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A Toast to Prosecco… or Is it Glera?
In 2009, Italy changed the name of the Prosecco grape variety to Glera, but what has that meant for the Prosecco geographical indication (GI) around the world? Marion Heathcote and Benita Lau of Davies Collison Cave explain.
Twelve years ago, Italy passed a decree to rechristen the Prosecco grape variety as Glera, leaving Prosecco available for protection as a designation of origin for wine produced in restricted locations in Italy. This was shortly followed by the European Union passing a regulation to rename the grape variety within the EU.
With the passage of time and the rising demand for Prosecco worldwide, Italian grape growers and winemakers have broadened their attention beyond European borders. The Consorzio di Tutela della Denominazione di Origine Controllata Prosecco (Consortium), an Italian institution representing local stakeholders, has worked closely with the European Commission in a bid to secure comparable protection for Prosecco overseas.
We look at how Prosecco is being poured in Australia, Singapore, and New Zealand, all of which have varying systems for GI protection, priorities, and market conditions, to determine where this “happy hour” may end.
Australia
Melbourne’s King Valley is the birthplace of Australian Prosecco. Prosecco grapevines were first planted here in the 1990s, leading to the first commercial quantities of Australian Prosecco in 2004. Since then, production has expanded to meet robust domestic and overseas demand. Around US $40 million worth of Australian Prosecco wine is exported yearly to countries such as China and New Zealand.
How then are GIs protected in Australia? Australian common law, consumer laws, and even food standards offer grounds for enforcement if it can be proved that use of a name for certain products is likely to mislead the public. Moreover, Australia has a GI registration system, albeit one that only applies to wine. The bulk of this register comprises terms covered under bilateral wine treaties with the EU.
The dispute over Prosecco “bubbled over” around 2010 when the European Commission requested that this term be registered as a GI for wines produced in parts of Italy. The Winemakers’ Federation of Australia (WFA), which at the time served as Australia’s national association of winegrape growers and winemakers, filed an objection.
“The High Court’s decision confirms that traders can continue to market Prosecco wines in Singapore even if they do not originate from Italy.”
Marion Heathcote (pictured) and Benita Lau , Davies Collison Cave
The crux of the challenge was that Prosecco had been used as the name of a grape variety in Australia prior to the application date. In response, the European Commission raised various arguments including that use in Australia was de minimis and contravened Australia’s laws on false and misleading conduct.
Based on the evidence lodged, the Registrar was satisfied that the term Prosecco had been used in Australia as the name of a grape variety, and that such use was not misleading since the wine products were specified as being made in Australia and based on the grape variety named Prosecco. Accordingly, WFA blocked the registration of Prosecco in 2013.
In 2018, the issue of GI protection for Prosecco resurfaced when the Australia and the EU commenced negotiations for a free trade agreement (FTA). Australia has faced this dilemma before, strategically sacrificing its generic use of “Champagne" as of 2010 in favor of the term sparkling wine. Faced with vigorous pushback from the Australian wine industry”, no decision has yet been made for Prosecco.
New Zealand
In New Zealand, negotiations for a FTA with the EU are also underway. The EU is New Zealand’s fourth-largest trading partner, and two-way trade worth more than US $11 billion annually is projected to jump by 36 percent with an FTA in place.
New Zealand’s current model of GI protection is similar to that in Australia, with provisions under common law, consumer law, and food acts prohibiting misleading use. Its GI Register, however, is slightly broader than its Australian counterpart, covering GIs for wine as well as spirits. As domestic production and export of Prosecco wines has been growing steadily, the EU’s proposal for a broader framework for GI protection has raised concerns.
Indeed, the Consortium's application to register Prosecco as a GI in New Zealand in 2017 is still under examination. Another dispute could very well be in “secondary ferment.”
“The High Court’s decision confirms that traders can continue to market Prosecco wines in Singapore even if they do not originate from Italy.”
Marion Heathcote and Benita Lau (pictured), Davies Collison Cave
Singapore
As part of the EU-Singapore Free Trade Agreement which entered into force in 2019, Singapore implemented higher standards for GI protection and established a new GI Registry. European producers swiftly applied to register GIs including Port and Champagne. However, the Consortium’s application for Prosecco faced opposition from Australian Grape and Wine Incorporated (AGW) (an amalgamation of WFA and Australian Vignerons).
This opposition was based on the grounds that registration of Prosecco would mislead Singaporean consumers as to origin, and that Prosecco did not identify goods where a given characteristic was essentially attributable to the claimed place.
The Registrar dismissed the opposition at first instance, holding that registration would not mislead consumers in Singapore. The evidence showed that Italian Prosecco had a reputation in Singapore due to continuous sales since 2010 which outweighed sales of Australian Prosecco.
However, AGW found success upon appeal to the High Court of Singapore. The High Court’s decision highlighted evidence of the Prosecco grape variety being cultivated in significant quantities in other countries, including Australia. Given such evidence of concurrent sales of Australian and Italian Prosecco in Singapore, the Court held that registration of Prosecco for wines originating only from Italy would mislead Singaporean consumers as to the origin of such products.
This decision confirms that traders can continue to market Prosecco wines in Singapore even if they do not originate from Italy.
What Happens Next?
The reality is that GI protection forms only one aspect of trade negotiations. Controversial names such as Prosecco may complicate negotiations, but are unlikely to eclipse the significant mutual benefits promised under an FTA. In certain cases, industry stakeholders may find themselves having to defend their interests through oppositions and legal proceedings, and then needing to become adaptable to market driven changes. Cheers to that!
Marion Heathcote is a Trade Mark Attorney and Principal at Davies Collison Cave (Australia). She can be contacted at MHeathcote@dcc.com
Benita Lau is a Trade Mark Attorney and Associate at Davies Collison Cave (Singapore). She can be contacted at BLau@dcc.com
Video courtesy of Envato Elements / stusya
Sunday, May 1, 2022
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