Tag - Beverages

Europe’s premium cheese producers caught in global trade crossfire
AOSTA, Italy — The 380,000 wheels of Fontina PDO cheese matured each year are tiny in number compared to the millions churned out by more famous rivals — but that doesn’t make the creamy cheese any less important to producers in Valle d’Aosta, a region nestled in the Italian Alps.  Fontina’s protected designation of origin (PDO) provides consumers at home and abroad a “guarantee of quality and of a short supply chain,” explained Stéphanie Cuaz, of the consortium responsible for protecting the cheese from cheap copycats, as she navigated a hairpin turn on the way to a mountain pasture. With fewer than a hundred cows, a handful of farm hands and a small house where milk is transformed into cheese, the pasture at the end of the winding road feels far away from global trade tussles its flagship product is embroiled in. The EU’s scheme to protect the names of local delicacies from replicas produced elsewhere has proved controversial in international trade negotiations. For instance, in 2023, free trade talks with Australia were swamped by complaints from its cheese producers railing against EU demands that they refrain from using household names like “Mozzarella di Bufala Campana” and “Feta.”  Fontina was caught in the crossfire, having been included in the list of names the EU wants protected Down Under. Fontina DOP Alpeggio is a variant of the cheese produced during the summer months using milk from cows grazing in alpine pastures up to 2,700 meters above sea level | Lucia Mackenzie/POLITICO. No such protections exist in the U.S., where in the state of Wisconsin alone, there are a dozen “fontina” producers, one of which won bronze at the World Cheese Awards in 2022.  Europe’s small-time food producers find themselves in a bind: their protected status is vital for promoting their traditional products abroad, but charges of protectionism have soured some trade negotiations. Nonetheless, many of the bloc’s trading partners clearly see the benefits of the system, baking in similar protections for their own products into trade deals. PROTECTION VS PROTECTIONISM Fontina cheese can only be labeled as such if several strict criteria are met. Cows of certain breeds need to be fed with hay of a certain caliber and, crucially, every step of the cheesemaking process must take place within the region’s borders.   For Cuaz, who grew up on a dairy farm in Doues, a small town of around 500 people perched on the valley side, the protection of the Fontina name is vital to keep farming alive and sufficiently paid in the region. Tucked up against the French and Swiss borders, Valle d’Aosta is Italy’s least populated region, home to just over 120,000 inhabitants speaking a mixture of Italian, French and the local Valdôtain dialect. Fontina — which with its distinctive nutty flavor can be enjoyed on a charcuterie board, in a fondue, or encased in a veal chop — is one of over 3,600 foods, wines, and spirits registered under the EU’s geographical indications (GI) system. This protects the names of products that are uniquely linked to a specific region. The idea is to make them easier to promote and keep small producers competitive. In the EU alone, GI products bring in €75 billion in annual revenue and command a price that’s 2.23 times higher than those without the status, the bloc’s Agriculture Commissioner Christophe Hansen proclaimed earlier this year. He called the scheme a “true EU success story.” The GI system is predominantly used in gastronomic powerhouses like Italy and France, and Hansen hopes to promote uptake in the eastern half of the bloc.  Italy has the most geographical indications in the world, accounting for €20 billion in turnover, the country’s Agriculture Minister Francesco Lollobrigida pointed out, describing the system as an “extraordinary value multiplier.” ‘NOTHING MORE THAN A TRADE BARRIER’ While several trading partners apparently share the enthusiasm of Hansen and Lollobrigida  — the EU’s trade agreements with countries from South Korea to Central America and Canada include protections for selected GIs — others view the protections as, well, protectionist. The U.S. has long been the system’s most vocal critic, with the Trade Representative’s annual report on intellectual property protection calling it out as “highly concerning” and “harmful.” Washington argues that the rules undermine existing trademarks and that product names like “fontina,” “parmesan” and “feta” are common and shouldn’t be reserved for use by certain regions. That reflects the U.S. dairy industry’s resentment towards Europe’s GIs: Krysta Harden, U.S. Dairy Export Council president, argued they are “nothing more than a trade barrier dressed up as intellectual property protection.” Meanwhile, the National Milk Producers’ Federation blames the scheme, at least in part, for the U.S. agri-food trade deficit.  American opposition to the system doesn’t stop at its own trade relationship with the EU. The U.S. Trade Representative’s Office also accused the EU of pressuring trading partners to block certain imports and vowed to combat the bloc’s “aggressive promotion of its exclusionary GI policies.” DOUBLING DOWN Unfazed by the criticism, Hansen continues to tout geographical indications as vital in the EU’s ongoing trade negotiations with other countries.  