitted level.

In terms of misuse without serious health implications, there have been a number of examples since the turn of the century. In 2000, glycol was found in low-end Alsace wine leading to the wines’ withdrawal and not much else. In 2004, there were rumors of a cover-up of a scandal about additives in Bulgarian wine (Gebler 2004) and watered down Bulgarian wines were found on sale in 2003.

The UK Wine Standards Board is currently investigating Spanish wines with added sucrose, alcohol and water. In 2000, two unhappy employees accused an Australian winery of adding silver nitrate to their wines to improve aroma. The winery was fined, its future production was tested for the additive and it was audited to ensure it complied with all wine laws.
Probably the most well-known scandal is the Austrian “anti-freeze” scandal. In 1985, it was discovered that some Austrian wines contained diethylene glycol which gave the wines more body and made them taste sweeter (Robinson 1999). This revelation led to a drop in the demand for Austrian wine outside Austria, and a move to stricter wine laws. The additive which is used as anti-freeze does not harm people but is illegal so the health aspects were not serious. The addition was discovered after a red flag was raised by a tax official who could not understand why a wine producer was claiming for VAT spent on diethylene glycol. Additionally, Japanese wines were also found to be contaminated with diethylene glycol from blending of Austrian wines, permitted by weaker laws on origin labeling.

The most relevant scandal from the point of view of South Africa is the recent flavourants scandal. In an article published on 14 November 2003 in the South African daily newspaper, Business Day, Michael Fridjhon a well-known wine industry personality described the rumors circulating in the South African wine industry about the use of flavourants in Sauvignon Blanc . Note that all these flavourants can be legally used in alcoholic beverage coolers in SA. The Wine and Spirit Board responded on 18 November 2003 with a statement that they had been developing a detection method, and that it would be applied to the 2004 harvest (Wine and Spirit Board 2003). In the one case, green peppers had been used and in the other case, synthetic flavourants. Although neither of the additives was harmful to human health, they were both illegal in terms of South African wine legislation.
There is also misuse which could be viewed as bending the laws rather than breaking them. An example is the use of reverse osmosis in Europe which is permitted for must concentration but not for wine concentration. One famous Italian winemaker, has claimed that most reverse osmosis in the EU is done illegally because it is applied to remove water from the wine after fermentation as opposed to being used for must concentration before fermentation, which is legal (Beckett 2003).

In California, the addition of water is a big issue. Unlike the federal winemaking regulations which permit water addition for a variety of reasons, the state laws of California are much more restrictive, and only permit the minimum water required to facilitate a normal fermentation. Water can also be used to reduce alcohol levels to produce more elegant wines and addition for this reason is not permitted within the legislation, however it is difficult to distinguish between the two practices. It is claimed that this “watering back” is common and that much of the wine produced in California has had water added before or during fermentation.

Standards of Wines
Almost all wine producing countries have included Wine Standard Specifications in their Wine Regulations/Legislations/Laws; however their approach may vary from one jurisdiction to another depending upon their basic approach for consumer’s health considerations to their local climatic conditions. Usually all Standards sets general definitions for wine and wine products and provides permissions for the addition of certain foods Additives and Processing aids during the production of wine. The wine Standards also sets the compositional and other requirements for wine and all wine categories that are imported into its jurisdictions. It is to be noted that certain limits can also be imposed on the use certain food Additives and Processing aids commonly used during the production of wine.

Complications in standard specifications arises when certain limits vary from one jurisdiction to another usually in specification value for their contents of ethyal alcohol, residual Sugar levels, pH values, total acid contents, volatile acidity, total sulphur dioxide, free sulphur dioxide, Copper, Iron and Tannins levels and Thus making it imperative for all export consignments to meet all Standard specification applicable in the jurisdiction of Export destinations. However in order to avoid these complications the new world country producers have enacted Mutual Acceptance Agreements (MAA) between the member nations and these group is known as World Wine Trade Group. However EU is not a member of this group and has in place other Bilateral Trade agreements or sometimes arrangements to avoid these complications.

Why India Need consistency in wine policy with Wine Regulations in place

The identified objectives of Indian wine regulations should be:
- To increase the competitiveness of Indian wine producers in international wine trade
- To strengthen the reputation of India as quality wine producer
- To create a wine regime that preserves the best traditions of wine production, provide and empower the grape growers both economically and socially.
- To ensures that all production respects the environment.
- To remove a major marketing handicap for Indian wine exporters
- To promote wine culture in rural as well as in urban populace by spreading awareness of benefits of wine drinking over hard liquor
- To create a wine policy that will give due consideration to the increased concerns of society as regards health and consumer protection,
- To emphasize the need for World Trade Organization (WTO) compatibility and consistency with international wine trade policies.
The challenge is to adapt the production structure and regulatory framework in the interest of a sustainable and competitive Indian wine industry with long-term prospects.

