EXPORTING NEW WHISKEY, EU IS THIRSTY MARKET

[Ralph at Tuthilltown]

Just off conference call with representatives of the Federal and New York state international Trade offices on the topic of petitioning the EU to amend its alcohol law to recognize "AMERICAN WHISKEY" as a class of spirits unique to the US made under US law. This change is only asking for quid pro quo with Scotch and Irish whiskies and other recognized national products such as tequila and cognac.

The general conclusion of the discussion was that this is worth pursuing in the interests of opening a wider market for new small US spirits producers in the EU which is very thirsty for NEW American spirits.

The opinion of the US Trade Representative office was that this would take substantial lobbying among the American micro distillers with their State Federal elected officials, the TTB and the USTR; supported by pressure in the EU exerted by non-Scotch and non-Irish whiskey makers in the EU who are not exempt from the US Standards.

The lever in the EU will be the pressure of EU distilleries for EU action and the prospect of expansion of the specific exemptions for Scotland and Ireland so that all EU micro distillers making legal spirits in their countries should be recognized as legitimate and outside our Standards of Identity as foreign products.

Of course this will mean participation among US micro distillers in the effort. Your products are eagerly awaited in the EU. We have been very successful bringing our whiskeys to the EU, the response to which is unanimously "Finally, something new."

So it's up to you. Contact your State's international trade office, the TTB and the US International Trade Representative offices and express your interest in export of your products to the EU as AMERICAN WHISKEY. This will take time. But that market if lucrative, and extremely limited in its selection of American spirits.

Please express your opinion, preferably in support of this effort. I will forward the posts to the appropriate office as demonstration of the support by the growing number of American craft distillers for a more open EU market for their goods.

[Ralph at Tuthilltown]

The US TRADE REPRESENTATIVE ("USTR") office announced there will be public hearings on the issue of the artificial trade barrier against American whiskeys in EU law on May 29th and 30th in Washington DC. I will be going to testify on behalf of American Craft producers. You can make your comments on line for the record. The announcement of the Public Comment period and details are at the site: http://www.gpo.gov/fdsys/pkg/FR-2013-04-01/pdf/2013-07430.pdf.

[cbenoit]

Ralph, the hearing isn't about whiskey or for any business in particular, it's a notice & comment period for all interested persons to comment on the proposed US-EU free trade agreement- the "Transatlantic Trade and Investment Partnership" (TTIP).

ADI will be submitting a letter after feedback from members, similar to the one the organization submitted for the Trans-Pacific Partnership (TPP) negotiations: http://goo.gl/dYb9i

That letter goes into the issue a bit, and how it can be resolved.

[Ralph at Tuthilltown]

The meeting, indeed, is not about whiskey. It is however about the issues to be dealt with in the TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP agreement. We have been invited to offer comments from the craft distilling industry with regards to considerations in that agreement pertaining top artificial trade barriers and such. R

[nabtastic]

Ralph,

How'd it go? Good responses or shutdown?

Noah

[Ralph at Tuthilltown]

Sorry for not posting sooner. This meeting went well. It's not possible to predict the outcome of the trade talks. We've been only discouraged by all industry persons who comment on the effort. And the Euros we speak to decline to involve themselves, wishing not to wake the sleeping SWA's ire. There is a quid pro quo for the EU which makes a recognition of American Whiskey desirable for all the non-Scotland, non-Irish producers. If the EU does move to recognize American Whiskey it is more likely there would be reciprocation in the form of a broadening of the recognition by the US of ALL European made whisky and a subsequent elimination of the "new oak rule" in American law which as applied currently keeps all Euro whisky not aged in new oak out of the US market. Is the EU considering the entire Union by not finding a way into the American market for the non-Scottish, non-Irish Malt Whiskies, or considering only the proprietary position enjoyed by Irish and Scotch whisky makers in the US market? I guess we'll see. The encouraging note is that the US Trade Representative is taking the issue seriously and continuing to press the point.

[tl5612]

Nothing wrong with dropping the word Whiskey. I see that Hudson already does that in the UK. And if you can keep the word Bourbon then that's great!

British micros have the same problem with the 3 year rule. But an informed consumer / spirits enthusiast (most likely the target market for a very expensive American craft whiskey) can see past the labelling. Being familiar with the regulations.

American craft whiskey is indeed in short supply in the UK. And the brave micros that make the jump over the pond, and drop the word whiskey, probably have the potential to quite well.

[nabtastic]

tl5612 - that is brilliant. So simple, honestly I'm a little embarrassed I hadn't thought of doing that already. touche'