Geographical Indications and spirit drinks in the EUgiseminar2019singapore.eu/pdf/Spirits/SGP Presentation No 8 Duthilleul.pdfImporters play a key role for introducing wines and spirits

Geographical

Indications and spirit

drinks in the EU

(the case of Cognac)

Amandine DuthilleulBUREAU NATIONAL

INTERPROFESSIONNEL DU COGNAC

July 16, 2019

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1 | DELIMITED AREA, EXPERTISE AND KNOW-HOW, DIVERSITY AND AUTHENTICITY

2 | ECONOMY OF THE BRANCH

3 | BNIC : “COLLECTIVE AND SUPPORTING ECONOMIC DEVELOPMENT OF COGNAC IN RESPECT OF THE APPELLATION”

4 | THE SUPERVISION OF COGNAC THROUGH THE CONTROL PLAN

5 | TOWARD A WORLDWIDE PROTECTION OF COGNAC

6 | MONITORING

7 | ENFORCEMENT

GEOGRAPHICAL INDICATIONS OF SPIRIT DRINKS IN THE EU

(THE CASE OF COGNAC)

Summary

July 16, 2019

1

DELIMITED AREA, EXPERTISE AND KNOW-HOW,

DIVERSITY AND AUTHENTICITY

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DELIMITED AREA, EXPERTISE AND KNOW-HOW, DIVERSITY AND AUTHENTICITY

One vineyard, multiple productions – data for all grape varieties (qualified or non qualified to produce Cognac)

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The largest white wine producing region in France producing wine spirit (75,000 hectares)

HISTORY

• Delimitation of the Cognac area in 1909

• Condition of production in 1936

• Specification product in 2015

SPECIAL PROCESS LINKED TO

• A terroir

• Specific production rules

• Thousands of men and women and their

know-how


The Cognac Product Specifications – Strict rules

July 16, 2019

1 | Production

A production area (delimited area)

The vineyard (grape varieties, rules of conduct)

Double distillation (méthode charentaise)

The ageing

➢ Without interruption, with french oak barrels

➢ 2 years minimum, in the delimited area for a direct human consumption

2 | Commercialisation

• Alcoholic strengh by volume ≥ 40% vol.

• Ageing mentions

➢ VS – 2 years minimum

➢ VSOP – 4 years minimum

➢ NAPOLEON – 6 years minimum

➢ XO – 10 years minimum

➢ XXO – 14 years minimum


Around 5000 members

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4 255Vintners and

home distillers

277TRADE

HOUSES

114PROFESSIONAL

DISTILLERS

60 000PERSONS LIVING OFF COGNAC

July 16, 2019

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ECONOMY OF THE BRANCH

July 16, 2019


• Strong economy: 204, 2 millions of bottles shipped in 2018, for a value of

3,2 billions euros from Cognac,

• Export oriented: 98% export,

• Non relocatable : 17 000 direct employees, 60 000 persons living off the

product in France and millions€ of investments,

• Symbol of French excellency for very high added value foodstuffs,

• Brings strong image of French art de vivre, symbol of French excellence, the

terroir and authenticity

July 16, 2019


Growing markets

Far east

60,9*

USMCA

89,8* Far east

60,9*

USMCA : Canada, United-States of America, Mexico

Far East : south Korea, Hong Kong, Malaysia, Singapore, Taiwan, Thailand, China, Japan.

Europe : European continent

July 16, 2019


Top 10 direct shipment countries for year 2018

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Shipments evolution to Singapore

July 16, 2019

Volume in Pure alcohol


Singapore in Cognac’s world market

July 16, 2019

• In 2018, Singapore was the second country, ranked in terms of direct exports of Cognac worldwide

- Singapore represented 13,3% of Cognac worlwide market and 27,2 millions bottles

• As of today, Singapore mainly functions as a hub for re-export of Cognac to China, Viet Nam and other South-

East Asian countries.

• As concerns Singapore’s market for Cognac, it is a modern and multicultural, with a strong role of the expat

community and an annual growth forecast of 3% for the upcoming five years.


Important re-export from Singapore

July 16, 2019

• The free-port status gives to Singapore a major hub role for Cognac re-export.

• The applicable market access regime is – in broad terms – favourable to Cognac trade. Several documents

shall accompany Cognac exports to Singapore such as the analysis certificate.

• To ensure and to pursue high traceability objectives, the Cognac Bureau continues to issue « Cognac

certificate », certifying age and origin for exports of Cognac to Singapore, even though this document is

not mandatory as of today.


Singapore’ wine and spirit market

July 16, 2019

• Singapore imports 100% of the spirits consumed (whisky remains the most consumed spirits in Singapore with 31% of

volume sales in 2017).

