Will flavored wines soon be subject to the "premix" tax in France?

The Social Security Financing Bill for 2020 is currently being examined by members of the National Assembly. A few days ago, an amendment concerning a certain category of wines was passed. Presented by LREM deputy Audrey Dufeu Schubert, it provides for the introduction of a tax on "premixes"—drinks that combine alcohol and non-alcoholic preparations—containing wine. The aim of this measure is to discourage young people from drinking these beverages, as they are the main target consumers. Until this vote, however, these flavored wines, such as grapefruit rosé, strawberry red, and peach white, were exempt from this tax. The tax only applied to premixes made with pure alcohol. For the French Federation of Aperitif Wines (FFVA), this tax is not entirely justified and it fears that it will lead to a "shift towards more alcoholic products." Explanations.

An amendment recently passed by the National Assembly

The congresswoman behind this extension of the premix tax to flavored wines considers it "essential, both from a public health and tax fairness perspective." To justify her amendment, she explains that as these drinks are mainly made from foreign wines, French producers would only be "very marginally" affected. She also points out that perry and cider are not affected by this tax, which has been set at €3 per deciliter of alcohol. And she is not the only member of parliament to consider this measure necessary to protect young consumers. Other elected officials believe that these aperitif drinks target young people and women, while promoting "habits that can lead to addiction." For Agnès Buzyn, the Minister of Health, this tax proposal is a step in the right direction, since "the exemption currently enjoyed by wine-based flavored drinks is not justified in terms of public health."

A measure deemed worrying by the French Federation of Aperitif Wines

While many members of parliament and the Minister of Health seem to agree with this amendment, the FFVA does not. Its president, Aymeric de Beauvillé, believes that this tax is "far removed from public health issues, because the aperitif wines are low in alcohol and rarely consumed by young people." The Federation bases this claim on panel figures indicating that 80% of these drinks are consumed by people over the age of 35. In its press release, it expresses concern about this tax targeting products with low alcohol content (less than 10%), which it believes is primarily "behavioral." It also points out that these beverages meet the demand of consumers who want to reduce their alcohol consumption "while maintaining a convivial atmosphere." In the meantime, we will have to wait for the final adoption of this 2020 Social Security Financing Bill to find out how the story ends.