Wine Reform Consultation
The Government has been carrying out wholesale reform of the wine market to seek to improve economic conditions and remove red tape in this sector.
The first two phases of the assimilated EU law (AEUL) wine reforms have been undertaken:
- ‘The Wine (Revocation and Consequential Provision) Regulations 2023 (No 1362)’, introduced simplified labelling rules for the wine trade which came into effect on 1 January 2024. In addition, packaging requirements for sparkling wine were liberalised to reduce costs and support recycling and the removal of restrictions on hybrid grape varieties will give industry the freedom to innovate.
- ‘The Wine (Amendment) (England) Regulations 2024 (No 115)’, will update the list of approved oenological practices and introduce a definition for ice wine in July 2024.
This consultation Wine Reforms Consultation - Defra - Citizen Space is intended to gather views on further specific elements and is to end 10 May 2024.
- Transformation of wine (including carbonation).
This is intended to create business opportunities for the bottling and re-exporting industry. That could take the form of increased foreign direct investment (especially for in-market carbonation) and potential spill-over benefits on the manufacturing sector (increasing demand, employment, R&D and innovation).
Additionally, importing wine in bulk as compared to shipping packaged (bottled) wine may have significant environmental benefits. Bulk wine containers enable more than double the volume of wine to be shipped per container compared to the finished bottle, which means that businesses can transport two and a half times more wine for the same transportation costs. As well as reducing emissions, shipping consolidation will help to reduce pressure on the supply chain.
There may however be costs of investment and familiarisation. Also, the potential risk to domestic industry. Mitigations such as adjusting labelling provisions applicable to wine that is carbonated here have been included to make sure that consumers can clearly see what they are buying.
Another area of potential growth is the proposed reforms to the definition of wine to allow for the production of no and low alcohol “wine”. The no and low “wine” share of the total wine category stood at 0.9% in 2022.
Corporate Sustainability Due Diligence Directive CSDDD passed by EU Parliament
On 24 April 2024, the European Parliament voted with a majority in favour of the Corporate Sustainability Due Diligence Directive. Please see Food Navigator article at which Jessica Burt, Judith Houston and Alex Woolgar of Mills & Reeve LLP are quoted at: How will the CSDDD be implemented in EU member states? (foodnavigator.com)
The Corporate Sustainability Due Diligence Directive (CSDDD), or ‘CS3D,’ is an EU directive that will require in-scope EU and non-EU companies to set up due diligence processes to identify adverse human rights and environment impacts that arise in their own operations and those across all tiers of their supply chain. In addition, the CSDDD establishes a duty on organisations to develop a plan to align their business strategy with the goal of limiting global warming to 1.5 degrees Celsius, in accordance with the Paris Agreement.
The requirements of the CSDDD will still apply to large EU companies but also to large non-EU companies with significant turnover in the EU. SMEs are not caught directly but may be affected indirectly as part of the value chain of an in-scope company.
The Directive will apply to companies meeting the following criteria:
- EU Companies with more than 1,000 employees and a net worldwide turnover of more than EUR 450 million
- Non-EU Companies with more than 1,000 employees and a turnover generated in the EU of more than EUR 450 million
The CSDDD will be implemented in stages, with companies having different timelines to comply based on their size and turnover.
- Companies with over 5,000 employees and a turnover of EUR 1.5 billion will need to comply three years after the directive takes effect
- Companies with over 3,000 employees and a turnover of EUR 900 million turnover will have four years to comply
- Companies with over 1,000 employees and a turnover of EUR 450 million turnover will have five years to prepare before the directive applies to them
The CSDDD is designed to work alongside the Corporate Sustainability Reporting Directive (CSRD) that was implemented 5 January 2023 and establishes sustainability-related reporting guidelines with a focus on transparency and disclosure. The CSRD revised the 2014 Non-Financial Reporting Directive (NFRD), extended the scope of covered companies much more extensively than the CSDDD, and strengthened the reporting requirements for them most notably to include double materiality. Non-EU companies (including EU subsidiaries of a UK parent) that operate in the EU may also fall under the CSRD scope, regardless of whether they're listed or not.
Bird Flu in Cattle in US
The bird flu virus, known as Type A H5N1, has been detected in nearly three dozen dairy herds in eight states in America. The strain has been circulating in wild birds for decades and has shown up in other species but this is the first detection in ruminants.