• Estimated consumption level of spirits per capita : 0,8 l / person / year (wines : 1,9 l / person/ year).

• France is the leading supplier of wines and spirits in value (57% of the total value of imports) and the second ranked

country in terms of volume (33% of the total volume).

➢ In terms of French exports, Cognac dominates (63% of the total value of wines and spirits and 56% of the total

volume of wines and spirits).

➢ Importers play a key role for introducing wines and spirits on the local market, even if they are more and more in

competition with mass retail and cellar masters importing directly.

➢ The HORECA sector (hotel, restaurant, café) represents 95% of the spirits consumption in value.


Access to Singapore’ market

July 16, 2019

➢ Clear and non-binding regulation : liquor license (authority : custom department), no quota.

➢ No custom duty for spirits

➢ GST (VAT equivalent ) : 7% (expected to reach 9% between 2021 /2025)

➢ Excise tax : high specifix tax rate : 88 SGD / LAP ( around 5700 € / Hl of pure alcohol)

In comparison, excise tax in France is 1758 €/ Hl of pure alcohol

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BNIC: « COLLECTIVE AND SUPPORTING

ECONOMIC DEVELOPMENT OF COGNAC IN

RESPECT OF THE APPELLATION »

July 16, 2019

BNIC : KEY MISSIONS

Cornerstone of the branch

Interbranch Missions 1946/1989

• Understanding, defending, and promoting the appellation

• Structural organisation of production and meeting market

demands

• Facilitating access to markets

• Implementing a research and development policy

• Downstream quality control

PUBLIC SERVICE MISSIONS - 1946

On behalf of French Customs (DGDDI)

• Monitoring movements of Cognac

• Keeping track of the age of Cognac

• Issuing certificates for Cognac

DMB Missions – 2010

• Defending and managing the Cognac A.O.C.

• Verifying adherence to specifications for the

Cognac A.O.C.

• Carrying out a control plan

July 16, 2019

BNIC : NETWORK

Within a dense network

Viticulture (agriculture) & spirits (industry)

National, European and International levels

Public

Establishments

Authorities

BNIC

Political

sphere

Professional

Partners

Industry

Organisations

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THE SUPERVISION OF COGNAC THROUGH

THE CONTROL PLAN

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Control from administration

THE SUPERVISION OF COGNAC THROUGH THE CONTROL PLAN

Implementation of controls

Self control Operators Sampling BNICControl BNIC

BNIC’s public service mission BNIC’s ODG missions BNIC‘s Interbranch mission(SAQ)

Control BNICODG controlCognac

certificates BNIC

Control

by the

Certifying body

CERTIPAQ

July 16, 2019

BNIC’s defense and management body mission (ODG)


Monitoring and supervising operators of Cognac branch

CONTROL Before products are

marketed

ProductProduct

specifications

Documentary

ODG’s mission since

2010, sole interbranch of

the wine-producing sector

with this competence

July 16, 2019

This control includes a verification of the label/presentation.

BNIC’s interbranch mission: downstream control (SAQ)



CONTROL After products

are marketed

Label Product Analyses of

common interestSAQ’s mission

(interbranch agreement)

by virtue of interbranch

missions of BNIC.

July 16, 2019

This control includes a verification of the label/presentation.



BNIC’s public service mission

CONTROL Stocks

Shipments

Whatever

the destination

Ageing Cognac certificates

delivered when

shipments

to 3rd countries

Public service mission

since 1946 by delegation

French Customs and

excises (DGDDI)

(French Order of 27th

of July 2003)

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Cognac certificate

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TOWARD A WORLDWIDE

PROTECTION OF COGNAC

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TOWARD A WORLDWIDE PROTECTION OF COGNAC

Threats for the GI Cognac

Reference to Cognac in a product name can be a strong added-value for people that misuse the GI

in order to take profit of Cognac’s fame

• Real need to ensure consumers’ safety by protecting genuine products and fighting counterfeits:

- Public safety risks; blending with unsafe products could lead to human poisoning

- Misleading risk

• Certain risk for the Cognac industry:

- Economic risk

- Image risk; there’s a threat for the Appellation fame and its value in consumers’ mind.

July 16, 2019


How does BNIC ensure the protection of the GI Cognac?

