Complaints about Australian distillers mislabelling products as whiskey and bourbon risk triggering a trade dispute with the United States.
Australian distillers are misleading consumers by wrongly labelling products as bourbon or whiskey, as the spirits industry warns high taxes are prompting an illicit trade in spirits.
A Department of Foreign Affairs and Trade spokeswoman said Australia “takes care” to meet its obligations under a free trade agreement with the US, including whiskey labelling.Credit:But the Distilled Spirits Council of the United States in 2020 wrote to then-Home Affairs Minister Peter Dutton to raise concerns about products that did not comply with provisions of the free trade agreement.
In a submission to the inquiry into food and beverage manufacturing it said Australia’s trading reputation would benefit through avoiding labelling disputes, “especially over terms protected by certification trademarks, like ‘Scotch Whisky’ and products considered distinctive to a particular place of origin, like ‘Bourbon’ and ‘Tennessee Whiskey’.”Old Number Fifteen Bourbon Whiskey produced by Melbourne-based Edgemill Group was one of the products highlighted in the complaint by DISCUS.
ADA president Paul Macleay said most Australian spirits manufacturers recognise the importance of protected geographical indications and labelling laws, “rather than imitating spirits that are distinctive of other nations”. Macleay wants a standalone body to promote Australian spirits through marketing as well as improving regulation and compliance.
Millward said misleading labels undermines consumer trust and harms the reputation of legitimate producers that adhere to strict production standards and labelling requirements.
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