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Old Number Fifteen Bourbon Whiskey produced by Melbourne-based Edgemill Group was one of the products highlighted in the complaint by DISCUS.
Edgemill’s managing director Alex Stavrakoulis said accurate product descriptions are essential to maintaining the integrity of the industry and avoiding trade and labelling disputes.
“We do not believe that our spirit contravenes US law, as our production process adheres to the legal requirements set forth under the Australia-US free trade agreement,” he said.
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”.
“However, it is a fact that there is not currently any single authority in Australia that can raise an objection to the isolated cases we have seen of spirits labelled unlawfully, nor are there any adequate forms of recourse available under Australian law,” he said.
Macleay said federal policy settings had not kept pace with the rapid growth of the spirits industry from 28 distilleries in 2014 to more than 700 a decade later.
Macleay wants a standalone body to promote Australian spirits through marketing as well as improving regulation and compliance.
He also called for the Australian Tax Office to use blockchain technology to reduce the illicit trade of spirits, “which is becoming more attractive to organised crime as the spirits excise tax in this country gets increasingly out of hand”.
The stoush over labelling follows concerns that some distillers are labelling products whisky in contravention of laws requiring whisky, brandy and rum to be matured by storage in wood for a minimum of two years.
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Palm Valley Spirits managing director Lewis Millward backs efforts to strengthen labelling laws for Australian spirits, including adhering to rules about place of origin.
“We are indeed concerned that consumers may be misled by products improperly labelled as bourbon and whiskey,” he said.
Millward said misleading labels undermines consumer trust and harms the reputation of legitimate producers that adhere to strict production standards and labelling requirements.
Millward’s distillery in northern NSW manufactures a range of products including a coconut spirit barrel-aged in oak.
“We don’t, and can’t by law, call it a bourbon or whiskey as its source is coconut nectar not grains or corn,” he said.
“We believe that clear and honest labelling helps protect both consumers and the integrity of the spirits industry, ensuring that high-quality, authentically produced spirits are easily identifiable.”