July 16th, 2025: EU countermeasures and other news
EU’s countermeasures, the US strategy, Irish health labelling, Diageo and Tequila, reusing distillery waste, Morelos Mezcal, Chinese market and more…
Hello everyone!
We’ve got a packed agenda today, let’s begin with tariffs updates.
Eu prepares countermeasures amid US tariff escalation (and Bourbon is included)
Here is today's update on the ongoing US-EU trade dispute. The EU has released a list of potential countermeasures, which include Bourbon and wine from the US.
Article by Fiona Holland on Just Drinks:
If you’d like to delve deeper into the tariffs situation, I highly recommend this comprehensive article by Eugenia Perozo on Just Drinks, which provides a clear overview of the US negotiation strategy:
Irish health labelling for alcohol products to be postponed to 2029
Next week, the Irish government is expected to make a decision on deferring the introduction of additional labelling information for alcoholic beverages. This includes proposed warnings similar to those found on cigarette packets, highlighting cancer risk. The original plan was put forward in 2023 and was due to become active in May 2026.
Morelos Mezcal to formally enter the designation of origin
Next week the Mexican government will receive the official document for the recognition of Morelos Mezcal. This will formally include it in the Denominación de Origen.
Article by M. Garcia on Diario de Morelos:
You can find more information about Morelos Mezcal in 30th June press review and in 7th July press review.
Diageo responds to Tequila lawsuit
Diageo has dismissed the class action lawsuit filed against it in the US as “baseless”.
The company argues that the complaint, lodged in May by consumers Avi Pusateri and Chaim Mishulovin, along with New York restaurant Sushi Tokyo, “fails to allege a single fact” supporting the assertion that their Casamigos and Don Julio brands are not made entirely from agave.
Article by Henry Mathieu on Global Drinks Intel:
Diageo attacks ‘baseless’ tequila authenticity lawsuit in US
Distillery news
Brothers Wright buy Dueling Barrels
Kentucky-based Dueling Barrels Brewery & Distillery has been acquired by Brothers Wright Distilling Co. The deal also includes Pearse’s Place restaurant, the welcome centre, and the tasting room in downtown Pikeville.
News by Melita Kiely on The Spirits business:
Innovation
Buffalo Trace to convert post-distillation waste into proteins
Sazerac Co is set to build a byproduct conversion facility near its Buffalo Trace distillery in Kentucky, in collaboration with US-based Meridian Biotech. The investment, worth US$40m, is expected to create more than 30 jobs.
Article by Henry Mathieu on Global Drinks Intel:
Sazerac Co partners with biotech company for Buffalo Trace by-products conversion
Something to read
Eyes on the Chinese market
Today I had the chance to discuss Scotch brands sales to China with one of Italy’s most important spirits importers.
As you probably know, many brands are allocating a considerable amount of their premium bottles to the Chinese market in pursuit of higher profits.
I believe the Cognac situation should teach how dangerous it can be to target a single market so heavily. Many of those exporting super-premium whisky to China should have already sensed a slowdown last year, and I know some bottles were even reallocated. However, this isn’t easy if other markets are no longer accustomed to absorbing your products; they might have already filled the gap in your absence.
What’s more, local production is attracting significant investments. Our Monday press review have mentioned the Fujian-based Nine Rivers Distillery firing up its pot stills and planning to increase production (you can refresh your memory with our 14th July press review here).
I believe it is well worth keeping a close eye on what is happening in this market, which is why I am suggesting this feature by Clinton Cawood on The Spirits Business:
This article comes from the May 2025 issue of The Spirits Business magazine and was just reposted on their website, not actually fresh, but still very relevant.
I hope you enjoy the reading, and please, do let me know your point of view on the Chinese market.
That’s all for today.
See you on Friday! ;)