As the EU prepares for the next 5 years, growth and competitiveness are back on the agenda. But they must be achieved in a sustainable way. So how can we turn 'sustainable growth' from a political concept into a hard economic reality? And what can our sector contribute? These were some of the questions raised at the Spirits SUMMIT 2024 on 20 November 2024 at the Residence Palace, followed by our legendary cocktail party!
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The Summit began with an opening address from Ian McLernon, President of spiritsEUROPE, setting the stage for discussions on the critical issues of trade and sustainability within the spirits sector and the wider EU context. Speaking to representatives from EU institutions, industry leaders and stakeholders, Ian McLernon stressed the urgency of restoring economic growth and the key role the spirits sector can play in this effort.
"With growth forecasts for the Eurozone barely reaching 1% next year, this is NOT growth. And it is NOT sustainable," he said, calling for a shift in EU policy-making to prioritise competitiveness and growth. His remarks underlined the high stakes as Europe faces a sluggish economic recovery in a world of rapid geopolitical change.
Ian McLernon identified two key areas where EU policy could have a significant impact: trade and sustainability. He highlighted the vital contribution of the distilled spirits sector to the European economy, citing its support for rural jobs, its symbiotic relationship with the hospitality sector - where every distilled spirits job creates 11 HORECA jobs - and its €9 billion in exports last year. "Our sector is structurally well placed to contribute to Europe's competitiveness and growth in the years ahead," he said.
However, Ian McLernon warned that poorly designed policies, such as tariffs resulting from unrelated trade disputes, could stifle this potential. Stressing the need for a careful balance between EU trade and sustainability rules, he said: "EU policy and regulation over the next five years must play a helping hand in boosting competitiveness and stimulating and sustaining growth".
In closing, Ian McLernon reaffirmed the sector's commitment to driving sustainability and innovation while addressing complex global challenges. He expressed the hope that the discussions at the Summit would inspire actionable strategies to help the spirits sector - and Europe - realise its full potential.
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The first panel, moderated by Andy Bounds, EU Correspondent of the Financial Times, discussed how the EU can strike a balance between maintaining the openness to trade that is crucial for its competitiveness and consumer benefits and responding to growing calls for "strategic autonomy". It featured an impressive line-up of experts:
The panel highlighted the enduring importance of trade openness in navigating an increasingly complex global environment and emphasized the EU's role in championing an open, rules-based trading system to bolster resilience and competitiveness. Panelists underscored the value of trade agreements in diversifying sourcing and exports, providing companies with greater options and enhancing their resilience while making the case for diverse forms of engagement with third countries where appropriate. They also explored the future of the transatlantic relationship, noting its strategic and economic significance and calling for an open approach, stronger alignment, and sustained cooperation. Lastly, the discussion turned to WTO reform, while reaffirming the organisation's critical role as a safety net and its contributions through its transparency functions.
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The Strategic Dialogue on the Future of Agriculture underlined Europe's need to produce food "with the utmost reliability" and "at the highest level of quality and diversity". At the same time, however, we need to better reconcile agriculture with nature. The second panel, moderated by Dr Sabine von Wiren-Lehr, agronomist and expert on EU environmental policy, brought together a diverse group of experts to discuss how Europe's agri-food chain can remain highly competitive while improving its sustainability performance.
The honest and constructive discussions of the sustainability panel, which marked the official launch of spiritsEUROPE’s “Distiller Companion to Sustainability,” resulted in several recommendations for organizations aiming to explore certification as part of their sustainability journey. Efforts must be developed from the bottom up, allowing everyone to participate. Simply raising the bar and mandating compliance is insufficient; steps to achieve progress must be built collectively. There is no one-size-fits-all formula for sustainability, as what is sustainable and feasible depends greatly on the local context. The three pillars of sustainability—environment, people, and profit—are closely interconnected, and any action must positively impact all three areas to gain wide, long-term support along the value chain. The key advice is to start, listen, and learn.
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Mr Eric Sargiacomo, newly elected Member of the European Parliament and Vice-President of the AGRI Committee closed the Summit with key messages on the economic and cultural importance of viticulture, wine and spirits in Europe and the challenges facing our sectors.
Following the debate of the 2nd panel, MEP Sargiacomo stressed the importance of balancing sustainability and competitiveness. We must avoid polarising debates on sustainability, he said, quoting Professor Strohschneider: "There are two pitfalls to avoid: promoting food production that is incompatible with the environment, and defending environmental protection that ignores the socio-economic conditions of agricultural activity".
He called for a holistic approach to balance the economic, social and environmental dimensions and urged for better tools to support farmers in transition.
Building on the insights from the first panel on trade, Eric Sargiacomo emphasized that the export-driven success of the wine and spirits sector makes these two sectors vulnerable to international trade tensions, such as the disputes with China and potential risks from US policies. Urging Europe to protect its producers in a "weaponised" trade environment, he said: "In this new Cold War, it would be a mistake to think that backing down will avoid trade retaliation."
MEP Sargiacomo pledged to support the wine and spirits sector in its efforts to promote responsible alcohol consumption. "We must not fight the wrong battle: the problem is excessive alcohol consumption," he said. He argued against prohibition, stressing the importance of education to combat excessive alcohol consumption while defending the cultural and social dimension of wine and spirits in an increasingly individualistic society where social isolation is growing.
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