PRESENTATION TO PORTFOLIO COMMITTEE

1
PRESENTATION TO PORTFOLIO COMMITTEE

• LIQUOR PRODUCTS AMENDMENT
• BILL

2
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
• .

3
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.

4
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• Repealed LIQUOR ACT 27 OF 1989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.

5
LIQUOR PRODUCTS AMENDMENT BILL

• WHY ARE WE AMENDING?
• Give effect to International obligations
• Amend composition of Board Members
• Production requirements for wine
• Traceability

6
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

7
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 SAs
  International Agreements

8
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

9
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

10
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

11
TRACEABILITY

• 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

12
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

13
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