1. WORKSHOP ON LABELING OF WINES IN ACCORDANCE WITH THE NEW EU STANDARDS PORT WINE AN EXAMPLE OF A PDO ALBERTO RIBEIRO DE ALMEIDA, Ph.D. DOURO AND PORT WINE INSTITUTE (IVDP) BELGRADE, SERBIA 30 JANUARY 2013

2. INTRODUCTION Portuguese institutional wine organization –private and public sphere. The Douro and Port Wine Institute (structure and functions) – the specificity of the Douro Demarcated Region. Appellations of origin versus geographical indications. Legal status – the territoriality principle and other restrictions. Port wine protection: national and international.

3. PORTUGUESE INSTITUTIONAL WINE ORGANIZATION–PRIVATE AND PUBLIC SPHERE Ministry for Agriculture, Sea, Environment and Spatial Planning. Douro and Port Wine Institute (IVDP). Madeira Wine Institute (IVBAM). Vine and Wine Institute (IVV). Interprofissional Vitiviniculture Commissions (CVR). Public, interprofissional and private control.

4. NATIONAL ORGANIZATION 1. Vine and Wine Institute (IVV) – Public authority: a) Coordination, regulation and control. For example: vine control and audit powers over certification bodies. b) International representation (EU) in cooperation with certification bodies. c) Execute European programs for the wine sector in cooperation with certification bodies (promotion). 2. Certification bodies: a) IVDP – Public authority – accredited by the EN 45011 (new rule: ISO/IEC 17065:2012). b) CVR – Private body. c) IVBAM – Public authority.

5. PDO PGI DO/DOC VINHO REGIONAL

6. PORT WINE SALES

7. DOURO WINE SALES

8. THE IVDP (STRUCTURE AND FUNCTIONS) – THE SPECIFICITY OF THE DDR Wine and Vine Policy Protection Promotion Market regulation Certification Control Regulations (production; labeling; brandy; traditional expressions; quality, including ageing, method of production, vinification and bottling, etc.); Physical and chemical analysis (a accredited laboratory); Organoleptic analysis (special regulation; accredited tasting chamber); Local and physical controls (made everyday by 6 teams); Penalties (specially fines, besides criminal measures).

9. THE IVDP (STRUCTURE AND FUNCTIONS) Examples of instruments of control: Not all the areas inside the Douro Region can produce Port wine. And even those that can produce Port wine, not all of them can produce the same quantity – there is a classification. In fact, of the entire amount of land under vines, only 31.423 ha are authorized for Port Wine. The vines that are considered appropriate for this wine are selected according to a criteria of quality based on a Scoring Method. “Production authorization” – each producer receives a document classifying his parcel.

10. THE IVDP (STRUCTURE AND FUNCTIONS)

11. Classification of parcels: A >1200 B between 1001 and 1200 points C between 801 and 1000 points D between 601 and 800 points E between 401 and 600 points F between 201 and 400 points

12. THE DOURO REGION Scoring method of the plots Factors and minimum and maximum score Location -50 to 600 Altitude -900 to 240 Slope 1 to 101 Bedrock -400 to 100 Gross elements 0 to 80 Exposure -30 to 100 Shelter 0 to 60 Income -900 to 120 Vine -300 to 420 Planting density -50 to 50 Driving system -500 to 100 Age 0 to 60 Classification of plots: A > 1200 points B 1001 to1200 points C 801 to1000 points D 601 to 800 points E 401 to 600 points F 201 to 400 points ha Total area of the region250,000 Vineyard Area (ha)45,215 Potential area for DOs38,931 DO Porto Area (A-F)31,423 Total of winegrowers34,814

13. THE IVDP (STRUCTURE AND FUNCTIONS) Quantity of Port that maybe produced The quantity of Port wine to be produced is distributed among the above referred parcels taking into account the classification of each parcel. Quality mechanism. It is important to have mechanisms to control quantity and quality (proposals at Brussels – EFOW). Quality reserve and yield per hectare (Champagne case).

14. THE IVDP (STRUCTURE AND FUNCTIONS) All the producers and traders must be registered. With the Harvest and Production Declaration (DCP) the “Current account” is opened. Control of the yield per hectare. Minimum quantity of Port wine stored. Control of the quantity and the quality. Any displacement must be communicated. Physical and chemical analysis; organoleptic test. The Port wine is registered according to its category (a Vintage, a Late Bottled Vintage, a Harvest Port, etc.). The Douro also (Reserve; “Quinta”, etc.).

15. THE IVDP (STRUCTURE AND FUNCTIONS) In the Port wine sector all the wine must be bottled inside the region. It is not allowed to cross the line of the Douro region or the restricted area of Vila Nova de Gaia with any wines – in bulk – from outside. Inside the Douro region and the restricted area of Vila Nova the Gaia we can only find wines that are produced in the Douro region.