So far the U.S. Department of Agriculture (USDA) has confirmed that there are 12 infected dairy cattle herds in Texas, four in Kansas, eight in New Mexico, six in Michigan, two in Idaho and one each in Colorado, North Carolina, Ohio and South Dakota. Cases in birds in New York City parks and green spaces have also been confirmed by Icahn School of Medicine at Mount Sinai researchers.
Inactive viral remnants have been found in grocery store milk. The strain was discovered in about 1 in 5 samples of grocery store milk, further Food and Drug Administration (FDA) testing has confirmed that the virus was inactivated by pasteurization, a sterilizing process used on more than 99% of the commercial milk supply. The U.S. Department of Agriculture also tested ground beef for bird flu, and all the samples came back negative. But raw, unpasteurized milk — which health officials warn against in general — may not be safe
Tests also show the virus is spreading between cows, including those that don't show symptoms, and between cows and birds, according to the US Department of Agriculture (USDA). On 24th April, the USDA issued a federal order telling dairy farms to test any cattle being moved across state lines for bird flu. The agency had previously told farmers to test any cattle with symptoms and throw out milk from infected cows. The USDA is also introducing the testing of ground beef from states with infected herds, since some dairy cattle are slaughtered and used to make beef, the agency said in an 29th April statement.
Scientists confirmed the virus in cows in March after weeks of reports from dairy farms that the animals were falling ill. Symptoms included lethargy, sharply reduced milk supply and changes to the milk, which became thick and yellow.
Dairy farm workers have been advised to consider extra precautions, such as masking, hand washing and changing work clothes.
One infected person is recorded, a dairy worker who contracted bird flu in Texas, where the virus has been spreading among cattle. The worker tested positive after developing pink eye, which was their only symptom, according to a New England Journal of Medicine (NEJM) report published on 3rd May. It’s only the second-ever human case of bird flu in the U.S.; the first was a poultry farmworker who was infected in 2022 while culling infected birds and recovered after experiencing only mild fatigue.
The most likely short term outcome will be logistics and supply chain issues and cost for food businesses supplied from affected areas. On 15th April, Colombia became the first country to restrict the importation of beef and beef products from U.S. states with infected herds.
Bird Flu in UK – New Measures to Register
New measures have been set out by the UK government as of 19 March 2024. Under the changes announced there will be new requirements for all bird keepers - regardless of the size of their flock - to officially register their birds. This has been only a requirement where 50 or more poultry were kept. New measures to help protect poultry industry from bird flu - GOV.UK (www.gov.uk)
By registering their birds, keepers will ensure they receive important updates relevant to them, such as on any local avian disease outbreaks and information on biosecurity rules to help protect their flocks.
In England and Wales keepers are encouraged to register their birds ahead of the legal deadline on 1 October 2024. In Scotland, keepers should register from 1 September 2024 when there will be a new Scottish Kept Bird Register in place.
The new rules cover owners of backyard flocks, birds of prey and pigeon fanciers, but do not affect caged pet birds (excluding any poultry species) kept entirely inside a domestic dwelling, such as a parrot, canary or budgie, which never leaves the property other than to visit a vet or another short-term period.
Bluetongue in Cattle in UK
In an updated qualitative risk assessment, APHA confirm there is a very high probability of a new introduction of bluetongue virus serotype 3 (BTV-3) into livestock in Great Britain through infected biting midges being blown over from northern Europe. Biting midges are most active between April and November and the timing of a potential incursion will depend on the temperature and wind patterns.
Farmers should continue to be vigilant and monitor their animals frequently, whilst making sure their livestock and land is registered with APHA and that their contact details are updated so animals can be located in the event of an outbreak. More advice can be found on gov.uk.
The impacts on susceptible animals can vary greatly depending on the species of animal and the strain of bluetongue virus – some show no symptoms while for others it can cause productivity issues such as reduced milk yield or, in the most severe cases, it can be fatal for infected animals.
Last November, APHA and The Pirbright Institute identified the first case of the disease in Great Britain through the annual bluetongue surveillance programme. Since then, there have been 126 bluetongue cases confirmed in England across 73 premises in 4 counties, with the last case confirmed on the 8 March 2024. All cases confirmed to date have been detected through active surveillance, with the animals likely infected in late autumn.
Due to their proximity to areas in Northern Europe, where BTV-3 is actively being transmitted by the biting midge population and wind patterns, counties along the south and east coasts of England, including Norfolk, Suffolk, Essex, Kent, and Sussex, are considered most likely to be impacted.
