Monday, March 10, 2025

Recent science reports suggesting that wine alcohol is usually safe to drink

We are all well aware that back in 2023 the World Health Organization (WHO) published in The Lancet a statement that “no safe amount of alcohol consumption for cancers and health can be established” (Health and cancer risks associated with low levels of alcohol consumption). No evidence was explicitly provided in this publication, but half a dozen references are cited in support of the claims that: “The overall risks and harms resulting from alcohol consumption have been systematically assessed and are well documented.”

I thought that it might be interesting to gather together references to publications that refute these claims, or at least suggest that they are exaggerated; and that is what I have done here and in the next post.

World Health Organization

At first, I will start by pointing out that a reply to the above publication was published in The Lancet a couple of months later (Alcohol and health: all, none, or somewhere in-between?):
The risks and harms associated with alcohol are well documented, and the substantial harms of heavy or binge drinking are not debated. But health benefits of lower levels of alcohol intake have been widely reported. Many studies have shown that low or moderate amounts of alcohol (particularly red wine) can reduce risk for cardiovascular disease, diabetes, and even death — possibly due in part to a tendency to reduce systemic inflammatory mediators. These benefits might be limited to adults older than 40 years ... Potential benefits of light to moderate alcohol consumption have also been reported among patients with rheumatoid arthritis.
Dire warnings like these seem to have become commonplace (a similar statement about alcohol and cancer was issued by the American Society of Clinical Oncology in 2017) and have the potential to be ignored by many people as undesirable and unattainable. WHO correctly argues that no studies have addressed whether the potential benefits of alcohol on cardiovascular disease and diabetes outweigh the risks with regard to cancer, and that the harms of alcohol fall disproportionately on disadvantaged and vulnerable populations. In view of these truths, a why-risk-it approach might seem sensible. But interpretation of the seemingly conflicting reports requires consideration of many factors, including the varying levels of alcohol intake considered light to moderate, competing risk factors for disease, choice of comparator groups, and the known pitfalls of self-reported alcohol consumption. It is also important to put the results of these studies in the context of absolute levels of risk (versus relative risk) associated with alcohol intake, which are generally quite small.
Lancet Rheumatology

So, even at the time, the WHO’s pronouncement was questioned, because it focused on cancer rather than any other health characteristics (of which there are many!). And, of course, alcoholism itself is not good for you, by definition.

However, organizations that advocate for more stringent policies around the sale and marketing of alcohol are gaining momentum (What do neo-prohibitionists really want?). In fact, it has been suggested that the influence is entering US politics (Source says Feds will declare “no amount of alcohol” is healthy). So, we need to take this seriously.

Now we might look at some other publications, that review the topic. These also refer to things other than cancer, and in particular they focus on wine as opposed to other forms of alcohol. I will look at an overview paper here, and then continue next week with some more details.

We should start with defining low (1–7 drinks/week) and moderate (8–21 drinks/week) wine drinkers, as designated in the best of the recent review articles (Moderate wine consumption and health: A narrative review). These researchers note:
Although it is clearly established that the abuse of alcohol is seriously harmful to health, much epidemiological and clinical evidence seem to underline the protective role of moderate quantities of alcohol and in particular of wine on health. This narrative review aims to re-evaluate the relationship between the type and dose of alcoholic drink and reduced or increased risk of various diseases, in the light of the most current scientific evidence. In particular, in vitro studies on the modulation of biochemical pathways and gene expression of wine bioactive components were evaluated. Twenty-four studies were selected after PubMed, Scopus and Google Scholar searches for the evaluation of moderate alcohol/wine consumption and health effects: eight studies concerned cardiovascular diseases, three concerned type 2 diabetes, four concerned neurodegenerative diseases, five concerned cancer and four were related to longevity. A brief discussion on viticultural and enological practices potentially affecting the content of bioactive components in wine is included. The analysis clearly indicates that wine differs from other alcoholic beverages and its moderate consumption not only does not increase the risk of chronic degenerative diseases but is also associated with health benefits particularly when included in a Mediterranean diet model. Obviously, every effort must be made to promote behavioral education to prevent abuse, especially among young people.
So, wine is not the same as other forms of alcohol. If you want to get technical: “the beneficial effects of wine are mostly derived from its polyphenolic content, and this represents the crucial difference between wine and other alcoholic beverages.”