Rajiv Seth

Rajiv Seth is an Author and a wine educationist who has studied oenology for a very long spell of his life. He is an expert in international wine legislation especially European Union. Recently he has been appointed as the Chairman of Oenology committee set up by Indian Grape Processing Board.

“As the civilization advanced so does the mankind, armed with greater technology the making of wine became better understood and hence it became possible to determine what it meant for a Wine to be adulterated. This gave birth to wine Regulations - to describe what is required for a beverage to be called Wine”

:Rajiv Seth
Training *** Seminar on Marketing, Packaging, Standards and other aspects of Wine sector in the country on 24th-25th January 2011, Pune, Maharashtra


International Wine Regulations: An Introduction

Wine laws are the set of rules which regulate various aspects of production and sales of wine. The purpose of wine laws includes combating wine fraud, by means of regulated protected designations of origin, labeling practices and classification of wine, as well as regulating allowed additives and procedures in winemaking and viticulture. Legislation affecting all kinds of alcohol beverages, such as the legal drinking age and licensing practices related to distribution, Taxation and sales, are usually not considered wine laws.

Wine is regulated by regional, state, and local laws. The laws and their relative rigidity differ for New World and Old World wines. Old World wines tend to have more stringent regulations than New World wines. Various wine laws, however, may include appellation-based regulations that cover boundaries as well as permitted grape varieties and winemaking practice-such as the French Appellation d'origine contrôlée (AOC), Italian Denominazione di origine controllata (DOC), Spanish Denominación de Origen (DO) and Portuguese Denominação de Origem Controlada (DOC). In some New World wine regions, such as the United States and Australia, the wine laws of the appellation systems (American Viticultural Area (AVA) and Australian Geographical Indication (GIs)) only pertain to boundary specifics and guaranteeing that a certain percentage of grapes come from the area listed on the wine label.


A Brief History of Wine laws

The oldest known wine laws were created by the Roman emperor Domitian, who circa 92 AD issued an edict that banned the plantings of any new vineyards in Italy and ordered the uprooting of half of the vineyards in Roman provinces. The purpose of the edict was to improve the food supply of Roman cities by increasing the production of cereals. There is evidence to suggest that Domitian's edict was largely ignored in the Roman provinces. Domitian's edict, while probably not followed to any greater extent, stayed in effect for 188 years until Emperor Probus repealed the measure in 280 AD.

In the Holy Roman Empire, the oldest wine law was created by the Reichstag 1498 to combat wine fraud.

In the wake of the Great French Wine Blight, which led to much wine fraud to supplement diminishing supply, wine laws were created in France to combat fraud. The French wine legislation later evolved to the AOC system, and inspired common European Union regulations.


Why wine laws are required?

In the international wine trade Wine Laws enforce the regulations about the additives and processes that can be used in winemaking, which are collectively known as oenological practices. The set of wine regulations covers the details of oenological practices that are permitted within a particular country and regimes that limit additive use such as organic wine production and environmentally friendly wine production, regulations of wine importation, and scope for multilateral and bilateral wine trade agreements, and labeling of additives as well as of wine produced domestically or imported from other jurisdictions.

In the international wine trade there are a number of different approaches for the import of wine from requiring imported wine to use the same oenological practices as the wines of the country into which it is imported, to the EU’s approach of bilateral wine trade agreements with individual countries that cover permitted oenological practices, and the multilateral Mutual Acceptance Agreement on Oenological Practices between the member states. In terms of labeling of additives, all jurisdictions will soon require labeling of sulphites and Australia and New Zealand require the labeling of additional allergens.


What are Oenological Practices?

In the international wine industry terminology, additives range from substances that are added to increase the alcoholic strength of the wine, such as sugar, to substances that are added to ensure or enhance the stability of the end product, such as ?ning materials. Processes cover activities such as ?ltration to more recently developed techniques such as reverse osmosis which can be used to remove water from must, extract ?avour from must or remove alcohol from wine. The substances that are added during winemaking together the various processes that wine undergoes, some of which remove substances from wine or must, are referred to as oenological practices. It is to be noted that these practices differ from one country to another or even region to region depending upon local climatic conditions or preferences to wine styles for which the region has gained recognition.

How Wine can be adulterated?

