August 22nd: EU spirits face US 15% tariffs and other news...
US tariffs on EU spirits are confirmed, DIAGEO's expansion in India, The Irishman Whiskey's move into Nigeria, distillery updates, and more...
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Hello everyone!
A new update on the US tariffs arrived yesterday afternoon, and it's not good news for the EU spirits and wine industry. There have been many immediate reactions across the markets, and we'll start with that today. But that's not the only story we have for you.
EU spirits and wines are included in US 15% tariffs plan
European wine and spirits will not be exempted from the US 15% import tariff agreed upon last month by Donald Trump and Ursula Von der Leyen in Scotland (you can re-read our 28th August press release if you need a refresher)
You can read the news by Jeanna Smialek, Tony Romm and Julie Creswell on The New York Times here:
No Tariff Exemption for European Wine and Spirits, at Least for Now
(I had no issue accessing the content, hope it’s the same for you)
The reaction across the Italian alcoholic beverage industry was immediate yet very cautious, with comments from both Nuccio Caffo, president of Consorzio Nazionale Grappa, and Lamberto Frescobaldi, president of Unione Italiana Vini.
Giambattista Marchetto reports on this topic for VinoNews24:
“Prendi l’Europa, trattala male”. E allora amerà i dazi USA al 15%
While I haven’t found any comment from the Irish Whiskey Association yet, French newspapers were quite quick to respond.
Here is Charente Libre’s report, which focuses on Cognac:
Droits de douane américains : fin des négociations, le cognac ne sera pas exempté
Marie Bartnik reports on Le Figaro, including a comment from Gabriel Picard, president of Fédération des exportateurs de vins et spiritueux français (FEVS):
A statement also came from the Distilled Spirits Council of the United States (DISCUS), which warned about the impact on the US distribution and hospitality system, as well as the risk of retaliatory tariffs being imposed by the EU. According to a DISCUS analysis, this move could result in an estimated retail sales loss of over $1 billion and more than 12,000 job losses.
Alternative moves
The Irishman Whiskey expands to Nigeria
Ireland-based Irishman Whiskey has made its debut in Nigeria with a launch event in Lagos, partnering with local distributor Ekulo International Limited.
You can read the news on the Nigerian newspaper This Day here:
Irish Whiskey Brand Expands to Nigeria’s Premium Spirits Market
DIAGEO India to build craft spirits hub in Goa
Diageo India’s latest project will feature a craft distillery, innovation lab and ‘immersive’ experience centre in Goa, positioning it as the world’s ‘largest’ destination dedicated to Indian craft spirits.
News by Lauren Bowes on The Spirits Business here:
DropWorks rum launches crowdfunding
UK-based rum distiller DropWorks starts crowdfunding on Crowdcube platform. “The world of premium spirits is changing fast and rum is next in line for a shake-up”, said the company, which aim is to build “a global, premium, rum brand”.
News by Dean Best on Just-Drinks:
Something to read
The story of Cape Fear Distillery
On The Bladen Journal, there is a long interview by Mark DeLap with the owner of the US-based Cape Fear Vineyard & Winery, Alexander Munroe II.
You don't often find such a long interview, and I can imagine there were no big cuts to the text. You may have heard many stories like this, about how a new company was founded, but I particularly liked the emotion this one conveys. This wasn't just a new company; it also became a new social hub for the local community. Isn't this the case for many young distilleries that are struggling at this moment? We talked about the "shrink for growth" strategy, but that isn't an option when you are so linked and committed to your family business and community.
As Alessandro Marzadro said to me a few months ago: “I do not create brands and sell them; my job is to keep a family brand going for another hundred years.” Same industry, different job.
You can find Cape Fear story here:
From the Crusades to how an Irish Setter discovered a winery
That’s all for today. I guess we can call it a week.
Have a great weekend and see you on Monday!