Vodka war

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Vodka war refers to heated discussions within the European Union about the definition of which hard liquors may or may not be branded as "vodka".^[1]^[2] ^[3] The war was triggered by the actions of Diageo, who began marketing their Cîroc vodka as uniquely produced exclusively from grapes. ^[4]

The countries of the EU "Vodka Belt" argue that only spirits made exclusively from cereals, potatoes and sugar beet molasses may be branded vodka. Other distillers insist on a broader definition. The Schnellhardt compromise, proposed by Horst Schnellhardt, suggests that vodkas made from items other than cereals, potatoes and molasses should say "Vodka produced from..." on the label.^[1]

On February 20, 2006 Poland put a demand to restrict the definition of Vodka within EU, and the move was supported by the vodka belt countries and Germany"^[5] This demand was triggered by a 2005 European Commission proposal to split vodka category into several subcategories basing on the flavor and raw materials.

If the Vodka Belt prevails, it will significantly influence the global $12 billion annual^[3] vodka market. In particular, many popular vodkas, such as grape vodka Ciroc will have to be re-branded.

The issue goes beyond the EU: opinions are expressed that the United States, fastest-growing vodka producer, if its non-traditional vodkas are expelled from the EU, it may retaliate in the World Trade Organization.^[3]

1 Arguments for restricted definition
2 Arguments for broad definition
3 Schnellhardt compromise
4 See also
5 References

[edit] Arguments for restricted definition

Vodka must be clearly defined in the same way as it has been done for other hard liquors, such as brandy or whiskey, in terms of raw ingredients, manufacture process, etc.
Such definition serves the protection of the quality and the originality of the product, similar to the notion of cording to the long established traditions of its production, a brand protection similar to the "Protected designation of origin".

[edit] Arguments for broad definition

Traditionalists maintain that each good vodka has its own distinct flavor.
Threat of trade wars.
The proposal is seen as an attempt to monopolize the vodka market by the Vodka Belt
The restriction may hamper innovation, in the opinion of the UK representatives in the European Vodka Alliance ^[6]
The restriction may hamper US imports and lead to retaliation, since the United States is one of the largest vodka importers from the EU ($500 mln)^[6]

[edit] Schnellhardt compromise

The compromise was adopted by the EU's Environment Committee on January 30, 2007. Since then it was negotiated with the agriculture ministers, and further compromises have been proposed, e.g., the initial requirement of prominent print size was suggested to be dropped.^[7]

On June 19, 2007 The Europarliament voted for the compromise. In late August the position of the WTO is expected to be known, and the EU agriculture ministers will debate and vote on the issue in September.^[4]

Poland sees the EU's decision as "wódka war lost". Polish MEP Ryszard Czarnecki said "Would the French like champagne to be distilled from plums, and would the British accept whisky from apricots? That sounds like heresy. So please don't be surprised that we are refusing to recognize vodka made from waste."^[8] Polish vodka producers are going to fight back by forming the Polish Vodka Association, with the purpose of launching a public relations campaign abroad against the expected flood of cheap, poor quality vodkas. While the strong Polish brands, such as Wyborowa or Zubrowka, feel safe, the smaller producers are threatened by the competition against cheaper products made of "waste". ^[9]