The EU’s long-awaited trade accord with the Latin American Mercosur bloc is heading toward ratification and includes GI protections for both sides. Speaking in Brazil last month, Hansen went out of his way to praise his hosts for protecting canastra, a highland cheese, and cachaça, a sugarcane liquor, against imitations.  Fifty-eight of the GIs protected under the agreement are Italian, Lollobrigida told POLITICO. This protects Italy’s reputation for high-quality food, he said, and ensures “that Mercosur citizens receive top-quality products.” The EU recently concluded a deal with Indonesia which will protect more than 200 EU products, and a geographical indication agreement is actively being discussed in talks on a free-trade deal with India that both sides hope to wrap up this year. As negotiations with Australia pick up once again, the issue of GI cheeses is expected to return to the spotlight. The U.S. pushback on GIs in other countries has fallen on deaf ears, argued John Clarke, the EU’s former lead agriculture negotiator. He criticized detractors for peddling “specious arguments which bear no relationship to intellectual property rights.” American claims that some terms are universally generic are “illegitimate” and ultimately “very unsuccessful,” in Clarke’s view. “They came too late to the party,” he said, “and their arguments were not very convincing from a legal point of view.” CULTURE AND COMMERCE  The uptake of GIs in other countries demonstrates the additional value the schemes can bring for rural communities and cultural heritage, Clarke posited.  In Valle d’Aosta, the GI system “keeps people and maybe also young farmers linked to this region,” argued Cuaz, adding that young people leaving rural areas in favor of urban centers is a real problem for her region. From tournaments to find the “Queen” of the herd that are a highlight of summer weekends to the “Désarpa” parade marking the end of the season as cows return to the valley from their Alpine pastures, Fontina cheese production keeps traditions alive in the tiny region every year. The dairy industry even plays a role in making use of abandoned copper mines, where thousands of cheese wheels mature annually. Thousands of cheese wheels are matured the Valpelline warehouse, built in the tunnels of a former copper mine. | Lucia Mackenzie/POLITICO. Supporters of the GI scheme also point to the food and wine tourism opportunities it offers. Les Cretes vineyard, winery and tasting room represent one such success story.  The flavors imbued into traditional and native grape varieties by the soil of the Valle d’Aosta’s high-altitude vineyards justify its inclusion as a geographically protected product, explained Monique Salerno, who has worked for the family business for 15 years and is in charge of tastings and events. The premium price on the local wines is vital to keep the producers competitive, given that the steep vines need to be picked by hand, she added. The business expanded in 2017, building a tasting room to draw tourists to Aymavilles, the town with a population of just over 2,000 that houses much of the vineyard. TARIFF TROUBLE While American critics have, in Clarke’s view, “lost the war on terroir,” Europe’s small-time food producers are not immune to the rollercoaster of tit-for-tat tariffs that have dominated recent EU-U.S. trade negotiations.  Like the vast majority of European products heading to the U.S., cheese is subject to a 15 percent blanket tariff. In the meantime, however, organizational mishaps led to some temporary doubling of tariffs on Italian cheeses, angering major producers.  The whole saga has caused uncertainty, said Ermes Fichet, administrative manager of the Milk and Fontina Producers’ Cooperative.  The Les Cretes vineyard on the slopes surrounding Aymavilles. | Lucia Mackenzie/POLITICO The U.S. is Fontina’s largest overseas market, accounting for around 60 percent of direct exports. However, producers aren’t fearing for their livelihoods, yet, as most Fontina cheese isn’t exported at all: an estimated 95 percent of wheels are sent to distributors in Italy. Rather, the impact of U.S. trade policy is long term. The American market would in theory be able to absorb all of Fontina’s production, Fichet explains, but the sale of similar cheeses at lower prices there makes it difficult to expand market share.  According to figures released by the USDA’s statistics service, over 5.1 million kilos of “fontina” cheese was produced in Wisconsin alone in 2024. That comes out to a higher volume than the 3.1 million kilos of GI-certified Fontina originating in Valle d’Aosta annually.  And looking elsewhere isn’t an easy option for the small-time cheese makers, even if future trade agreements include GI recognition. While markets in countries like Saudi Arabia are growing, they would never close the gap left by U.S. producers if trade ties worsen, said Fichet.  Responding to the foreign detractors, he highlighted the benefits from the scheme at home. Fontina DOP “allows us to maintain the agricultural reality of certain places … it’s an extra reason to try to help those who are committed to carrying on with a product that is, let’s say, the little flower of the Valle d’Aosta.”