4- COOPERATION

2- FIGHT AGAINST

GENERICITY

5- SHARE INFORMATION

3- ENFORCEMENT

OF THE PROTECTION

More than 250

ongoing files

Fight against:

• Counterfeits

• Misleading trademarks

• Misappropriation of

the reputation

1- GI REGISTRATIONRegistered in more than

40

countries

Necessary collaboration with international

control administrations

Strong international cooperation

in terms of technical knowledge

BNIC is in charge of

the Round Robin

circuit

July 16, 2019

TOWARD A WORLDWIDE PROTECTION OF COGNACStrong Legal basis – High protection level

• WTO (TRIPS)

• WIPO (Lisbon Agreement)

• Bilateral agreements EU/Third-countries,

• Direct registrations in countries allowing it.

GI protected by Regulation (EU) 2019/787

(spirit drinks)

Regulation (EU) n° 608/2013(Customs enforcement of IP rights)

Appellation d’Origine Contrôlée (AOC)

Decree n° 2015-10 dated January 7, 2015

(amended by the Decree 8th November 2018

controlled by the Defense and

Management Body French Ministry of

Agriculture and French Frauds

AOC protected by the French intellectual

property code, agricultural code and

consumption code

July 16, 2019


1909 1936 1989

2000

2002

2011

2013

Cognac

Delimited

area

(France)

Cognac 1st

Product

Specification

(France)

EEC

China

(AQSIQ)

India

Malaysia

Georgia

Moldova

2013

Ukraine,

Burma

Colombia

Peru

Panama

2015

Cognac’ Current

Product

Specification

(Decree n°

2015-10 of

January 7, 2015)

1967

Lisbon

Agreement

(WIPO)

2009

Brazil

Vietnam

Thailand

2018Coming

soon 1970

USA New-

Zealand

Singapore

Cambodia

Indonesia

Australia

Turkey

AIPO

…

1996

TRIPS

(WTO)

July 16, 2019

Direct registrations of Cognac GI

1999

Swiss

Every spirit drink exported from EU must comply with the rules stated in the Regulation (EU) 2019/787:

- No translation of the GI Cognac on the EU market, except for export when required by the country of exportation

and if “Cognac” appears both in French and in the language of this country (Cyrillic, Chinese, Japanese…)

- No reference to the GI Cognac – in French or translation – in the presentation of a product not meeting the definition

of the GI: labelling, administrative and commercial accompanying documents

- No parasitism, no exploitation of the reputation

- No registration of a TM which contains or consists of a GI for any other products than Cognac wine spirit

July 16, 2019

TOWARD A WORLDWIDE PROTECTION OF COGNACEuropean Level (Regulation 2019/787) – A strong protection tool

Registration of “Cognac” - sine qua non condition for protection.

July 16, 2019

Free Trade Agreement between SINGAPORE & EU signed in 2018 (entry into force soon)

Should facilitate the Registration and Protection of the GI “Cognac”

TOWARD A WORLDWIDE PROTECTION OF COGNACGI Cognac Protection in Singapore

CONTROL ABROAD6

MONITORING

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MONITORING

How it is conducted

Market Supervision :

• Regular market survey with assistance of local lawyers

• Awarness of BNIC’s members to alert about any doubt/suspected product

• Internet survey conducted by BNIC internal team

Trademark monitoring

Worldwild computer survey of TM applications

Trainings

• Authorities (customs, police…)

• Fair organizers

July 16, 2019

MONITORING

How it is conducted – In practice

The 100th China Food & Drinks Fair – Chengdu (21-24th March 2019)

Observations :

- Good and increasing collaboration with organizers and authorities

Training : Organizers & Local Authorities Surveys : Main & Parallel exhibitions

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ENFORCEMENT

July 16, 2019

ENFORCEMENT

3

Collaboration with Cognac

Houses/INAO (national

institute of origin & quality)

= Joint action

If necessary with the

support of local authorities

and French Embassy

2

Analyses of product by

station viticole or

Collaboration with well-

known local laboratory

for analysis

1

Market SuProducts

Detection Surveys

= Suspect

BNIC action against infringing products

July 16, 2019

The 100th China Food & Drinks Fair – Chengdu (21-24th March 2019) : Successful Collaboration with Chinese Authorities

July 16, 2019

5 complaints – 5 raids onsite

Effective implementation of the Cognac GI

protection

ENFORCEMENT

Concrete Cases

THANK YOUR FOR YOUR ATTENTION

July 16, 2019

Amandine DUTHILLEUL

Responsible for the Department Protection of the GI Cognac

+33 (0)5 45 35 60 56 / M. +33 (0)6 33 61 15 74

Email : [email protected]

Thank you!Questions and Answers

Documents

Geographical Indications and spirit drinks in the EUgiseminar2019singapore.eu/pdf/Spirits/SGP Presentation No 8 Duthilleul.pdfImporters play a key role for introducing wines and spirits