Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 600 - 619)

WEDNESDAY 21 MARCH 2007

MR ROBERT BEARDSMORE, MR ROBERT LINDO, MR MICHAEL ROBERTS AND MR OWEN ELIAS

  Q600  Viscount Brookeborough: The paper that we have here says that some maximum needs to be set on enrichment, that is the UK vineyards?

  Mr Beardsmore: I think the view that we take on this is where are we starting from. What we are supporting is the status quo, whether or not there should be some limit. Nobody would want wine that was made if half the alcohol came from sugar.

  Q601  Viscount Brookeborough: Would they know the difference?

  Mr Beardsmore: At some point it is going to affect the organoleptic characteristics. If you are putting in only sugar, it comes up with nothing except alcohol at the end of the day because it is fermented out. The point of what we were saying is that these sorts of levels, although they are acceptable, have been worked out over a number of years and the position at the moment—which we support—is that you are allowed to acidify, you are allowed to chaptalise within certain limits, and I do not think it is unreasonable, if you are going to have regulation at all, to have some upper limit on it. What they are now suggesting, and it seems quite arbitrarily, is to alter it in the one direction and not in the other. The one thing that I think everybody would agree is important is the quality of the wine at the end of it and what it tastes like, and in that respect both the south of Europe and the north of Europe need these measures. Of course, chaptalisation is done by huge areas of Europe, Bordeaux and Burgundy; you would not have it without them. What we are saying is that we support the status quo. This has been built on for a number of years as to what reasonable levels are and what they are doing at the moment is an arbitrary attack on one end of the climate spectrum.

  Q602  Viscount Brookeborough: When they are acidifying it, are they using a natural process?

  Mr Beardsmore: Acidification is usually done with tartaric acid, which is as natural as sugar. It is extracted, usually from grape must, it is the main source of tartaric acid.

  Q603  Chairman: It comes from grape must.

  Mr Beardsmore: I believe it is almost the only source of tartaric acid.

  Q604  Viscount Brookeborough: If you would like to see the subsidies go for the grape must especially, would you be happy to see that and therefore more sugar being used? What would be the effect on the overall market of not using grapes?

  Mr Beardsmore: Can I be clear? The price—

  Q605  Viscount Brookeborough: Yes, the price of sugar is cheaper; and, if there are no additional funds to support grape must, then more people would move to sugar. Would you be happy with that? And what would be the effect on the overall market with removing grape must from the market?

  Mr Beardsmore: I do not know, I do not have the figures as to how much grape must is used.

  Mr Elias: We have a limit at the moment of 3½% in most years and what the EU was proposing was that that would come down to 2½% and we do not necessarily think that is a good idea. What they were also talking about was taking sugar out of the chaptalisation process and replacing it with RCGM, or grape must. At the moment we do use RCGM and sugar but RCGM is six times more expensive than sugar. For example, at this harvest we used 18 tonnes of sugar for chaptalisation. It cost us £10,000; if we had done it with RCGM, it would have cost £52,000. That is the level of difference that you get. You do get a little bit more volume with RCGM, but that is the position at the moment.

  Q606  Lord Cameron of Dillington: That is an RCGM with subsidy?

  Mr Elias: I do not know, we pay more in England than they do in France, I am sure, apparently it is £2.50 a litre.

  Q607  Chairman: We had an interesting interchange with the Commission on this point and they fell back on an argument that the definition of wine was that it was a natural product of grape juice, full stop, and that did not include the definition sugar-added. So, if you want to sweeten it, you go back and use the must because you maintain the natural cycle. What is your answer to that?

  Mr Lindo: There is a difference between sweetening and enrichment. Which did you mean?

  Q608  Chairman: I meant enrichment, yes.

  Mr Lindo: All I can say is that it is called chaptalisation after a Frenchman called Henry Chaptal, who invented it and it has been traditional in France since wine-making began.

  Q609  Chairman: I am not arguing about that. I am arguing the Commission's point, that the definition of wine that they are working from is that it is a natural product made from grape juice.

  Mr Lindo: We will have to increase those grubbing up costs because not many of their areas do not reach it at the moment. You cannot define something that exists and change the definition of it.

  Q610  Chairman: They would then say that you can get the enrichment through must.

