The Impact of Legislation on the Sale and Consumption of Non-Alcoholic Wine

The Impact of Legislation on the Sale and Consumption of Non-Alcoholic Wine - Domaine de Brau
Published on 31.10.24

Non-alcoholic wine is booming, and many wine industry professionals, wine merchants, restaurateurs and distributors are turning to this market to diversify their offerings and meet the growing demand. However, as with any consumable product, non-alcoholic wine is subject to specific regulations that vary from country to country. Understanding these laws is essential to navigate this market, maximize business opportunities and avoid any legal pitfalls.

In this article, we will explore the impact of legislation on the sale and consumption of non-alcoholic wine, addressing regulatory issues, labeling and tax specificities. This overview will help you better understand how to manage this product in your points of sale and seize the opportunities it offers.

1. What is a Non-Alcoholic Wine? The Legal Framework

Before diving into the legislative details, it is crucial to understand what the law defines as “alcohol-free wine”. In France, as in many countries, for a drink to be considered “alcohol-free”, it must contain less than 0.5% alcohol by volume. This limit is what legally distinguishes dealcoholized wine from traditional wine.

Tips:
Be vigilant when choosing your products. Make sure that the wines you offer comply with current regulations.
Highlight the alcohol content on your labels or in your menus to reassure your customers who are concerned about consuming alcohol-free products.
Clearly communicate the “alcohol-free” nature of your products, but be precise about the terms used, by provoking ambiguous expressions like “light wine”.

The Impact of Legislation on the Sale and Consumption of Non-Alcoholic Wine - Domaine de Brau
2. Laws on Advertising and Promotion of Non-Alcoholic Wine

In France, the legislation on advertising alcoholic beverages is very strict, particularly with the Évin law, which regulates communication around products containing alcohol. But what about alcohol-free wine? Can we advertise these products without risk?

What the law says:
The Évin law does not apply to alcohol-free beverages. Consequently, the restrictions imposed on traditional wines do not apply to dealcoholized wines. You can therefore advertise your alcohol-free wines in a much freer way: on social networks, on television, in magazines or even via billboards.

As a wine merchant or restaurateur, this advertising freedom offers you a considerable advantage. You can promote your alcohol-free wines through advertising campaigns, organize events around alcohol-free wine, or even launch partnerships with influencers without being limited by the constraints imposed on alcoholic beverages.

3. Tax Specificities of Non-Alcoholic Wine

One of the major financial advantages of alcohol-free wine concerns taxation. Unlike traditional wines, alcohol-free wines are not subject to the same taxes, particularly in terms of excise duties, because the latter are only applied to drinks containing alcohol. Alcohol-free wine or drinks made from dealcoholized wine are subject to a VAT rate of 5.5% compared to 20% with alcohol.

Impact on your margins:
This difference in taxation can considerably work in favor of professionals, because it allows them to maintain a competitive price while benefiting from a larger margin. Indeed, even if alcohol-free wine is often sold at the same price as a classic wine (in particular due to the costly dealcoholization processes), the absence of taxes on alcohol allows you to optimize your margins.

Tip:
Take advantage of this tax advantage to position your alcohol-free wines as premium products while optimizing your margins.

Sales Impact: Clear and compliant labeling is essential to inspire confidence in your customers. Consumers of non-alcoholic wine are often concerned about what they consume. Highlighting information such as low sugar content or health benefits can positively influence their purchasing decision.

The Impact of Legislation on the Sale and Consumption of Non-Alcoholic Wine - Domaine de Brau
Conclusion: Mastering Legislation to Maximize Opportunities

For wine merchants, restaurateurs and distributors, alcohol-free wine represents a unique growth opportunity. But to seize this opportunity optimally, it is crucial to understand the impact of legislation on the sale and consumption of these products.

By mastering the rules of labeling, advertising and taxation, you can not only protect your business, but also increase your margins and attract new customers. Alcohol-free wine, thanks to its regulatory advantages, is positioned as a profitable and innovative alternative for professionals in the wine sector.

At Cypher, we are committed to offering organic and premium alcohol-free wines, compliant with the strictest standards in terms of legislation and labeling. We work with professionals around the world to ensure that our wines comply with local laws while offering an incomparable taste experience.

Don’t wait any longer to integrate alcohol-free wine into your offer and take advantage of the benefits that this growing market has to offer!

Discover our article on the world tour of non-alcoholic wine
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