Control of the disease is likely to include the declaration of bluetongue disease Control Zones surrounding premises where infection is confirmed to restrict the long-distance movement of susceptible animals and germinal products potentially spreading disease. Moves to slaughter will be allowed. Once bluetongue is known to be circulating in the domestic midge population, culling of livestock is not an effective control measure to deal with disease.
APHA has also enhanced the licensing application system for moving animals between disease control zones in the event of an outbreak to make it faster and more convenient for keepers to make licence applications.
All bluetongue virus testing for suspect cases is undertaken at the UK’s bluetongue virus National Reference Laboratory (NRL) at The Pirbright Institute. To support farmers to take preventative action, the government will offer free bluetongue tests to keepers in high-risk counties once the risk of bluetongue virus transmission increases. Defra and APHA will provide further details on this in due course.
The UK government is actively monitoring the situation and has been working closely with a wide range of stakeholders to review the bluetongue virus control strategy.
The overall risk of importing livestock infected with BTV into GB is considered to be very low. Rules on the movement of livestock from regions affected by bluetongue are already in place and farmers are reminded that animals imported from these regions must be accompanied by the relevant paperwork to clearly show they meet certain conditions designed to reduce disease risk.
BTV is a notifiable disease. Suspicion of BTV in animals must be reported to the Animal and Plant Health Agency on 03000 200 301 in England, on 03003 038 268 in Wales and to the local Field Services Office in Scotland.
More information about bluetongue is available on gov.uk.
Precautionary Measures – Have a Crisis Plan
A crisis of any kind be it via a virus, a contamination or pollution, bacteria, chemical or even radiation may have domestic, European or global repercussions for production, customers and supply chains. Latest legal publications | Mills & Reeve | Mills & Reeve (mills-reeve.com)
Precautionary and planning measures that should be considered are as follows:
- A full Hazard Analysis Critical Control Point (HACCP) plan should incorporate all major risks and seek to protect against them at vulnerable points within the supply, processing and distribution chain. This should be kept regularly updated to ensure that specific risks are reviewed and that protections and precautions, as far as possible and practical, are included and procedures updated accordingly.
- A company should have a detailed and up to date crisis management plan, listing key decision makers, experts and responsibilities. This should be regularly reviewed/tested and any recommendations implemented.
- The crisis management plan should be linked to a business continuity plan. Are there alternative supply locations for key ingredients? Alternative production facilities?
- Check withdraw/recall insurance policies and terms.
- Check contractual terms of supply and distribution agreements.
- Health and safety legislation obliges employers to provide a safe as reasonably practicable environment for staff and visitors; suitable risk assessments for employees and other persons affected by the work activities should be carried out and all reasonable precautionary measures implemented.
- Keep alert for hazards, particularly high risk scenarios and symptoms and be ready to respond according to your assessment of the risk ie, with bird flu poultry keepers are advised to watch for signs of disease, and maintain high levels of biosecurity at all times. If there are any concerns about the health of the poultry, seek prompt advice from veterinary experts.
- Keep abreast of new developments – legal, scientific and medical that may affect your product / assist you in protecting against risks and so protecting your customers, consumers and employees and ultimately your business/brand.
- Ensure best welfare conditions for animals.
- Follow government guidance and industry best practice.
Legislation, guidance and best practice
Guidance and best practice can be constantly evolving in a crisis. Also the different legislative requirements for different products and labelling. Farmers and food producers at all stages along the supply chain should ensure they are aware of the legislation and guidance that affects their business and check this regularly. Where supplies are affected it is important that, where necessary, changes to marketing are made and appropriately communicated.
As in any crisis, the priority of food safety and quality as well health and safety and the welfare of animals should be maintained.
Is Salt the New Spicy?
The House of Lords Diet and Obesity Committee session on Food, Diet and Obesity on 18 April 2024. The evidence session set out to explore the role of food such as ultra-processed foods and foods high in fat, salt and sugar in a healthy diet and in tackling obesity
Takeaways were highlighted by the British Retail Consortium in relation to salt targets in particular and the disparity in regulations for foods high in fat, salt and sugar (HFSS) displayed and promoted in-store versus the display of information and promotion of products by takeaway restaurants.
Lidl removes ‘Strathvale Farm’ from webpages
Lidl has now removed the out of date references on it’s webpages.