Examples of ways in which wine could be adulterated are adding water, adding other (usually cheaper) substances such as spirits or other wine, adding substances to ?x faulty wines such as milk, mustard, ashes, nettles and lead (which prevents wine from becoming vinegary and makes it taste sweeter, but which is unfortunately poisonous). Alternatively the beverage could be called wine, but actually be made with fruits other than grapes (or even grapes that are not permitted grape varietals) to add ?avour or for cheaper production, or it could be made from raisins – something that is often done in home winemaking. Today, laws are very speci?c about what wine is, and how it can be made. Since the use of additives is legislated, laws can be broken to produce a product which can be otherwise harmful for safe human consumption.



How the additives have been misused in the past

For the purposes of this discussion, misuse can be classi?ed into two major categories – that which breaks laws and does not injure human health, and that which breaks laws and injures human health. The major example, in the last century, where people were seriously injured and died is the methanol-based “Barbera”. This “wine” was made from odds and ends of wine together with methanol in Italy in 1985, and resulted in the deaths of 20 people while others went blind. Surprisingly, this did not have a large impact on Italian sales but it did take a while for Barbera to recover its reputation (James 2004). More recently in 1999, during the BSE (bovine spongiform encephalopathy, popularly known as “mad cow disease”) crisis, one hundred thousand bottles of wine from the Rhone was seized on the grounds that they may have been ?ned with dried cows’ blood, a practice banned in the EU from 1997 onwards (The Times 1999). For people who are seriously allergic to sulphur dioxide, the 2002 Creston Bay Cabernet Sauvignon from Australia was potentially dangerous, and was withdrawn for sulphur dioxide levels up to 17 times the permitted level (Styles 2003).

In terms of misuse without serious health implications, there have been a number of examples since the turn of the century. In 2000, glycol was found in low-end Alsace wine leading to the wines’ withdrawal and not much else (Gebler 2000). This presumably was diethylene glycol, since ethylene glycol is toxic. In 2004, there were rumors of a cover-up of a scandal about additives in Bulgarian wine (Gebler 2004) and watered down Bulgarian wines were found on sale in 2003 (So?a News Agency 2003). The UK Wine Standards Board is currently investigating Spanish wines with added sucrose, alcohol and water (Gregory 2004). An investigation into very cheap wines in South Africa showed that some of these wines had added water as well as arti?cial sweeteners (NAMC 2002). In 2000, two unhappy employees accused an Australian winery of adding silver nitrate to their wines to improve aroma (Grape 2000). On further testing, it was found that some of the exported wines of Kingston Estate Wines contained silver nitrate, but at levels lower than the maximum allowed for drinking water (Truss 2000) so the addition although illegal was not harmful to human health. The winery was ?ned, its future production was tested for the additive and it was audited to ensure it complied with all wine laws. Additionally, the whole industry was to be checked for the use of this product (Truss 2000).

Probably the most well-known scandal is the Austrian “anti-freeze” scandal. In 1985, it was discovered that some Austrian wines contained diethylene glycol which gave the wines more body and made them taste sweeter (Robinson 1999). This revelation led to a drop in the demand for Austrian wine outside Austria, and a move to stricter wine laws (Robinson 1999). The additive which is used as anti-freeze does not harm people but is illegal (not to be confused with ethylene glycol which is also used as anti-freeze and is poisonous) so the health aspects were not serious. The addition was discovered after a red ?ag was raised by a tax of?cial who could not understand why a wine producer was claiming for VAT spent on diethylene glycol (James 2004). Some German wines were also found to have low concentrations of diethylene glycol indicating that they had been illegally blended with the adulterated Austrian wines, but this had a limited effect on the German market (Robinson 1999). Additionally, Japanese wines were also found to be contaminated with diethylene glycol from blending of Austrian wines, permitted by weaker laws on origin labeling (Seeman 1986).

The most relevant scandal from the point of view of South Africa is the recent ?avourant scandal. In an article published on 14 November 2003 in the South African daily newspaper, Business Day, Michael Fridjhon a well-known wine industry personality described the rumors circulating in the South African wine industry about the use of ?avourants in Sauvignon Blanc (Fridjhon 2003). Note that all these ?avourants can be legally used in alcoholic beverage coolers in SA. The Wine and Spirit Board responded on 18 November 2003 with a statement that they had been developing a detection method, and that it would be applied to the 2004 harvest (Wine and Spirit Board 2003). In the one case, green peppers had been used and in the other case, synthetic ?avourants (Morris 2004). Although neither of the additives were harmful to human health, they were both illegal in terms of South African wine legislation.