Small farmers
Agriculture and Food
Trade
Exports
Dairy
Nonalcoholic drink can’t be sold as ‘gin,’ EU top court rules
A non-alcoholic beverage may not be sold as gin, the Court of Justice of the EU ruled today in a case that could have wide-ranging consequences for a growing sector catering to health-conscious consumers. The case involved a drink being sold as Virgin Gin Alkolholfrei. The Luxembourg court ruled that wording violated an EU law that says gin should be produced with ethyl alcohol and juniper berries, with a minimum alcoholic strength by volume of 37.5 percent.  The law is meant to protect gin producers from competition and consumers against confusion, the court said in a statement. The gin judgment comes as plant-based meat products gear up for a potential labeling fight, depending on whether a controversial “veggie burger ban” makes it through inter-institutional negotiations. A German association for combating unfair competition brought the case against PB Vi Goods, which manufactures the gin copycat. A German court referred the case to the Court of Justice, which found a “clear prohibition in EU law” because the beverage does not contain alcohol. The product can be sold, but not as “gin,” regardless of whether or not it uses terms like “non-alcoholic” or “virgin.” The top EU court has upended consumer trends in the past: it ruled against calling plant-based products “milk,” “cream,” “butter,” “cheese” or “yogurt”’” in 2017.
Agriculture and Food
Courts
Health Care
Labeling
Alcohol
Transforming global food systems demands collective action
At New York Climate Week in September, opinion leaders voiced concern that high-profile events often gloss over the deep inequalities exposed by climate change, especially how poorer populations suffer disproportionately and struggle to access mitigation or adaptation resources. The message was clear: climate policies should better reflect social justice concerns, ensuring they are inclusive and do not unintentionally favor those already privileged.  We believe access to food sits at the heart of this call for inclusion, because everything starts with food: it is a fundamental human right and a foundation for health, education and opportunity. It is also a lever for climate, economic and social resilience.  > We believe access to food sits at the heart of this call for inclusion, > because everything starts with food This makes the global conversation around food systems transformation more urgent than ever. Food systems are under unprecedented strain. Without urgent, coordinated action, billions of people face heightened risks of malnutrition, displacement and social unrest.   Delivering systemic transformation requires coordinated cross-sector action, not fragmented solutions. Food systems are deeply interconnected, and isolated interventions cannot solve systemic problems. The Food and Agriculture Organization’s recent Transforming Food and Agriculture Through a Systems Approach report calls for systems thinking and collaboration across the value chain to address overlapping food, health and environmental challenges.   Now, with COP30 on the horizon, unified and equitable solutions are needed to benefit entire value chains and communities. This is where a systems approach becomes essential.  A systems approach to transforming food and agriculture  Food systems transformation must serve both people and planet. We must ensure everyone has access to safe, nutritious food while protecting human rights and supporting a just transition.   At Tetra Pak, we support food and beverage companies throughout the journey of food production, from processing raw ingredients like milk and fruit to packaging and distribution. This end-to-end perspective gives us a unique view into the interconnected challenges within the food system, and how an integrated approach can help manufacturers reduce food loss and waste, improve energy and water efficiency, and deliver food where it is needed most.   Meaningful reductions to emissions require expanding the use of renewable and carbon-free energy sources. As outlined in our Food Systems 2040 whitepaper,1 the integration of low-carbon fuels like biofuels and green hydrogen, alongside electrification supported by advanced energy storage technologies, will be critical to driving the transition in factories, farms and food production and processing facilities.   Digitalization also plays a key role. Through advanced automation and data-driven insights, solutions like Tetra Pak® PlantMaster enable food and beverage companies to run fully automated plants with a single point of control for their production, helping them improve operational efficiency, minimize production downtime and reduce their environmental footprint.  The “hidden middle”: A critical gap in food systems policy  Today, much of the focus on transforming food systems is placed on farming and on promoting healthy diets. Both are important, but they risk overlooking the many and varied processes that get food from the farmer to the end consumer. In 2015 Dr Thomas Reardon coined the term the “hidden middle” to describe this midstream segment of global agricultural value chains.2   This hidden middle includes processing, logistics, storage, packaging and handling, and it is pivotal. It accounts for approximately 22 percent of food-based emissions and between 40-60 percent of the total costs and value added in food systems.3 Yet despite its huge economic value, it receives only 2.5 to 4 percent of climate finance.4  Policymakers need to recognize the full journey from farm to fork as a lynchpin priority. Strategic enablers such as packaging that protects perishable food and extends shelf life, along with climate-resilient processing technologies, can maximize yield and minimize loss and waste across the value chain. In addition, they demonstrate how sustainability and competitiveness can go hand in hand.  