In March 2016 Tesco, launched a controversial budget range of seven own-label “farm” brands – including Woodside Farms and Boswell Farms for fruit and veg as well as meat. Other retailer farm ranges were highlighted in the media including Asda’s ‘Farm Stores’, which features an old - fashioned barn and tractor on the label, Lidl’s ‘Birchwood Farm’ meat range (which was marketed as ‘Strathvale Farm’ in Scotland), Aldi’s ‘Ashfield Farm’ and Marks and Spencer’s ‘Oakham’ chicken. It was alleged these names implied local and smaller scale sourcing which was misleading as some of the foods were imported from overseas.
This is a reminder that when labelling changes take place it is recommended that food businesses do a wholesale check of their marketing.
The issue came to prominence once again with the recent ‘fairer food labelling’ consultation Consultation on fairer food labelling - Defra - Citizen Space that includes suggestions for guidelines on origin labelling. Please see Fairer Food? But for who? A Consultation on Labelling - Mills & Reeve (mills-reeve.com)
October 2027: Deposit Return Scheme (DRS) launch
Deposit Return Schemes across the UK are stated to become operational in October 2027.
The schemes will introduce a deposit on single-use drinks containers, which is refunded upon return of the container. The deposit provides a financial incentive for consumers to return drinks containers for recycling and is expected to boost recycling levels
The scheme will mean deposits are applied to in scope drinks containers, which can be redeemed upon return of the container for recycling. There will be three legally distinct deposit return schemes in the UK: one in England and Northern Ireland; one in Wales; and one in Scotland. Deposit Return Scheme for drinks containers: joint policy statement - GOV.UK (www.gov.uk)
There is an outstanding issue regarding the scope of materials in DRS. The Department of Agriculture, Environment and Rural Affairs (DAERA) in Northern Ireland, the Scottish Government and the UK Government agree that polyethylene terephthalate (PET) plastic bottles, steel and aluminium cans will be included in DRS, and that glass drink containers will be excluded when the scheme launches. The Welsh Government are taking a different approach: they intend to include glass when their scheme launches.
Glass is considered different due to the difficulties in safely handling returned bottles, it is stated to be littered less and the fact that glass drink containers will be in scope of the Extended Producer Responsibility for packaging (pEPR), whereby producers will be charged fees for the management of this packaging once it becomes waste from April 2025.
The responsibility for waste and recycling is a devolved competence in the UK.
The UK Government has stated they do not consider that there is sufficient justification for granting a UK Internal Market Act 2020 (UKIM) exclusion for glass in any UK DRS now that there is maximum possible alignment and interoperability across the UK to protect businesses and consumers. In plain terms, this means that drinks in glass containers made or imported into England, Scotland and Northern Ireland will not be subject to a Welsh DRS which includes glass. However, any application for an exclusion from the Welsh Government would be considered on the evidence presented.
Retailers and drinks suppliers have been reported as threatening to reduce the number of products they supply to Wales if the country continues with plans to include glass in its deposit return scheme.
It was considered that launching a DRS in October 2025 was a ‘stretching target date’ (Deposit Return Scheme for drinks containers: joint policy statement - GOV.UK (www.gov.uk)) and additional time will be needed to efficiently and effectively roll out the schemes across the UK.
Andrew Opie, Director of Food and Sustainability at the BRC, has been quoted on this topic:
“We welcome the Government’s clarity around the timeline of a future Deposit Return Scheme (DRS). Retailers will need at least 24 months to implement a multi-billion pound DRS scheme, and the government must now engage closely with the industry to ensure all details are fully ironed out ahead of the proposed 2027 start date.”
The next step is taking forward legislation to bring the schemes into existence across the UK, and amending the existing Deposit and Return Scheme for Scotland Regulations 2020
Extended Producer Responsibility (EPR)
A notification of the draft UK Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 has been sent to the EU and World Trade Organisation. Notification of the draft Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 sent to the EU and WTO | Campaign Monitor (createsend.com)
This applies to all four administrations of the UK. The full draft Regulations are available for stakeholders to view here. The full WTO notification pages can be found here
EPR legislation will be brought before the UK Parliament later this year, with the aim of it coming into force by 1 January 2025.
Producers will be required to report the amount of packaging they place on the market. This reporting will then be used to charge producers fees and pay local authorities (LA) for managing packaging waste.