16. THE IVDP (STRUCTURE AND FUNCTIONS) Physical and chemical analysis; organoleptic test: Control by the laboratory (certified); Control by the tasting chamber (certified): Independent and objective (criteria). Possible appeal to a Interprofissional Chamber. We keep a registration of the wine that was approved. Control of the quantity and the quality: Physical controls at the parcels, wineries and cellars: Samples are collected from the wine still in bulk or during the bottling process. At the market place: We buy Port and Douro wines all around the world.

17. Samples Expedition Control and validation documents of transport Registration FDO / FDO_SAQ Others Tasting Chamber Laboratory Result D.S.T. Bulletin Code Finish Decodification Archive and Prove Registry Contas-correntes Result. Control of Quality certificate Result. Control of Quality certificate Quality ServicesTechnical services

18. THE IVDP (STRUCTURE AND FUNCTIONS) All the labels must be previously approved (stricter rules). All the wines must have a guarantee seal. The shipper is not allowed to sell all the quantity of Port wine that it has in its cellars - quantity of Port wine that may be traded (“Lei do Terço”): Quality function; If a Port wine shipper wants to wind up the Port wine business, the IVDP will establish some rules in order to avoid the market instability. All of these mechanisms guarantee the quality and the prestige of the appellation of origin.

19. PDO AND PGI – INDUSTRIAL PROPERTY RIGHTS

20. APPELLATIONS OF ORIGIN AND GEOGRAPHICAL INDICATIONS Wine appellations of origin and geographical indications in Portugal: DOP, DO, DOC; IGP, “regional wine”. Wines without geographical indication or appellation of origin. Industrial Property Code. Wine law. New CMO: PDO and PGI.

21. APPELLATIONS OF ORIGIN VERSUS GEOGRAPHICAL INDICATIONS Main elements: Demarcation: origin and region; Specifications: quality and characteristics; Control: certification and guarantee. Differences: Link with the region; The production process. Trademarks and certification marks. Port Appellation of origin. Douro Appellation of origin. Duriense Vinho regional – wine with a geographical indication.

22. DOURO WINES Port Appellation of origin White Reserve Colheita Aged Ruby Reserve Crusted Late Bottled Vintage or LBV Vintage Tawny Reserve Colheita Aged (10, 20, 30, 40 years old) Rosé

23. DOURO WINES Douro Appellation of origin Still wines Late harvest Reserve / Special reserve / Grande reserva Grande escolha Colheita / Colheita seleccionada Moscatel Reserve / Colheita / Aged (10, 20, 30, 40 years old) Sparkling Reserve / Super-reserve (extra-reserve) / Old reserve (grande reserva) /Cuvée Colheita /Colheita selecionada / Millesime Duriense Vinho regional – Wine with a geographical indication Still wine and sparkling

24. LEGAL STATUS – THE TERRITORIALITY PRINCIPLE AND OTHER RESTRICTIONS National protection – very strong. European Law – strong. International status: Bilateral agreements; Multilateral agreements (Paris, Madrid, Lisbon and TRIPs). Port examples – the pirates. It is not loyal and is seriously damaging the Port wine appellation of origin. Great Wall of China

25. PIRATES, IMITATORS AND... OTHERS Pirates: Californian Port (and others in the USA); Russia Argentina Imitators: “Puertopablo” “Puerto Casal” “Porte Noir” “Porte d’Or” “Puerto Alegro” “Portly Ruby” Brazil, Peru, India. Parasites: “Port Truffles”; “Pâté au Porto”, etc.

26. PIRATES, IMITATORS AND... OTHERS

27. NATIONAL PROTECTION - WINE SECTOR RULES AND INDUSTRIAL PROPERTY CODE High level of protection usurpations, imitations, evocations any false or misleading indication cannot become generic prestigious appellations of origin traditional expressions unfair competition National authorities and sanctions judiciary authority : prison sentence or a penal sum civil measures and civil responsibility administrative authority: penalty (a fine) customs authorities: seizure measures

28. INTERNATIONAL PROTECTION Bilateral agreements : Concluded by Portugal Celebrated by the European Union South Africa, Canada, Chile “phasing-out” USA “The maintenance of past sins” and no phasing-out Australia Homonymous: “Port Phillip” Registration systems: India, Brazil, Peru, Colombia, Central America. Map of Pangaea

29. INTERNATIONAL PROTECTION Multilateral agreements: Paris Convention (1883) Very weak protection Madrid agreement for the repression of false or deceptive indications of source on goods (1891) Wine appellations of origin cannot become generic Lisbon agreement for the protection of appellations of origin and their international registration (1958) Strong protection TRIPs agreement Unbalance agreement “The maintenance of past sins”

30. NEW CMO High level of protection: PDO and PGI Registration system Protection: Any direct or indirect commercial use Comparable products or exploitation of reputation Misuse, imitation or evocation Any other false or misleading indication Any other practice liable to mislead the consumer Cannot become generic Critics: Relationship with trademarks Homonymous

31. CONCLUSION Appellations of origin and geographical indications Demarcated Region Specifications Certification and control body (independent and objective) Quality function (consumer protection) Appellations of origin and geographical indications are Intellectual Property Rights (communal property) Copyright, patents, trademarks… Same level of protection Differences? Why?