June 11th, 2025: China-Cognac negotiations and other news
China-France negotiations on spirits seem to move, taxes exemption for small mezcal producers?, how to filter news, new DG for SpiritsEurope, Jamaican GI, whisky premiumisation effect and more
Good morning from Venice mainland, Italy.
Let’s start with Cognac today.
China and brandy, light at the end of the tunnel?
The Chinese media are reporting about new developments in the agreements to unblock the situation created by the anti-dumping investigations. You can read the news by Alexandre Abellan on Vitisphere this morning:
Fin du supplice chinois pour les cognacs et armagnacs essorés par les droits de douane?
Charente and Gascon producers remain cautious until nothing is signed, taxes are lifted and the access to duty-free gets restored.
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Mezcal and taxes
Parliamentary group propose to exempt small producers from production taxes
In a session of the Permanent Commission of the State Congress, Alejandro Mojica, representative of the PAN Parliamentary Group, presented an initiative seeking to exempt Durango’s artisanal and ancestral producers from the Special Tax on Production and Services (IEPS). The initiative is intended for those who produce less than 80,000 litres per year.
News by Sergio Mendoza on El Sol de la Laguna:
El GP-PAN propone exentar del IEPS a productores de mezcal artesanal
Just politics for the moment, but it may be interesting. We recently read something interesting about mezcal, I’m recalling May 16th press review here:
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Let’s talk about communication through media now.
News filtering tips
I’m taking a little time to go deeper into news comprehension. I’ll start with a negligible good news, then I’ll give you an in-depth analysis of a nonsense bad one.
Small-medium UK drinks manufacturer sales revenue rise in Q1 2025
The first quarter sales performance for small and medium sized UK drinks manufacturers show 64% more sales revenue than Q4 2024, and 1% more year-on-year. Article by Jessica Mason on The Drinks Business:
We are talking about drinks here, not spirits. But is this news?
The article sounds more like a candy to potential customers by the company who released this data. Are there any details? Not really.
So, here is a tip that I hope will be useful to you: always look for more detailed figures. Figures are never one-way, there are always good and bad sides. I usually look for more details to understand if figures are reliable and filter the news.
Let’s dive into the bad news example and talk about communication.
Alcohol consumption falls by 4.5% in Ireland, the DIGI calls for excise cut
Adults in Ireland consumed 4.49 litres of alcohol on average in 2024, down by 4.5% on 2023’s figure, and by 34.3% since 2001. For this reason the Drinks Industry Group of Ireland (DIGI) is calling for a 10% cut on excise.
You can read Rupert Hohwieler article on The Spirits Business here:
I’m afraid that drop was the purpose for being restrictive and the Irish government has never hidden that.
The real question is: how are people consuming alcohol?
DIGI’s statements are popping up on many online newspapers, which suggests me it may come from a press release, but I can’t find more detailed figures anywhere about how people drink.
What is happening here?
Data can easily be used for political and lobbying purposes and this is probably the case. To do that, you just need select the figures you need.
Don’t get me wrong, I’m not saying that DIGI is not right, I’m just trying to explain how communication works here.
First of all, I don’t think that playing on volumes helps. Look what I found here:
Surge in binge-drinking among Irish people, survey finds
(December 2024 news)
This is probably coming from another press review, you can find it on many newspapers.
What does this suggest you? Drink awareness is probably not enough and you can’t beat health concern with figures about volumes.
Education programs, engagement and culture are far better topics, in my opinion, and can help the industry’s communication better.
Then, please, do not suggest the rest of Europe they could raise their excise to the Irish level ;)
I’m done with the explanations for today.
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Talking about lobbying, some news about important positions:
Mark Titterington is the new director general of SpiritsEurope
SpiritsEurope is the association representing the European spirits producers and Titterington will take office starting from September 1st 2025. Read the news on Global Drinks Intel:
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Then, for those who are passionate about it,
The Brown-Forman saga
Here is a couple of updates from The Spirits Business:
(article by Nicola Carruthers)
(article by Georgie Collins)
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Let’s move to distillery news.
Suntory abandons Auchentoshan hydrogen project
The global drinks company cancelled its £60 million plan to build HyClyde hydrogen site beside the distillery, after failing to receive funding from the UK government. Many newspapers are reporting the news, you can read it here by Oli Dodd on Drinks International:
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Let’s stay on Drinks International to read something different.
How ageing matters for the Jamaican Rum GI
A feature by Eleanor Yates investigates on this topic, reporting opinions by some of the producers:
All of them see ageing in Jamaica as a necessary step for the rum to be called “Jamaican”.
They’re probably right in terms of product identity. But, as GI usually have a clear market purpose, I find a more pragmatic explanation in Alexander Kong’s point of view (he’s the commercial manager of Worthy Park Estate): «Ageing here means we deal with higher evaporation losses, which adds to our costs. If someone can buy unaged Jamaican rum and age it overseas where they lose less, they’re suddenly able to compete with us on our own rum, and at a cheaper price. That’s not a win for us. So keeping ageing in Jamaica as a requirement helps level the playing field and protect the integrity of what we’re doing here».
I know their point and I agree with it, I just keep asking myself, wouldn’t it be easier to mention everything clearly on the label? Is this question naive in some way? Please, help me understand.
(And, that sip of 2000 continental-aged Jamaican Rhapsody Rum by Samaroli is still stuck in my mind, sorry).
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Interesting readings
How whisky premiumisation is affecting consumers
This article was shared yesterday by a friend from France. It is by Christine Lambert on Whisky Magazine France:
I found it a clear-eyed (well written) reflection on how the premiumisation of whisky, combined with the rising cost of living, is discouraging its regular consumer base.
That reminds me of what Anthony Wills, founder and MD of Kilchoman, said last year, when I met him at the distillery. I’m pasting it here for you:
«You cannot survive we just connoisseurs. Some distilleries are thinking they can do, but you can’t, because they don't drink the damn stuff - laughs - They collect it. Connoisseurs are great and we love them all, and we have products that we can target with them, but you've got to balance. If you want to drive the business forward, you have to balance with volume and limited editions. And you never get that right. You might have to shift this way or that occasionally. Machir Bay is a little bit more expensive than some bigger brands and we want that to be the case - Kilchoman is the only family-run distillery on Islay and their entry level label is called Machir Bay - But we're getting into some national accounts and having some success with volume, because if you want to build the brand and continue to build the brand, it's your volume that's going to build that, not your connoisseurs».
This is also an excerpt from an interview by the colleague Giambattista Marchetto on Spirito Autoctono Magazine, which is not available anymore online.
I’m leaving you with this in mind today. I’m quite curious to know what you think about it.
Have a great day, I’ll see you on Friday!