Drink sizes

We also need to get clear what we mean by “a drink”. We might try this definition (Why do medical experts define moderate drinking as one to two glasses of wine per day?):
In the United States, the Departments of Agriculture (USDA) and Health and Human Services (HHS) recommend that men consume no more than two alcoholic beverages per day, and that women consume no more than one. Those U.S. Dietary Guidelines issued by the federal government also serve as guidelines for medical professionals when they define moderate drinking.
However, exactly how much alcohol constitutes one “drink” varies from country to country, as do dietary guidelines. In the U.S., one “drink” is defined as containing 14 grams (0.6 fluid ounces) of pure alcohol, which equates to 12 ounces of beer (5 percent alcohol by volume), 5 ounces of wine (12 percent ABV) or 1.5 ounces of 80-proof distilled spirits (40 percent).
In Europe, a standard glass is often taken to contain 12 grams of alcohol, instead. This is: 50 cl standard beer, 33 cl strong beer, 12 cl wine, 4 cl of liquor (Dags för “alkoholfri operation“ [in Swedish]). By risky use of alcohol these scientists then mean: >14 standard glasses / week for men and ≥5 standard glasses at one time for men, and >9 standard glasses / week for women and ≥4 standard glasses at one time for women. This Swedish paper then discusses how much you should reduce these before hospital operations.

That might be enough science for one week. Next week I will look some more at where those glasses can safely go, according to research.

Monday, March 3, 2025

Search popularity versus the price of Australasian wines

I have sometimes looked at this topic: The relationship of wine price to wine-quality scores. However, that mostly involves the professionals (who provide the scores), not the public (ie. the rest of us). So, today I thought that I might look at web-search popularity of wines, instead. I have previously done this for: The world’s most expensive wines! However, that situation is not for most of us either!

Recently the idea has been raised that Australia and New Zealand might become a single wine zone (Reimagine the border of New World wine regions). Indeed, there is already a joint Australian & New Zealand Wine Industry Directory (2025 Wine Industry Directory released).  So, this might be an interesting topic for looking at search popularity. (I have previously looked at their wine production and consumption: Australia and New Zealand wine comparisons). Are these areas equally as popular for the web searches for their wines?


The article cited above on unification notes:
Given this year’s joint tasting event, the wine industry is curious to see the possibility of Australia and New Zealand becoming a unified wine zone. In the evolving landscape of New World wines, Australia and New Zealand have emerged as prominent players in the New World wine landscape, each offering distinct and high-quality wine profiles. While collaborative marketing efforts have gained momentum, it's essential to understand the unique characteristics that define their wine industries.
To compare the similarity of any two regions, Wine Searcher is a good place to choose data, since it is dedicated to accumulating a database of both the price (see: Average Wine Prices) and the search popularity (see: Wine-Searcher Technology) of wines. It claims to base the data on 240 million searches of its database by consumers each year.

Wine Searcher publishes annual Top lists of its data, and the recent ones of relevance here are:

I have plotted these two sets of data (10 wines for each country) in the first graph, with each wine represented by a point, located with its Search rank horizontally and Average Price vertically.

Australian wine search popularity versus price

As you can see, there are three Australian wines where the price stands out from the main bunch of wines, both Australian and New Zealand. These are: Henschke Hill of Grace Shiraz, Penfolds Grange Bin 95, and Penfolds Bin 707 Cabernet Sauvignon. Otherwise, there is no particular relationship between search rank and price — popular wines for search are neither the cheapest nor the most expensive wines, for either country.

Equally importantly, though, all of the Australian wines are more popular in search terms than are all but two of the New Zealand wines, which are: Kumeu River Maté's Vineyard Chardonnay, and Cloudy Bay Sauvignon Blanc. The Australian wines thus appear to be much better known. This is in spite of The rise and rise of New Zealand wine.

