Hong Kong Continues to Foster International Wine Industry
Hong Kong has been making a concerted effort to promote the wine industry within its borders. The Hong Kong Commerce and Economic Development Bureau (CEDB) began signing Memoranda of Understanding (MOUs) with wine producing regions in August of 2008 when it signed an MOU with France. This followed Hong Kong’s abolition of the wine tax, which opened up the market considerably to foreign producers. The MOUs piggy-backed on the 0% wine tax by addressing additional wine industry concerns, including fraud, storage and handling, education, promotion of wine tourism, and investment and cooperation in industry trade events. Since signing with France, the CEDB has signed similar MOUs with Bordeaux, Spain, Australia, Italy, Hungary and New Zealand, and has renewed its official support for its wine industry initiative.
In February of 2010, the CEDB took another step forward when it signed a cooperation agreement with China regarding wine entering the mainland through Hong Kong. This agreement puts in place a voluntary registration system that seeks to streamline the process of importing wine from Hong Kong, and in the process sets Hong Kong up as a gateway for foreign wine entering China, which as we all know is an important and growing market.
The CEDB’s activity has finally reached the U.S. – in May of this year it signed an MOU with the U.S. and a joint MOU with Washington and Oregon. Not only does this continue efforts that regional organizations have been making to promote Northwest wine in Asia, but it is yet another acknowledgment of how important this region is becoming in the global wine economy.
FYI - Upcoming events in Hong Kong include the Wine and Dine Festival in October and the Hong Kong International Wine and Spirits Fair in November.
Dueling Liquor Privatization Initiatives in Washington State: What do the Initiatives Say and Who are the Players?
Word is out that enough signatures have likely been gathered to ensure that an initiative backed by Costco will make it on the on the ballot in Washington State in November. The Costco backed initiative would transition sales of spirits in Washington State from state operated liquor stores to private retail stores and allow manufacturer to retailer direct sales and volume discounts.
A second initiative backed by distributors would also move spirits sales from state operated stores to private retail stores, but would preserve the role of distributors in a traditional three tier system, has until July 2nd, to amass enough signatures to make it on the ballot.
A third group is raising money to oppose any attempts to change the current state administered system. Combined contributions of over $1,200,000 have been reported to the Washington State Public Disclosure Commission in support of and opposition to privatization.
We have assembled the following information so that you can read the actual initiatives, explore the proponents and opponents, and form your own opinion.
1. Initiative No. 1100 was filed by Modernize Washington, is financially backed by big box retailer Costco, and has statements of support from other groups that retail liquor such as the Northwest Grocery Association and the Washington Restaurant Association.
- Where to Follow updates: Modernize Washington on Facebook
- Reported Contributions: > $700,000
2. Initiative No. 1105 was filed by Washington Citizens for Liquor Reform and is financially backed by alcohol distributors Young’s Market Company and Odem Southern Holdings.
- Where to Follow updates: Yes on 1105 on Facebook
- Reported Contributions: $400,000
3. Keep our Kids Safe is leading efforts to preserve the existing state operated system. Washington Association for Prevention of Substance Abuse filed fund raising reports for Keep our Kids Safe with the Public Disclosure Commission. The reports identify the union that the state liquor store employees belong to, United Food and Commercial Workers as the source of the funds. UFCW 21, with the endorsement of other organizations, has issued a fact sheet outlining rationales for preserving the current system of state run liquor stores.
- Reported Contributions: $38,000
We will report back in a few weeks to let you know if one or both privatization initiatives make on to the ballot and the status of efforts to promote preservation of the existing state operated system.
Wineries Taking Greenhouse Gas Reduction Seriously
At least fourteen wineries Oregon have instituted improvements to reduce Greenhouse Gas (“GHG”) emissions, including the installation of solar panels, lighting retrofits, tank insulation and in some cases, have gone so far as to use goats, sheep, and raptors instead of lawn-mowers and pesticides. For instance a winery in Eugene, reportedly has trained owls and red-tailed hawks to protect the vineyards from the small birds that like to feed on their grapes.
In 2009 the fourteen wineries in Oregon banded together to create the first industry carbon-reduction program. The “Carbon Neutral Challenge,” a joint project of the Oregon Environmental Council and the Oregon Wine Board included twenty percent of Oregon’s wines annual production in 2009. In other words, one in five bottles of wine produced in 2009 was produced in a facility that completed the Carbon Neutral Challenge. Each contributing winery accounts for their greenhouse gas emissions and incorporates this information into a carbon inventory tool. The participants must also become part of the Climate Registry.
Over the last year these projects have repeatedly prevented 211 metric tons of methane from being released; the CO2 is equivalent of 9,370 barrels of oil consumed; the annual emissions of 770 cars or the electricity used by 489 homes in one year. For any emissions that remain after all their reduction efforts, the wineries have located verifiable offset projects in the agricultural sector including methane digesters in Oregon, Washington and Idaho through the Bonneville Environmental Foundation.