  Mr Beardsmore: There are two issues on enrichment. One is the issue of limiting how much you put in and the other one is whether you should use a grape must. From our perspective as an industry, it is quite clear to us which is the priority. We do not want them to start eating away at, again, another regulation as to whether you can add three and a half or two and a half or two or whatever. As regards rectified grape must or using grape must, there are some cost implications but they are very much secondary; and, whilst nobody asks for cost increases, it would not be the end of the world from the UK industry perspective. When we first met with the Commission back in June they used that same line of argument. They also said that chaptalisation, that is using sugar as opposed to using grape must, was not an authorised practice under the OIV. We have already said we are happy with the OIV as being the gatekeepers of what you can and cannot do. We eventually got through to the OIV to find out exactly what the rules were, and it was quite interesting to note that it is not an authorised practice to use sugar, so they have not put it on their list as authorised. But, when the message came back to us, we had a note from the OIV specifically saying, "We do not have a view on the use of sugar". It may not be authorised but neither was it unauthorised, and the email that came back was absolutely clear, "We do not take a view on the issue of chaptalising",—i.e. enriching with sugar as opposed to grape must. If we move towards the OIV, we might not have a problem with the European definition of wine.

Q611 Lord Cameron of Dillington: Because this is quite clearly a matter that is going to be pretty pertinent to the UK wine industry, have you made any efforts to get allies in other Member States? We know for a fact that Hungary is on your side, you just said that probably Northern France is; and Germany is. The Commission, though—it was the one thing they were really determined they were going to stamp out.

  Mr Beardsmore: There is bound to be a bit of a north-south divide for obvious reasons.

Q612 Lord Cameron of Dillington: I suggest that you do a bit of diplomatic negotiation.

  Mr Beardsmore: We were hoping it might go through under the German Presidency.

  Q613  Viscount Brookeborough: Why do you think acidification has not been addressed by the Commission? And who is behind the failure to address it?

  Mr Beardsmore: I think they have a perfectly reasonable argument that, in looking at surpluses, one of the things you can do with surplus grape must is use it as the source for enrichment. But it is a very isolated view that does not look at the most important issue in terms of the longevity of the European wine industry, which is the quality of the product that is being produced and whether there is a market for it.

  Q614  Chairman: It is something to help out the Mediterranean producers?

  Mr Beardsmore: You said it.

  Q615  Baroness Jones of Whitchurch: Can I ask you, is all of the wine that is produced commercially in the UK what you would describe as good quality?

  Mr Lindo: That is a very good question. We have a quality scheme and you can choose to join the quality scheme, which means that you can produce a quality wine which has been tasted and tested by a chemist. Then, if you pass that and you are eligible with a few other details, it gets labelled as English vineyard quality wine.

  Q616  Baroness Jones of Whitchurch: That is what you would look for on the bottle? You would look for English vineyard quality wine?

  Mr Lindo: Yes. We have a regional wine category, which has been manufactured to accommodate the grape varieties that the EU will not allow us to put forward for quality wines. It is nothing to do with the quality of the wine, it just that they are not eligible for the list of quality wine grapes that the EU allows us to use, so we have a regional wine. Now that has a lower alcohol content in it, for some unknown reason, but that is still tasty but it relies on a producer to provide an analysis certificate of what is in it, an independent one. The final thing is a thing called UK table wine, which has been avoided like the plague; it is something which has either failed all of those—

  Mr Elias: That is just rubbish.

  Baroness Jones of Whitchurch: Finish your point.

  Q617  Chairman: He has just realised he is in favour of distillation!

  Mr Lindo: What I am saying is that, because it has not passed a tasting test or independent analysis—by right it may have done, the chap may be competent—there is no proof, nobody has tasted it and said it is good, nobody has analysed it and said it is good. You cannot put the grape variety on, that is the main reason why, you are not even allowed to put the vintage on, so no vintage, no grape variety, no tasting and no analysis. Could I finish the rest of the answer perhaps, and then come back to that. If you want to look at the quality, then that is the quality echelon.

  Q618  Baroness Jones of Whitchurch: What percentage are in those roughly? I know you do not have a vast army of people collecting data, but how many are in that top quality?

  Mr Beardsmore: If I could give you one or two numbers, because we are the recognised industry body so we administer the schemes—actually I administer the schemes! At the moment I have got the production figures for 2005 in front of me, which is the latest one we have from Defra. Total wine production—it was a low year—12,800 hectolitres; and quality wine, 5,200 hectolitres roughly. The figure that I cannot give you is regional wine, because regional wine is classed as a table wine, but it is a table wine with Geographical Indication if you fit it into the regulation. All I would say is that we get more regional wines coming through the schemes, because we tend to do the tastings together. We get more applications for regional wine than quality wine, although, again, it does not tell you the volume of wine it relates to. We think the vast majority is going through one of the two schemes but they are not any actual figures for quality wine with GI.

  Q619  Baroness Jones of Whitchurch: Sorry, you have lost me a little bit here, so there are GIs in England?

  Mr Beardsmore: Yes, they are mostly county names at the regional level, or it is English vineyards or Welsh vineyards at the quality level.


 
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