There is also misuse which could be viewed as bending the laws rather than breaking them. An example is the use of reverse osmosis in Europe which is permitted for must concentration but not for wine concentration. One famous Italian winemaker, has claimed that most reverse osmosis in the EU is done illegally because it is applied to remove water from the wine after fermentation as opposed to being used for must concentration before fermentation, which is legal (Beckett 2003).

In California, the addition of water is a big issue. Unlike the federal winemaking regulations which permit water addition for a variety of reasons, the state laws of California are much more restrictive, and only permit the minimum water required to facilitate a normal fermentation. Water can also be used to reduce alcohol levels to produce more elegant wines and addition for this reason is not permitted within the legislation, however it is difficult to distinguish between the two practices (Andrews 2005). It is claimed that this “watering back” is common and that much of the wine produced in California has had water added before or during fermentation (Andrews 2005).



Detection and analysis

Addition of illegal substances is not easy to detect, and different substances need to be checked with different tests. There are tests for addition of water, sugar, organic acids, colourants and synthetic ?avourants. These are not fast or cheap tests. Other practices for which there are tests are addition of mineral acids such as sulphuric acid, and industrial glycerol. Many of the bodies that certify wine do test for the presence of certain chemicals, or require an analysis from an approved laboratory. These analysis typically concentrates on the substances for which there are speci?ed maximum levels in legislation such as alcohol (ethanol), methanol, sulphur dioxide, volatile acidity and metals. Many of these levels are set for health reasons, with some more for aesthetic reasons such as volatile acidity, and some for de?nitional and labeling reasons such as alcohol. For reasons of cost-effectiveness, it makes sense to prioritize testing for harmful substances over testing for unapproved substances with no health implications. In most of the cases, listed above, misuse was not directly found by the application of testing – often someone being prepared to speak out led to testing.



Why India Need consistency in wine policy with Wine Regulations in place

The identified objectives of Indian wine regulations should be:

- To increase the competitiveness of Indian wine producers in international wine trade

- To strengthen the reputation of India as quality wine producer

- To create a wine regime that preserves the best traditions of wine production, provide and empower the grape growers both economically and socially.

- To ensures that all production respects the environment.

- To remove a major marketing handicap for Indian wine exporters

- To promote wine culture in rural as well as in urban populace by spreading awareness of benefits of wine drinking over hard liquor

- To create a wine policy that will give due consideration to the increased concerns of society as regards health and consumer protection,

- To emphasize the need for World Trade Organization (WTO) compatibility and consistency with international wine trade policies.

The challenge is to adapt the production structure and regulatory framework in the interest of a sustainable and competitive Indian wine industry with long-term prospects.



Standards of Wines

Almost all wine producing countries have included Wine Standard Specifications in their Wine Regulations/Legislations/Laws; however their approach may vary from one jurisdiction to another depending upon their basic approach for consumer’s health considerations to their local climatic conditions. Usually all Standards sets general definitions for wine and wine products and provides permissions for the addition of certain foods Additives and Processing aids during the production of wine. The wine Standards also sets the compositional and other requirements for wine and all wine categories that are imported into its jurisdictions. It is to be noted that certain limits can also be imposed on the use certain food Additives and Processing aids commonly used during the production of wine.

Complications in standard specifications arises when certain limits vary from one jurisdiction to another usually in specification value for their contents of ethyal alcohol, residual Sugar levels, pH values, total acid contents, volatile acidity, total sulphur dioxide, free sulphur dioxide, Copper, Iron and Tannins levels and Thus making it imperative for all export consignments to meet all Standard specification applicable in the jurisdiction of Export destinations. However in order to avoid these complications the new world country producers have enacted Mutual Acceptance Agreements (MAA) between the member nations and these group is known as World Wine Trade Group. However EU is not a member of this group and has in place other Bilateral Trade agreements or sometimes arrangements to avoid these complications.




Comparative wine laws
European Union

In the European Union (EU), much of the wine law is common to all countries through the European Union wine regulations which is a part of the Common Agricultural Policy (CAP). The CAP Wine Regime consists of a set of rules that govern the wine sector, with the aim of achieving a balanced and open market. The principal features are rules governing production, oenological practices and processes, classification of wines, a range of structural and support measures, detailed rules governing the description and labeling of wines, and imports from non-EU countries.


In addition to regulations that apply to all EU members, each EU country has its own framework of laws which govern aspects of winemaking such as the percentage of a grape to be included in a wine labeled with that variety name. For instance, in France wine professionals ascribe to the Appellation d’Origine Contrôlée (AOC) system, which guarantees the origin of wine and other food products, such as cheese.


