Tariff row delays alcohol health labels
The introduction of alcohol health warning labels is being delayed due to the trade tariff disagreement with the United States.
The proposed health warning labels are scheduled to be introduced in May 2026, although Tanáiste Simon Harris cast doubt over the timeline
Distributors had concerns increased recently due to Donald Trump, US President, threatening 50% tariffs (a 30% increase) if a deal was not struck by July 9.
The Alcohol Health Alliance is pushing for health warning labels to be placed on alcohol products, similar to what is seen on smoke packaging.
There is a consensus among Irish alcohol distributors that they will be put at a disadvantage against foreign and US retailers as tariffs loom large.
The proposed health warning labels are scheduled to be introduced in May 2026, although Tanáiste Simon Harris cast doubt over the timeline.
Last month, in a press conference, Harris said it was important the Government controlled things it could in a new trade environment.
Since then, Tanáiste and his colleagues have received some backlash over the comments suggesting there will be delays due to the ongoing US tariff dispute.
Vincent Jennings, chief executive officer, CSNA, has reiterated the importance of resolving the issues surrounding the ongoing US tariff negotiations.
Speaking to Drinks Industry Ireland, he said: “A failure to reach an agreement will cause significant difficulties to the Irish drinks industry, particularly for the whiskey producers.
“Tariffs will make our products more costly, providing a competitive advantage to other whisky producers, foreign and US.”
The CSNA CEO is also of the opinion that alcohol health warning labels will only “limit” customers’ choices.
Speaking on the matter, Jennings added: “The health labels are an example of virtue signalling, we will never be able to prove or disprove their effectiveness to consumers but their presence will most certainly restrict range and reduce choice for our customers.”
Pat Crotty, VFI, also reacted to the recent news claiming if Ireland and the US fail to come to an agreement, it would “significantly damage” the competitive position Irish alcohol retailers hold.
Crotty told Drinks Industry Ireland: “The US is a key market for Irish drinks exports, particularly for whiskey and cream liqueurs.
“Any failure to secure a deal on tariffs would significantly damage our competitive position and put pressure on margins across the supply chain.
“For publicans, any disruption to established trade routes or price increases on imported brands could also reduce product range and raise costs.
“The wider drinks and hospitality industries are interconnected – what affects one segment ultimately affects us all.”
Foley does support the introduction of alcohol health warning labels but does concede it is an additional “difficulty” for publicans.
“We support the goal of providing clear information to consumers, but the reality is these measures will have little meaningful impact on consumption patterns.
“For publicans, it’s another signal of a difficult policy environment for the pub trade,” he added.