The article about unifying the Australian and New Zealand wine zones does note differences between the two countries:

Australia's wine industry is renowned for its diversity, with climates and terroirs that create a rich variety of wine styles. The country has developed a comprehensive appellation system featuring over 60 designated wine regions, producing wine in every state ... Today, Australia ranks among the world's largest wine exporters.
Renowned for its aromatic Sauvignon Blanc, New Zealand is a leading wine-producing nation, acclaimed for its cool-climate Pinot Noir, Chardonnay, Bordeaux-style blends, and Syrah. Located in the Pacific Ocean, 2,000 kilometres (1,300 miles) southeast of Australia, its 10 major wine regions span two main islands, with Marlborough as the most prominent.
So, Australia is a much bigger and more diverse wine-producing region. Indeed, it has previously been noted that New Zealand should be doing more to emphasize its own unique place in terms of quality (New Zealand Pinot finds its place):
In 2023, New Zealand was the sixth largest exporter of wine in the world by value; by volume it was the 11th. The US remains its number one market, largely due to its thirst for Sauvignon Blanc ... Eric Asimov, perhaps bravely, furthered that New Zealand needs to do more to promote its product and engage more with sommeliers and importers ... He concluded that by promoting its own tremendous story, New Zealand Pinot Noir will then find its place in the world.
On the other hand, it has also been suggest that: The next great Chardonnays are from New Zealand. In particular:
New Zealand has been producing Chardonnay for decades, but quality examples of this wine are on the rise from both islands ... In fact, it was the most-planted variety in New Zealand in the 1990s. Sauvignon Blanc may now rule when it comes to quantity, but the quality of Chardonnay is on its own steep incline.
Interestingly, in self-deprecating style, it has also been suggested that fine wine is perhaps not what New Zealand should be emphasizing (Leading NZ producer to move away from fine wine). Two Felton Road wines are in the list of the top ten most-searched wines (8: Felton Road Bannockburn Pinot Noir; 9: Felton Road Block 5 Pinot Noir). However, their producer has noted:
“The whole notion of fine wine is based around over-priced snobbery,” declared Felton Road owner and vigneron Nigel Greening during a panel discussion at the Pinot conference held in Christchurch between 11–13 February ... From here on, he added, Felton Road is “uncomfortable belonging to the fine wine sphere.”
Mind you, the same article also notes:
Felton Road is no stranger to fine wine. One of Central Otago’s leading producers, it commands impressive prices globally for its organic and biodynamic wines. One of just a handful of producers to make Pinot Noir exclusively from Bannockburn, New Zealand’s latest GI, which became a protected region on 1 February 2022, Felton Road also crafts premium Chardonnay and Riesling from three vineyards in this coveted spot on the South Island.
So, as a conclusion, pay attention from now on — an increase in New Zealand web searches for wines will indicate that you are doing so. But look for the affordable stuff (see US imports here: Can you tell the difference between Australia and New Zealand wine?).

US wine price versus critic score

As a final aside, we could look at the critics scores for the 40 Most Popular American Products (ie. the most-searched-for wines). Here, in this second graph, we can see that there is a very distinct increasing relationship between score and price. Personally, I could not afford any of the wines with scores >91 points. This is not true for either the Australia or New Zealand wines (graphed above), where I could afford most of the wines with these scores.

Monday, February 24, 2025

Current opinions and trends in the US wine market

The wine industry is having a hard time at the moment, what with: Geopolitics, trade wars and Gen Z. After all, according to Gallup Polls (Alcohol consumption increasingly viewed as unhealthy in U.S.): 59 % of 18–34 year-olds admit to drinking alcohol (decreasing continually this century), but 69 % of 35–54 yo (keeping steady), and 58 % of 55> yo. It might thus be time in this blog to stand back a bit, and look at the actual wine drinkers themselves.

Wine lovers are not part of an elite. Not every car driver needs to own a Rolls Royce or a Lamborghini, and not every resident needs to inhabit a roof-top apartment or a cliff-top mansion. Similarly, not every wine-drinker needs to consume an exclusive vintage. These are all status symbols for the rich.

Too much of the wine literature focuses on “the best” (intended for “true wine lovers”), not simply the above-average (The price of exclusivity: how wine lost its everyday appeal). Wine is often made into the star, a thing that people need to revere (“wine speaks to us”), rather than being created simply for pleasure. So, wine is not an elitist pursuit (not status), nor is it an unhealthy one – in both cases provided it is conducted in moderation.

Good wines are not inaccessible to my peers, provided we know where to look for them. The returns will re-pay even a small amount of effort. All we need is that the bottle contents should match the price, and choosing the latter thus chooses the former — the younger people need to be told this, and especially this. Even cheap wine can be interesting, depending on its origin; however, quality does cost money, and must be paid for.