United States

In the United States, the wine laws are more flexible than European standards in regards to regulations on what viticultural and winemaking practice is allowed in each wine region. The Bureau of Alcohol, Tobacco, Firearms and Explosives (BATF) defines and approves applications for regions to become American Viticultural Areas. This system was established in 1978 with the Augusta AVA in Missouri designated as the first recognized AVA on June 20, 1980. A sizable portion of American wine laws relate to wine labeling practices and include the stipulations that if an AVA name appears on the label that at least 85% of grapes used to produce the wine must come from that AVA. In addition to AVAs, every American state and county can produce wine and label it under their state/county wide appellation provided at least 75% of the grapes come from that area. The state of California and Texas have wine laws increasing the requirement to 100% and 85%, respectively, for use of a state-wide appellation on the wine label.

The appearance of grape variety (or varietal) and vintage year is also regulated by US wine labeling laws with requirements of at least 75% for the grape variety and 95% being harvested in that vintage year for either to appear on the wine label. The state of Oregon has increased the restriction for grape variety to 90%, with exception of Cabernet Sauvignon which under Oregon wine laws can have a minimum 75%. Additionally, all US wine must include the Surgeon General warning about dangers associated with alcohol consumption and a warning about the possible use of sulfites. Several wineries and importers have had conflicts with the BATF over these labeling requirements, one notable example being the importer Kermit Lynch. The criticism is typically centered on the absence of inclusion about the potential positive aspects of moderate wine consumption (such as the so called "French paradox") and that many wineries are forced to label their wines as "containing sulfites" when the decision to use sulfites are normally not made till long after wine labels have been ordered and the finished wine may contain no sulfites at all.


International Policy Responses Relating to Wine Laws

2006 EU-US wine accord

– Oenological methods (oak chips)

– Geographic indications (GIs)

– Low alcohol wines (< 7%; e.g. ice wine from Germany)


2007 negotiations for a new EU-AUS wine agreement

– Mainly labeling and GIs


2007 Proposal for EU CMO Reform

– Discontinue intervention measures, i.e. distillation subsidies

– Subsidies for grubbing up of vines until 2013 (new plantings)

– Prohibition of chaptalization (adding sugar to increase alcohol)

– labeling (variety without origin)


Economic Rationales for Wine Regulations


Provide consumers with consistent, uniform and traditional product

• Raise demand through stable, quality, which allows region to claim appropriate price

• For example, variety or reverse osmosis restrictions may assure consumers a traditional product

• Demand shifts out and may be less elastic

• Consumers may benefit if the rules comport with their tastes


Restrict output to raise price


Differentiate the local wine from wine produced in other regions


• This aims at having a specific demand for a domestically produced product and

• To make the consumer value the local or regional producer

• Less effective when consumers do not recognize the regulation as creating a distinctive product

• Ex: “Oak is oak” and consumers may not value a barrel over chips


Favor traditional producers over local innovators

Regulations may have important impacts on producers, consumers and competitors.


An Overview of Wine Regulations of the New World countries

While New World countries do have wine regulations, they are much different than the regulations imposed upon their Old World Counterparts. Old World wineries must follow strict rules governing the types of grapes used in their wines and vineyard and winemaking practices. New World regulations are much more relaxed, and give the winemakers creative license for tailoring the wine in nearly any manner they choose. Below you will find a list of New World countries and a brief summary of their wine regulations.

Argentina:

Many producers have attempted to band together and define Argentina’s wine regulations without success. The only real regulation governs labels, where wines that carry a grape variety on their label must be made from at least 80% of that grape variety.

Australia:

Although nowhere near as strict as the French AOC, Australian wine regulations are enforced by the Australian Wine and Brandy Corporation, and include the following:

• When using a state, zone, region, or sub-region on a label, 85% of the wine must be from the stated place.
• If a grape variety is stated on the label, 85% of the wine must consist of that grape.
• If a vintage is stated on the label, 85% of the wine must come from that vintage.
• When blending grapes, if two or three grapes make up at least 85% of the wine, each of the grapes that make up 20% or more of the wine must be. If four or five grape varieties are used, and each makes up at least 5% of the wine, each of these grapes must be stated. Additionally, the grapes must be stated in the order of importance, such as Cabernet-Merlot when the wine contains more Cabernet Sauvignon than Merlot.

Canada:

Canada itself does not have many wine regulations. However, in order to increase the quality of Canadian wine, many of Canada's top producers banded together to create the Vintner’s Quality Alliance (VQA). This alliance enacted many regulations similar to the French AOC, such as defined appellation boundaries, accepted grape varietals, and vineyard and winemaking practices. VQA participation is voluntary, and Canadian producers that are members of this alliance may use the VQA seal on wine bottles after the wine has been tested and approved by the alliance’s governing body.


