Wine Labelling: An Australian perspective

1. Wine Labelling: An Australian perspective Presentation to AIDV Tony Battaglene

2. Recent developments in Australia Nutrition labeling Health warning labels

3. Nutrition labeling FSANZ started work on a Proposal for Nutrition, Health and Related Claims in December 2003. This proposal is the vehicle by which FSANZ is developing a Standard (Standard 1.2.7) and management system for the regulation of nutrition, health and related claims.

4. Process to date • In August 2004, FSANZ released the first of two consultation documents, an Initial Assessment Report, for public comment, and in November 2005 released the second consultation document - the Draft Assessment Report. • FSANZ received 147 submissions in response to the Initial Assessment and 131 written submissions in response to the Draft Assessment Report.

5. Draft standard • Currently, Standard 1.1A.2 – Transitional Standard for Health Claims prohibits health claims on foods that are standardised in Part 2.7 of the Code (Alcoholic Beverages). • The draft Standard has incorporated this with the prohibition of general and high level health claims on foods containing more than 1.15% alcohol and only permitting nutrient content claims relating to alcohol, energy and carbohydrate on foods containing more than 1.15% alcohol.

6. Definitions • general level health claim means a health claim that does not, directly or indirectly, refer to a serious disease or a biomarker. • health claim means a claim that directly or indirectly refers to a relationship between – (a) food; or (b) a property of the food, and a health effect, but does not include an endorsement, dietary information or a cause-related marketing statement • high level health claim means a health claim that directly or indirectly refers to a serious disease or a biomarker.

7. Draft standard • General level and high level health claims would be prohibited on foods containing alcohol. This decision took into consideration the Ministerial Council policy guidance which states that consideration should be given to excluding certain categories of food, such as alcohol, from content and health claims and making any exclusions explicit in the standard. Currently the Code permits nutrition content claims on foods containing alcohol, and these claims are regulated as for any other food. • Beer is not permitted to be fortified with vitamins or minerals, but may have added herbs.

8. Draft standard • Alcoholic beverages standardised in Standards 2.7.2 to 2.7.5 of the Code (beer, fruit wine, vegetable wine, wine and wine products, and sprits) are currently exempt from the requirement to label with a nutrition information panel, except where a nutrition claim is made

9. Draft standard • At present, alcohol labelling is regulated under Standard 2.7.1 – Labelling of Alcoholic Beverages and Food Containing Alcohol. This Standard requires a statement of alcohol content on packaged beverages with more than 0.5% alcohol by volume. • The Standard prohibits ‘low alcohol’ claims when the alcohol content of the beverage is more than 1.15% alcohol by volume.

10. Draft standard • For foods containing more than 1.15% alcohol by volume, permit nutrition content claims in relation to alcohol, energy and carbohydrate content, permit voluntary nutrition information panels, and require a nutrition information panel if a nutrition content claim about energy or carbohydrate is made.

11. Draft standard • Nutrition content claims about substances other than energy, alcohol and carbohydrate not be permitted on foods containing more than 1.15% alcohol by volume, to avoid a proliferation of claims that may confuse public health messages regarding consumption of alcohol. • A variety of nutrition content claims and health claims would still be permitted on foods containing low levels of alcohol and this would provide industry with opportunity to develop innovative products.

12. Draft standard • Criteria for carbohydrate claims would not be prescribed because there are no relevant national guidelines or criteria for reduction in carbohydrate intake. • In all cases, claims still have to conform to fair trading requirements that require claims to not mislead consumers.

13. Pregnancy health advisory labels on alcoholic beverages • The Alcohol Advisory Council of New Zealand has asked Food Standards Australia New Zealand (FSANZ) to amend the Australia New Zealand Food Standards Code  to require a health advisory label on alcoholic beverage containers advising of the risks of consuming alcohol when planning to become pregnant and during pregnancy. • FSANZ released the Initial Assessment Report for ‘Labelling of Alcoholic Beverages with a Pregnancy Health Advisory Label’ on 12 December 2007 for a 8-week public consultation period finishing on 6 February 2008. This report is a discussion paper only and does not make any recommendations. It explains how the application will be progressed, provides some background information and asks for responses to questions and information requests.

14. What is the attitude of the Australian and New Zealand Governments to drinking while pregnant? • Currently the Australian Alcohol Guidelines (2001) state that women who are pregnant or might soon become pregnant may consider not drinking at all, but if they choose to drink should have less than seven standard drinks over a week and no more than two standard drinks on any one day. • The National Health and Medical Research Council (NHMRC) on 13 October 2007, the NHMRC issued revised draft guidelines, titled Australian alcohol guidelines for low-risk drinking, for public consultation (see www.nhmrc.gov.au ). The draft guideline for women who are pregnant, are planning a pregnancy or are breastfeeding is: ‘Not drinking is the safest option’. FSANZ will consider the revised guidelines during the assessment of this Application.