Producers will begin accruing fees for the management of their packaging, once it becomes household packaging waste from April 2025, with fee modulation being introduced from 2026. All recyclability labelling obligations will now come into force on a single date, the 1 April 2027.
A provision has been included which ensures that if a Deposit Return Scheme has not been established by 01 January 2028, producers of drinks containers made of PET plastic, aluminum and steel will be subject to the full range of packaging EPR obligations until a DRS is operational for this material.
CBD – possible movement in authorisations?
The Association for the Cannabinoid Industry (ACI) criticised the FSA in April 2024 for having “wholly failed to comply” with its legal obligation to validate novel food applications.
Only half (6,431) of the products on the CBD public list have had their statuses updated to ‘validated’ (meaning their sale is tolerated but they are not ‘fully authorised’ for sale), with the remainder of the 12,115 products currently described as ‘awaiting evidence’.
Businesses wishing to sell CBD products in the UK were required to submit applications to the FSA for authorisation no later than 26 May 2022. Currently no brand can bring new CBD products and formulations to market.
Timelines for novel food authorisation set out by EU regulation and retained in UK law state the relevant food safety authority – in this case, the FSA – has nine months from receiving an application to adopt a position, and a further seven months from validation to authorise “placing on the market”. In its own guidance the FSA states the overall legislative timeline for authorisation can run to “a total of 17 months”. This timeline can be extended “in exceptional circumstances… where the nature of the matter in question justifies an appropriate extension”.
The FSA announced week commencing 29th April two CBD brands, Pureis and Cannaray would have their novel food applications progressed from the risk assessment phase to the risk management stage, after concluding that the CBD products were safe when consumed in line with its new consumer advice of up to 10mg per day. Confusion continues for the CBD Market - Mills & Reeve (mills-reeve.com)
The two applications will now face further scrutiny of “other legitimate factors” that could pose a risk to consumers, including the labelling of products linked to them. They will then be sent for ministerial approval to await full authorisation for sale. The FSA is yet to offer any indication of when brands and consumers can expect full authorisation.
However, this does provide an indication there may be some movement within the FSA’s authorisation process for CBD and potential other novel foods.
Regulatory authorisation Process Review
The regulatory authorisation process is also currently under review via a consultation available at: Consultation on proposed reforms to the regulated products authorisation process | Food Standards Agency
This is because the authorisation regime is the main sticking point for bringing novel foods to market and capitalising on the UK government’s priority of investing in research and development in the food sector. The consultation has intended to streamline the authorisation process for regulated products.
Regulated products are food and feed products which require authorisation before they can be sold. These include food additives, flavourings, novel foods, GMOs as food and feed, food contact materials and feed additives.
The proposal to allow regulated product authorisations to come into effect on publication, likely to an official register, following a ministerial decision will mean, if implemented, these proposals would significantly speed up the process of bringing regulated products to market in the UK.
Responses to this consultation should be submitted by 5 June 2024.
More information about longer-term reform plans will be presented to the FSA and FSS Boards in June 2024 and, if taken forward, will be subject to separate consultation.
Food Hygiene Fine
Food safety failings cost deli £32,000 in prosecution this February 2024.
The owner of a delicatessen and bistro has been ordered to pay more than £32,000 for failing to comply with food hygiene regulations.
Twenty food safety and hygiene-related charges were issued after Environmental Health inspectors from South Kesteven District Council visited Oblio’s Deli & Bistro in Westgate, Grantham.
During the hearing, magistrates saw photo evidence of the inadequate conditions and were told about unsafe food practices.
Across separate inspections in 2022 and 2023, inspectors found whipped and single cream, pastry, cheese and raw meat that were past the use-by date, contravening the Food Safety and Hygiene Regulations 2013.
Fridges in the premises were running at unsafe temperatures above 8°C to prevent the growth of harmful bacteria and toxins. Expired cheese stored in the fridges had also grown mould.
The prosecution highlighted a continued build-up of grease on walls and surfaces due to unsuitable and insufficient ventilation, inadequate provision of hand-washing facilities and the poor condition of floor surfaces.
The court heard how the business was served two improvement notices in October 2022 but failed to resolve them in the time given.
This underlines the importance of complying with food safety and hygiene requirements and having appropriate HACCP and risk assessments in place from the smallest to the largest food businesses. Food safety failings cost deli £32,000 in court | South Kesteven District Council