Chile:

In 1995, a joint association including the Servicio Agricola Ganadero, the Ministerio de Agricultura and Chilean wineries established Chile’s first set of wine regulations. They established boundaries for regions, sub-regions and appellations, as well as wine label regulations, which include:

• If a wine label carries the name of a place, such as a region, sub-region or appellation, 75% of the grapes must come from that place.
• When a wine label carries the name of a grape variety, the wine must be made from at least 75% of that grape variety.
• If a wine label carries a vintage, 75% of the wine must come from that vintage.


New Zealand:

New Zealand’s wine regulations are controlled by the New Zealand Food Safety Authority and include the following:

• If a wine label carries the name of a place, such as a region, sub-region or appellation, 75% of the grapes must come from that place.
• If two grapes are named on the label, the grapes must be stated in the order of importance, such as Cabernet-Merlot when the wine contains more Cabernet Sauvignon than Merlot.
• In New Zealand, when a wine label carries the name of a grape variety, the wine must be made from at least 75% of that grape variety. When the wine is exported to the EU or the United States and the wine label carries the name of a grape variety, the wine must be made from at least 85% of that grape variety.


South Africa:

In 1973, the Wine of Origin System was introduced and established boundaries for South Africa’s wine lands, which were divided into official regions, districts, wards and estates. South Africa’s wine regulations are defined by the South Africa Wine and Spirit Board, are enforced by South Africa Wine Industry Information and Systems (SAWIS), and include the following:

• A wine label can carry the designation of a Wine of Origin, which shows that the wine is one of the highest quality wines in South Africa. In order to carry this designation, 100% of the grapes must be from the defined appellation, 75% of the wine must be from the specified vintage and 75% of the wine (85% if exported to the EU) must be from the stated grape variety.
• If a wine label carries the name of a place, such as a region, sub-region or appellation, 75% of the grapes must come from that place.
• If two grapes are named on the label, the grapes must be stated in the order of importance, such as Cabernet-Merlot when the wine contains more Cabernet Sauvignon than Merlot.
• When a wine label carries the name of a grape variety, the wine must be made from at least 75% of that grape variety.



United States:

The Bureau of Alcohol, Tobacco and Firearms established American Viticultural Areas, or AVAs, to define growing regions distinguished by geographical and terroir features. Unlike the French AOC, American AVA laws only establish growing area boundaries and do not govern which varietals can be grown or vineyard and winemaking practices. U.S. wine regulations include the following:

• If a wine label carries the name of an AVA, 85% of the grapes must come from that AVA.
• If a wine label carries the name of a county, 75% of the grapes must come from that county.
• If a wine label carries the name of a state, 75% of the grapes must come from that state. Some states vary on this law, such as California, where 100% of the grapes must come from California to carry the state’s name on the label.
• When a wine label carries a vintage, 95% of the grapes must be grown during the stated year.
• When a wine label carries the name of a grape variety, the wine must be made from at least 75% of that grape variety.



An Overview of Wine Regulations of the Old World countries

Old World wineries must follow strict rules governing the types of grapes used in their wines, the area in which these grapes must be grown, as well as vineyard and winemaking practices. Old world wine regulations vary from country to country and appellation to appellation. However, in general, wines labeled with a specific appellation must:

• Be produced within, and contain grapes only grown within, the specified appellation.
• Use only permissible grape varieties and adhere to specified varietal amounts.
• Produce less than the specified maximum yield of grapes per hectare.
• Contain between the designated minimum and maximum alcohol percentage.
• Adhere to predetermined vineyard practices, winemaking practices and aging techniques.
• Pass chemical analysis and typicity tests.

Below you will find a list of Old World countries and a brief summary of their wine regulations:


Austria:

Austria’s wine laws are enforced by the Austrian Ministry of Agriculture, Forestry, Environment and Water Management and cover these designations:

• Prädikatswein (Wine with Special Attributes)
• Qualitätswein (Quality Wine)
• Tafelwein (Table Wine)

Prädikatswein wines are the highest quality Austrian wines and are produced from specific grapes grown in a selected region. The sugar content of the wines are measured according to the Klosterneuburger Mostwaage, which expresses the sugar content as a weight percentage. The wine is labeled accordingly with one of six degrees of ripeness. After scientific testing, each wine is given an official test number.

