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

The 2020 Social Security Financing Bill is currently being reviewed by members of the National Assembly. And a few days ago, an amendment concerning a certain category of wines was passed. Introduced by LREM lawmaker Audrey Dufeu Schubert, it calls for the imposition of a tax on “premixes”—which are beverages combining alcohol with non-alcoholic mixers—containing wine. The aim of this measure is to discourage young people from drinking them, as they are the primary target consumers for these beverages. However, until this vote, these flavored wines—such as grapefruit rosé, strawberry red, and peach white—were exempt from this tax. The tax previously applied only 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 may lead to a “shift toward higher-alcohol products.” Explanations.

An amendment recently passed by the National Assembly

The lawmaker behind this extension of the premix tax to flavored wines considers it “essential, from the perspective of both public health and tax fairness.” To justify her amendment, she explains that since these beverages are primarily made from foreign wines, French producers would be affected only “very marginally.” She also notes that perry and cider are not subject to this tax, which has been set at 3 euros per deciliter of alcohol. And she is not the only lawmaker who believes this measure is necessary to protect young consumers. Other elected officials believe that these aperitif drinks target young people and women, while fostering “habits that can lead to addiction.” For Agnès Buzyn, the Minister of Health, this proposed tax is a step in the right direction since “the exemption currently enjoyed by flavored wine-based beverages is not justified on public health grounds.”

A measure deemed concerning by the French Federation of Aperitif Wines

While many members of Congress and the Secretary of Health appear to support this amendment, the FFVA does not. Its president, Aymeric de Beauvillé, believes, on the contrary, that this tax is “far removed from public health concerns, because the aperitif wines "have a low alcohol content and are rarely consumed by young people." To support this claim, the Federation cites panel data showing that 80% of these beverages are consumed by people over the age of 35. Thus, in its press release, it expresses concern about this tax targeting products with low alcohol content (less than 10%), which, in its view, would primarily be a “behavioral” measure. Furthermore, it notes that these beverages meet a demand from consumers who wish to reduce their alcohol consumption “while maintaining a convivial atmosphere.” In the meantime, to find out how this story ends, we must wait for the final adoption of this 2020 Social Security Financing Bill.