So, now seems like a good time to look at some market trends in the United States wine industry. In the past, consumers have traditionally gone through their 20s into their 30s, and then they have naturally transitioned to wine — this doesn’t seem to be happening now. Mind you, it is repeatedly said that the modern trend is to drink less but drink better.

Average bottle price 2013–2024

That said, we could start with the change in average bottle price 2013–2024, as shown above (from: Sovos ShipCompliant and WineBusiness Analytics 2025):
In 2024, the average price per bottled shipped increased by 6% to a record $51.20. The continued slowdown in the rate of price increases, which declined from 7% in 2023, 9% in 2022 and 12% in 2021, reflects a broader easing of inflation. However, this increase remains well above the pre-pandemic average annual change — we are told that this is preferentially because the volume of sales of cheaper wines is now declining, rather than the more expensive wines are increasing (2024 Beverage Alcohol Year in Review).
Sales growth of premium wineries 2000–2024

That said, we can also look at the sales growth of premium wineries 2000–2024, as shown above (from: Silicon Valley Bank State of the US Wine Industry Report 2025). This shows a distinct downwards trend, indicating that even the expensive wines are selling much worse, through time. There have been, however, two distinct dips and one peak.

What we have is an obvious set of evolving social norms (What if we didn't turn into our parents?), and a growing focus on health and wellness, rather than on the fanciness of the wine itself. We can see this by looking at various parts of this report: Colangelo Partners U.S. Wine Market Trends and Challenges. I will do this now.

Wine’s effect on health and well-being

We can start by looking at what people think about wine’s effect on their health and well-being, for the different age groups, as shown above. Wine is seen to have a notable effect for all groups, but it is the oldies (my group!) who detect the biggest effect, especially on their well-being.

What parts of health does wine affect

Looking in more detail, we can see what these effects are thought to be, as shown above, for the three groups. Apparently wine is not really part of a healthy diet, although it has been historically important, and it does go with food (wine is always best consumed with food, otherwise you risk becoming an alcoholic). The older people are apparently much more amenable to wine consumption.

Participation in Dry January

In terms of actions, the younger people do express their intent to participate in Dry January, and have done so in the past, as shown above. The older groups are much less keen (and I would definitely fit into my oldest age group). By comparison, apparently 55% of a survey of French consumers declared a willingness to abstain from alcohol in January, but ultimately only 18% declared that they had succeeded (The growth of NOLO in France). There are, of course, good reasons for not drying out your January (Yes, you can drink without guilt).

Response to WHO guidelines

More seriously, some people have taken the recent WHO guidelines earnestly, as shown above, especially among the younger people. We older people, of course, do not (Harvard researchers and leading statistician stand up to the WHO), and things are not so simple (The complex case of moderate drinking). However, as Louis Pasteur famously noted: “Wine is the most healthful and most hygienic of beverages.”

Other risks for health

Finally, it is worth noting other risky behavior apparently carried out, for the various age groups, as shown in the table above. It seems to me, given this, that wine is the least of their likely health problems. Eating junk food cannot be good for you; and coming from Australia, as I do, we know to put on sunscreen, or at least wear a hat (the sun is a bigger cancer risk than either red or white wine: Red vs. white wine: New study finds little difference in overall cancer risk).

Australian Akubra hat

Anyway, that is what some of the opinions in the wine market in the USA look like just now. Interest in wine is declining (Wine sales slipping in US as more Americans leave alcohol behind); and at the entry level, quality wines are disappearing (The cost of premiumisation). Younger people have also been starting to look more closely at ready-to-drink (RTD) concoctions based on wine (The wine-based RTDs we are too embarrassed to talk about).

We have also apparently been failing to communicate that we enjoy wine (Rediscovering the fun in wine), except perhaps through the non-educators on TikTok or Instagram (The role of wine influencers). Instead of Dry January, we have Come Over October and Share & Pair Sundays. Or, as the French campaign of 1933 noted: “Drink wine, live joyfully”. Moreover: Wine industry leaders look on the bright side; and indeed the 2024 California Grape Crush Report shows the lightest crop in 20 years, which will help address the current over-supply of U.S. wine.