Alongside this, climate and development finance must be redirected to increase investment in the hidden middle, with a particular focus on small and medium-sized enterprises, which make up most of the sector.   Collaboration in action  Investment is just the start. Change depends on collaboration between stakeholders across the value chain: farmers, food manufacturers, brands, retailers, governments, financiers and civil society.  In practice, a systems approach means joining up actors and incentives at every stage.5 The dairy sector provides a perfect example of the possibilities of connecting. We work with our customers and with development partners to establish dairy hubs in countries around the world. These hubs connect smallholder farmers with local processors, providing chilling infrastructure, veterinary support, training and reliable routes to market.6 This helps drive higher milk quality, more stable incomes and safer nutrition for local communities.  Our strategic partnership with UNIDO* is a powerful example of this collaboration in action. Together, we are scaling Dairy Hub projects in Kenya, building on the success of earlier initiatives with our customer Githunguri Dairy. UNIDO plays a key role in securing donor funding and aligning public-private efforts to expand local dairy production and improve livelihoods. This model demonstrates how collaborations can unlock changes in food systems.  COP30 and beyond  Strategic investment can strengthen local supply chains, extend social protections and open economic opportunity, particularly in vulnerable regions. Lasting progress will require a systems approach, with policymakers helping to mitigate transition costs and backing sustainable business models that build resilience across global food systems for generations to come.   As COP30 approaches, we urge policymakers to consider food systems as part of all decision-making, to prevent unintended trade-offs between climate and nutrition goals. We also recommend that COP30 negotiators ensure the Global Goal on Adaptation include priorities indicators that enable countries to collect, monitor and report data on the adoption of climate-resilient technologies and practices by food processors. This would reinforce the importance of the hidden middle and help unlock targeted adaptation finance across the food value chain.  When every actor plays their part, from policymakers to producers, and from farmers to financiers, the whole system moves forward. Only then can food systems be truly equitable, resilient and sustainable, protecting what matters most: food, people and the planet.  * UNIDO (United Nations Industrial Development Organization)  Disclaimer POLITICAL ADVERTISEMENT * The sponsor is Tetra Pak * The ultimate controlling entity is Brands2Life Ltd * The advertisement is linked to policy advocacy regarding food systems and climate policy More information here. https://www.politico.eu/7449678-2
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Energy
Agriculture
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Agriculture and Food
Why we must work together for a balanced drinking culture
Alcohol has been enjoyed in societies for thousands of years, playing a role in celebrations and gatherings across the world. While misuse continues to cause harm, it’s encouraging to see that, according to World Health Organization data, trends are moving in the right direction. Consumers are better informed and increasingly aware of the benefits of moderation.   While Diageo is only relatively young — founded in 1997 — our roots run deep. Many of our brands date back centuries, some as far back as the 1600s. From iconic names such as Guinness and Johnnie Walker to modern innovations like Tanqueray 0.0, we are proud to continue that legacy by building and sustaining exceptional brands that resonate across generations and geographies. We want to be one of the best performing, most trusted and respected consumer products companies in the world — grounded in a strong sense of responsibility.  That means being transparent about the challenges, proactive in promoting responsible drinking, and collaborative in shaping the future of alcohol policy. We are proud of the progress made, but we know there is more to do. Lasting change requires a whole-of-society approach, bringing together governments, health experts, civil society and the private sector.   We believe a more balanced, evidence-based dialogue is crucial; one that recognizes both the risks of harmful drinking and the opportunities to drive positive change. Our brands are woven into cultural and social traditions around the world, and the industry contributes significantly to employment, local economies and public revenues. Recognizing this broader context is essential to shaping effective, proportionate and collaborative alcohol policies. Public-private collaboration brings together the strengths of different sectors, and these partnerships help scale impactful programs.  > We believe a more balanced, evidence-based dialogue is crucial; one that > recognizes both the risks of harmful drinking and the opportunities to drive > positive change. Across markets, consumers are increasingly choosing to drink more mindfully. Moderation is a long-term trend — whether it’s choosing a non-alcoholic alternative, enjoying fewer drinks of higher quality, or exploring the choice ready-to-drink formats offer, people are drinking better, not more, something Diageo has long advocated. Moderation is not a limitation; it’s a mindset. One of the ways we’re leading in this space is through our expanding non-alcoholic portfolio, including the acquisition of Ritual Beverage Company in the US and our investment in Guinness 0.0. This growing diversity of options empowers individuals to choose what’s right for them, in the moment. Moderation is about choice, and spirits can also offer creative ways to moderate, such as mixing alcoholic and non-alcoholic ingredients to craft serves like the ‘lo-groni’, or opting for a smaller measure in your gin and tonic.  Governments are increasingly taking proportionate approaches to alcohol regulation, recognizing the value of collaboration and evidence-based policy. There’s growing interest in public-private partnerships and regulatory rationality, working together to achieve our shared goal to reduce the harmful use of alcohol. In the UK, underage drinking is at its lowest since records began, thanks in part to initiatives like Challenge 25, a successful public-private collaboration that demonstrates the impact of collective, targeted action.  > Moderation is not a limitation; it’s a mindset. Diageo has long championed responsible drinking through campaigns and programs that are measurable and scalable. Like our responsible drinking campaign, The Magic of Moderate Drinking, which is rolled out across Europe, and our programs such as Sober vs Drink Driving, and Wrong Side of the Road, which are designed to shift behaviors, not just raise awareness. In Ireland, we brought this commitment to life at the All Together Now music, art, food and wellness festival with the launch of the TO.0UCAN pub in 2024, the country’s first-ever non-alcoholic bar at a music festival. Serving Guinness 0.0 on draught, it reimagined the traditional Irish pub experience, offering a fresh and inclusive way for festival-goers to enjoy the full energy and atmosphere of the event without alcohol.  Another example comes from our initiative Smashed. This theatre-based education program, developed by Collingwood Learning and delivered by a network of non-government organizations, educates young people and helps them understand the dangers of underage drinking, while equipping them with the knowledge and confidence to resist peer pressure. Diageo sponsors and enables Smashed to reach millions of young people, teachers and parents across the globe, while ensuring that no  alcohol brands of any kind are mentioned. In 2008, we launched DRINKiQ, a first-of-its-kind platform to help people understand and be informed about alcohol, its effects, and how to enjoy it responsibly. Today, DRINKiQ is a dynamic, mobile-first platform, localized in over 40 markets. It remains a cornerstone of our strategy.  > Diageo has long championed responsible drinking through campaigns and programs > that are measurable and scalable. In the UK, our partnership with the Men’s Sheds Association supports older men’s wellbeing through DRINKiQ. Most recently, this collaboration expanded with Mission: Shoulder to Shoulder, a nationwide initiative where Shedders are building 100 buddy benches to spark over 200,000 conversations annually. The campaign promotes moderation and connection among older men, a cohort most likely to drink at increasing or higher risk levels. Across all our partnerships, we focus on the right message, in the right place, at the right time. They also reflect our belief that reducing harmful drinking requires collective action.  Our message is simple: Diageo is ready to be a proactive partner. Let’s build on the progress made and stay focused on the shared goal: reducing harm. With evidence-based policies, strong partnerships and public engagement, we can foster a drinking culture that is balanced, responsible and sustainable. Together, we can make real progress — for individuals, communities and society as a whole. 
Data
Energy
Agriculture and Food
UK
Regulation
Vodka production plummets in Russia
Production of hard liquor has collapsed in Russia — even as data shows that citizens are drinking more strong alcohol than ever before. Russia’s Federal Service for Alcohol Market Regulation reported this week that manufacturing of spirits declined by more than 16 percent in the first half of 2025. Official data shows that vodka production is down by 10.9 percent year on year, from 33.40 million decaliters in 2024 to 31.38 million decaliters in the corresponding period in 2025. The legendary Russian beverage was, for a time in the 1990s, used as a national currency and remains a celebrated part of the country’s culture to this day. However, while production is down, consumption is up. Russians drunk more in 2024 than at similar stages in the last eight years. And more and more people prefer rum, whiskey, brandy and tequila, a Russian financial auditing firm, Finexpertisa, reported in May. At the same time, Russian President Vladimir Putin said that Russians are starting to drink less, claiming more of them prefer sports. “Quit drinking and start skiing,” he joked. The sales of those products grew by 10.2 percent to 3.2 liters a year per capita person, surpassing vodka consumption in some regions. But vodka is still the top drink of choice throughout the country, holding 60 percent of sales annually. The decline in vodka production in Russia was triggered by rising alcohol prices and the ban on the export of alcoholic beverages to the EU, the U.S. and other countries, due to Western sanctions. This ban has significantly reduced export revenue for Russian vodka producers, a state product quality control service in the Rostov region reported in June, citing data from the Strategy Partners consulting agency.
Foreign Affairs
Agriculture and Food
War in Ukraine
War
Economic sanctions