16. APEC Initiative • AT SCSC2 held on 25 - 26 June 2007 the Chair of the industry sector of the World Wine Trade Group (WWTG) presented a report on its work. • There are currently no standards for wine makers developed by CODEX or other internationally recognized bodies. • Development of principles/guidelines that can be considered when Member Economies are making regulatory change in the areas of wine labelling and oenological practices could be a valuable contribution to APEC efforts on trade facilitation, in particular to meeting the challenge posed by Ministers in Ha Noi, Vietnam, to reduce trade transaction costs by another 5% by 2010. • It was agreed that Australia would seek discussion by member economies with their industries and look to provide a paper to be endorsed by economies at SCSC I 2008 in Peru.

17. Consultation • Australia received a significant number of responses from Member Economies on this issue. • The majority of responses were strongly supportive of the initiative, and a number of very useful suggestions were made on the steps forward. • Key suggestions: • As APEC activity is based on non-binding principles, there is no need to discuss the adoption by APEC as a whole at this stage. • A better approach would be for economies which have an interest in better regulation of wine and facilitating trade in wine could form an expert group to share experiences and examine opportunities for cooperation and capacity building in this field.

18. Way forward • A Wine Regulatory Forum was established to enable interested Member Economies to further this initiative (draft Terms of Reference are attached). • It was recognised that many of the delegates at the SCSC do not have responsibility for regulation of wine in their Economies, so a first step would be for each member economy to provide contact details of the appropriate regulators in their jurisdictions.

19. Wine Regulatory Forum • On receipt of contact details the Wine Regulatory Forum would be convened to commence dialogue and exchange ideas on wine regulation. • These experts would share experiences and knowledge, in particular in relation to involvement and obligations with the various relevant international fora, including inter alia, the Codex Alimentarius Commission, World Trade Organisation (WTO), International Organisation of Wine and the Vine (OIV), and the World Wine Trade Group (WWTG). • This consultation would also look at the benefits for APEC Economies and the APEC region, in particular the benefits to consumers by improving consumer protection through better wine regulation, without forming a barrier to trade. A key thrust of these consultations would be to provide capacity building in the area of wine regulation. • This group could then bring forward a project proposal for Trade & Investment Liberalization & Facilitation (TILF) funding to be considered inter-sessionally. This would enable the holding of training workshops in 2009 for wine regulators.

20. TERMS OF REFERENCE • Goal • To examine options to simplify and harmonise wine regulation across the APEC region, reduce technical barriers to trade and protect consumers. • To share information and build capacity in wine regulation across the APEC region. • Communications and Administrative Arrangements • Contact details of wine regulation focal points to be provided by member economies to the Australian contact point by the end of 14 March 2008 • The Wine Regulatory Forum will report to SCSC via presentation and/or written statements tabled at SCSC plenary. • The work of the Wine Regulatory Forum will, wherever possible, be carried out via electronic communications.

21. TERMS OF REFERENCE (2) • Modalities for Cooperation • Establishment of a Wine Regulatory Forum, under the auspices of SCSC, to undertake a stock take on existing wine regulations and recommend action on future cooperation and harmonisation opportunities. • The Wine Regulatory Forum initially to be chaired by Australia and include representatives from all interested APEC economies. • The Food Safety Forum has a strong relationship with the intended activities of the Wine Regulatory Forum ( in particular the sub-theme: Legal and technical drafting to support the development of food laws and regulations harmonized with international standards). The Wine Regulatory Forum should seek to consult with and coordinate with the activities of the Food Safety Forum to facilitate the best use of capacity building activities and ensure maximum efficiency of time and resources between both Forums.  • Participation from domestic and regional wine regulatory agencies is encouraged. • The Wine Regulatory Forum will place high priority on an examination of capacity building needs in the region. It will also consider the potential benefits of running capacity building training workshops in the field of wine regulation with the support Trade & Investment Liberalization & Facilitation (TILF) funding.

22. Other SCSC activities • This activity has a strong relationship with the Food Safety Forum. The Food Safety Forum has produced a strategic approach for SPS activities that has four key strands, including one on Food safety regulatory systems, with a sub-theme: Legal and technical drafting to support the development of food laws and regulations harmonized with international standards. This activity, which links the wine industry engagement with food regulators fits within that strand. • Australia sees this activity as a model case study for capacity building with a view to regulatory alignment, where you have an industry that is keen to foster trade, and governments keen to protect consumers, rather than use regulation as a form of protectionism. • It is also recommended that experts from this forum present at the 6th Conference on Good Regulatory Practice and/or 8th Conference on Standards and Conformance and report back to SCSC2 on the adoption of principles/guidelines for labelling principles and oenological practices as well as further developments in the WWTG..

23. Recommendations • That the SCSC: • Endorse the establishment of a Wine Regulatory Forum (WRF); • Note the relationship with the Food Safety Forum in particular the sub-theme: Legal and technical drafting to support the development of food laws and regulations harmonized with international standards. • Agree that interested member economies provide to Australia contact details of the appropriate regulators in their jurisdictions to participate in the WRF by 14 March 2008; • Endorse the proposed Terms of Reference for the WRF. • Agree that a representative from the WRF be invited to present at the 6th Conference on Good Regulatory Practice and/or the 8th Conference on Standards and Conformance on the work of the WRF in relation to wine labelling principles, oenological practices as well as further developments in the WWTG.

24. THANK YOU – Tony Battaglene tony@wfa.org.au