The six degrees of ripeness are as follows:

• Spätlese - Wines made from fully ripened grapes.
• Auslese - Rich and intense wines made from grapes harvested by selecting specific overripe bunches of grapes.
• Eiswein - Literally translated as "Ice Wine," grapes for these wines are left on the vines and picked in the winter when they are frozen. These grapes produce a sweet wine with extremely concentrated fruit characteristics.
• Beerenauslese - The producer chooses specific grapes affected by Botrytis cinerea to use for the production of these wines. Typically rich and sweet with a honey taste.
• Ausbruch - Made from overripe, medium-shriveled grapes affected by Botrytis cinerea. Ausbruch is the only specification not found within Germany’s Qualitätswein mit Prädikat.
• Trockenbeerenauslese - Intense, rich, sweet and rare, these wines are made from overripe grapes affected by Botrytis cinerea that have nearly shriveled to raisins.

Qualitätswein wines are light and simple wines derived from less-ripened grapes grown in a specific wine region. Sugar may be added to Qualitätswein wines to increase final alcohol levels. Kabinett wines fall under the qualitätswein category and are made from slightly ripe grapes, but sugar cannot be added to increase the wine's alcohol percentage. There are two types of tafelwein wines: landwein and tafelwein. Landwein wines are table wines that are made from officially designated grape varieties, while tafelwein wines are simply table wines.


France:

The National Institute of Appellations of Origin (INAO) created the Appellation d’Origine Contrôlée (AOC) system in 1935 to guarantee the origin of wine and other food products, such as cheese. The AOC was the first organization to define strict regulations for winemakers, and since then many other countries have used the AOC as a model for their own wine regulations. The following classifications are still governed by the INAO today:

• AOC - Vins d’Appellation d’Origine Contrôlée (Appellation of Controlled Origin)
• VDQS - Vin Délimités de Qualité Supérieure (Wines of Superior Quality)
• Vins de Pays (Country Wine)
• Vins de Table (Table Wine)

AOC wines are widely known as being the highest quality wines in France. VDQS wines come from AOC regions, but fall slightly beneath the quality level of AOC wines. Their grape yields are allowed to be higher than AOC regulations will allow and alcohol percentage may vary. Vins de Pays are wines grown outside AOC regions, where non-traditional varieties and higher yields are allowed. Vins de Table are basic table wines that do not need to claim appellations or varietals.

In addition to wine regulations, France has many Cru systems that define the quality of wines and wine producers in many of their appellations.


Germany:

Germany’s wine regulations cover these designations:

• QmP – Qualitätswein mit Prädikat (Quality Wine with Special Attributes)
• QbA – Qualitätswein bestimmter Anbaugebiete (Quality Wine from Specific Appellations)
• Deutscher Landwein (Superior Table Wine)
• Deutscher Tafelwein (Simple Table Wine)

QmP wines are the highest quality wines in Germany that are tested and assigned one of six levels of ripeness. All QmP wines must be made naturally and cannot have sugar added to increase the wine’s alcohol percentage. The six levels of ripeness are as follows:

• Kabinett - Dry, light bodied wines made from grapes picked during normal harvest time.
• Spätlese - Literally translated as "late harvest," these wines are made from fully ripened grapes. Typically off-dry, with a high-level of acidity and greater concentration than kabinett wines.
• Auslese - Literally translated as "selected harvest," these wines are made from grape bunches specifically chosen by the producer. Typically crisp and sweet with concentrated fruit charcteristics.
• Beerenauslese - The producer chooses specific grapes affected by Botrytis cinerea to use for the production of these wines. Typically rich and sweet with a honey taste.
• Eiswein - Literally translated as “Ice Wine,” grapes for these wines are left on the vines and picked in the winter when they are frozen. These grapes produce a sweet wine with extremely concentrated fruit characteristics.
• Trockenbeerenauslese - The most expensive, richest and sweetest German wines. Chosen grapes are affected with Botrytis cinerea and shriveled to raisin size.

QbA wines are basic, inexpensive wines made from slightly ripe grapes grown in one of Germany's 13 official winegrowing regions. Landwein wines are table wines that are made from officially designated grape varieties and are named after one of Germany's 19 Landwein regions. Tafwelwein wines are simple table wines made from officially designated grape varieties and are named after one of Germany's 5 broad Tafelwein regions.


Italy:

These classifications are currently overseen by the Italian Ministry of Agriculture and Forestry:

• DOCG – Denominazione di Origine Controllata e Garantita (Denomination of Controlled and Guaranteed Origin)
• DOC – Denominazione di Origine Controllata (Denomination of Controlled Origin)
• IGT – Indicazione Geografica Tipica (Typical Geographical Indication)
• Vini di tavola (table wines)

The DOC classification was instated in 1963 to create higher quality Italian wines that could compete with the French wines that were dominating the market. In the 1980's there were many problems with low quality wines and name manipulation, creating the need for a system that could guarantee higher quality standards. In 1992, the DOCG system was created, which included 21 appellations known as historically producing the highest quality wines in Italy. In order to prevent later manipulation, DOCG wine bottles are sealed with a numbered governmental seal across the cap or cork. Wines within both of these classifications must adhere to strict laws designed specifically for the appellation they are produced in.

