PRESENTATION TO PORTFOLIO COMMITTEE LIQUOR PRODUCTS AMENDMENT BILL LIQUOR PRODUCTS AMENDMENT BILL

22 LIQUOR PRODUCTS ACT, 1989  Promulgated in 1989 and Implemented in 1990  OBJECTIVES:  Establishment of the Wine and Spirit Board  Sale and production of certain alcoholic products  Composition and properties of liquor products.

33 LIQUOR PRODUCTS ACT-CONTINUED  Labelling, Import and Export of all liquor products – except Beer and Medicine  Prohibits the use of false or misleading indications on liquor products  Establishments of Schemes  The Act does not regulate the distribution of liquor products- National Liquor Acts.

44 Liquor Act 59 of 2003  Repealed LIQUOR ACT 27 OF 1989  Came into operation on 13 August 2004  Responsibility –Department of trade and Industry.  Purpose- To provide for control over the sale of liquor and for matters connected therewith.

55 LIQUOR PRODUCTS AMENDMENT BILL WHY ARE WE AMENDING?  Give effect to International obligations  Amend composition of Board Members  Production requirements for wine  Traceability

66 Composition of board  8 members with knowledge, skills, or expertise in veticulture, oenology, distilling, regulatory environment of the liquor industry  3 officers of the Department nominated by the Minister  1 person from the ARC  1 person designated by Minister

77 INTERNATIONAL OBLIGATIONS  SA/EU Wine and Spirit Agreement  MAA (Mutual Acceptance) and Labelling Agreement of the WWTG (World Wine Trade Group) to facilitate trade in wine  Protection of geographical indications in terms of TRIPS (Agreement on Trade Related Intellectual Property Rights)  Proposed amendment- ensure that the importation of liquor products is subject to SA’s International Agreements

88 WINE & SPIRIT BOARD WINE & SPIRIT BOARD MEMBERS APPOINTED BY MINISTER ON NOMINATION  Act still refers to nomination by the Ko- operative Wijnbouwers Vereniging (KWV)  Cape Wine and Spirit Institute – speaks on behalf of producers and merchants  PROBLEM: Structural changes within the industry - No longer representative of all the participants in the Industry concerned

99 PRODUCTION REQUIREMENTS FOR WINE CURRENTLY – WINE GRAPES ONLY FROM VITIS VINIFERA  Internationally no longer a requirement  Villard blanc project in Northern Cape and Free State  Concept of low cost vine establishment and cultivation and fast cash flow to enable emerging farmers to easier access the wine industry on producer level

1010 PRODUCTION REQUIREMENTS FOR WINE – CONTINUED PROPOSED AMENDMENT – WINE GRAPES FROM GENUS VITIS  Harmonize with international legislation – currently practised in USA, Australia, New Zealand  Level the playing field

1111 TRACEABILITYTRACEABILITY  Legislative requirements imposed by EU for traceability on all agricultural products  Required to address food safety concerns and ensure quick recall of products Proposed amendment: Lot marking of receptacles/bottles/ containers to be made obligatory Gauging/marking of tanks

1212 PROCESSES TO DATE LP Bill published twice for comments Following bodies were consulted:  Wine and Spirit Board  South African Liquor Brand Owners Association (includes wholesalers like KWV, Distell, etc.)  Cooperative Winegrowers Association  WINETECH  Association for Cape Estate Owners  SAB  SA Wine Industry Council

1313 NEW PROCESS  Policy on liquor  Concerns from agriculture is food safety  Process will involve Agriculture, Health and the dti.  Policy to be finalized by end of the year How far should we go with regard to beer especially sorghum beer Do we include all fermented products?  Will consult broadly