The IGT designation was created to help distinguish regions making good wine that were not prestigious enough to fit into the DOC classifications. IGT wines are similar to the French Vins de Pays, and must adhere to laws similar to, but much less stringent than, the DOCG and DOC classifications. Vini di tavola have very loose guidelines that they must follow.


Portugal:

One classification is currently overseen by the Institute of Vines and Wines:

• DO – Denominação de Origem Controlada (Denomination of Controlled Origin)

There are currently 39 DO denominations. Each DO wine requires thorough testing and is given a certified test number which must be displayed on the bottle. DOs Porto and Madeira each have separate governing bodies and regulations. One important note is that when a grape variety is displayed on the wine label, the wine must be made from at least 85% of that grape variety.

Spain:

Two classifications are currently overseen by the National Institute of Denominations of Origin:

• DO – Denominación de Origen (Denomination of Origin)
• DOC – Denominación de Origen Calificada (Denomination of Qualified Origin)

DOC wines are considered to be of higher quality than DO wines. While there are currently 54 DO denominations, Rioja is currently the only DOC denomination. Each DO has a governing control board that enforces wine regulations and evaluates each wine to ensure that it is true to type.



Understanding the European Wine Regime

An Introduction

EC Regulations are published in the "L" series of the "Official Journal" as either “Council" or "Commission “regulations.

Council Regulations result from proposals by the European Commission, are approved by the Council of Ministers (the Agricultural Ministers of Member States), and give general instructions on particular subjects. Commission Regulations are compiled by the Commission through the medium of the Wine Management Committee (on which all Member States are represented) and provide the detailed instructions required to support Council Regulations.

Council Regulation 1493/1999

The outline of the system of control is laid down in Council Regulation 1493/99. The general rules fall under the headings: Production potential, including planting of vines; Oenological practices and processes, Description, Designation, Presentation and Protection; Market Mechanisms, including storage and distillation; Trade with Third Countries. The regulation also sets out the framework of labeling requirements for still and sparkling wines, semi sparkling wines and liqueur wines.

Commission Regulations

The general rules for specific aspects of the wine regime are notified as follows:-

Commission Regulation 1607/00 - Quality Wines

Commission Regulation 2729/00 - Controls in the Wine Sector

Council Regulation 2392/86 - Community Vineyard Register

Commission Regulation 1227/00 – Vines classification, production inventory

Commission Regulation 884/01 - Accompanying Documents and Records

Commission Regulation 1622/00 – Oenological practices

Commission Regulation 753/02 – Labeling



EC Information and Notices

These documents are published in the "C" series of "Official Journals", and are for information only. They include lists of quality wine specified regions and geographical designations for Table Wines, authorities in Member States, designated laboratories etc.



The CAP* (Wine) Regulations perform the following functions:-

They set out the Community Regulations under which prosecutions may be pursued and controls on movement of wine products imposed, and for which the various competent authorities have responsibilities for enforcement and execution; They specify the penalties that can be imposed on persons found guilty of offences; They list the various enforcement authorities and the scope of their responsibilities; They specify the powers of the "authorized officers".


*Common Agricultural Policy of EU



Note on recent changes in international wine regulations:

It should be noted that the European Union legislation was amended by Council Regulation (EC) No 2165/2005 of 2005. This regulation now permits the use of oak chips, dimethyl dicarbonate for microbiological stabilisation, plant proteins for clari?cation, and L-ascorbic acid addition to must. Additionally, South African Government Notice No R77 of 2006 now permits the addition of ammonium sulphate, argon, diammonium glycero phosphate, evaporated milk, gold ?akes, hydrogen peroxide, metatartaric acid, milk, phytates and potassium bicarbonate to wine, and the removal of water from wine using reverse osmosis.



Disclaimer

Every effort has been made to ensure the information in this manual is accurate. The Author does not accept any responsibility or liability whatsoever for any error of fact, omission, interpretation or opinion that may be present, however it may have occurred.

About the Author

Rajiv Seth is an Author and a wine educationist who has studied oenology for a very long spell of his life. He is an expert in international wine legislation especially European Union. Recently he has been appointed as the Chairman of Oenology committee set up by Indian Grape Processing Board.