Given all of this, we have apparently been making too much wine for quite some time, but we have only recently woken up to this idea (The 2025 wine industry wake-up call). We need to either reduce vineyard area or create wine demand (eg. Young adults find restaurant wine lists uninspiring). Not only do younger people tend to drink less than older ones, they lean toward lighter wines, they buy less for status and more for taste, and they are more open to new products (Year of the Snake bites for China wine).

We could perhaps take a hint from the Champagne houses, which have focused on making and offering products that their target consumers will enjoy and want to buy again, rather than trying to educate consumers about wine as a complicated accompaniment to food (Robert Joseph). That is, we need to see the importance of embracing curiosity and telling the story of wine (Alecia Moore: Pink). We also need to refocus from the concept of physical health to one of emotional wellness — from wine we get flavor, enjoyment, culture (With its health halo dimmed, wine needs new ways to win over drinkers). Hint: make consumers smile and they are more likely to engage with your brand (Tim Akin). All of these points were emphasized and amplified at the recent Unified Wine and Grape Symposium (Stressed and worried, young people need wine).

So, as a finish, this might also be “an opportune time to talk to buyers and experts about what they think wine, and wine enjoyment, might look like in the next 50 years” (The future of wine: what might the next 50 years have in store?). Presumably, given the interest shown above in diets, one of the most obvious innovations will be ingredient and nutrition labels for wine, as in the European Union (Notes of...fish bladder?!) and increasingly in the USA (Wineries promote transparency by adding ingredients lists). More seriously, some countries either already have cancer warnings or are considering them (Should Australia mandate cancer warnings for alcoholic drinks?).

Monday, February 17, 2025

Recent study shows that alcohol does have an important benefit in older age

This post is about alcohol, dementia and old age. There is a new research report that concludes that the occurrence of dementia is the lowest among people with moderate alcohol consumption, and the risk is higher among those who never drink or who drink excessively.

But, to set the scene, my wife spent a Monday recently in a hospital, being examined some of the time, but mostly just sitting there waiting (I kept her company). I then did exactly the same thing myself on the Tuesday (and she accompanied me). In my wife’s case they said: “It will be okay”, and so far they have been right. However, in my case they gave me some pills to take 3 times per day, every day for the rest of my life. These are the outcomes of getting older — back in the old days we didn’t make it, to get any older, but these days we slowly undergo physical and mental degeneration for quite a long while.

In this regard, old age is acknowledged to be the most important predictor of the syndrome known as dementia (a general decline in cognitive abilities affecting one's ability to perform everyday activities). Therefore the number of people living with this condition is expected to grow, along with the number of old adults. It should be obvious, then, that detecting this as far ahead as possible will help us (family, friends, colleagues, community, society) cope with the situation as best we can.

Rand logo

To this end, a recent report appeared:

Identifying early predictors of cognitive impairment and dementia in a large
nationally representative U.S. sample. Rand Research Report 2024 RR-A3207-1

It’s relevance to us in this blog should be obvious: alcohol is often implicated in cases of dementia. Well, this report makes it clear that alcohol does indeed play a potential role, but not in the way you may have suspected — there is good news aplenty.

Let’s start with what this study is, since we know that it is not a scientific experiment. It is simply a survey in which people answer questions and are measured in various ways. So, it is the quality of the surveying that matters, in terms of its size and how well it represents the intended population. According to the authors:
The data for this study come from the Health and Retirement Study (HRS), a United States nationally representative, biennial longitudinal survey of adults over age 50. The first wave was conducted in 1992 with a target population of the cohorts born in 1931 through 1941. Older cohorts and a younger cohort (born in 1942 through 1947) were added in 1998 [cohort = wave], so that the 1998 study represented the population born in 1947 or earlier. Since 1998, refresher cohorts of 51- to 56-year-olds have been added to the HRS every six years to maintain a population representation of adults ages 51 and older. The sample includes about 20,000 individuals per wave; more than 45,000 individuals have participated in the HRS since its inception.
This sounds pretty darned good to me — better than most such surveys. Their objective is clear:
In this report, we aim to identify predictors of dementia and cognitive impairment for individuals in the United States up to 20 years in advance using the cognition and dementia measures from the Health and Retirement Study (HRS).
So, the HRS already has within it “a validated probabilistic measure of dementia and cognitive impairment that was developed in prior research”, so that each person has been evaluated for cognitive ability. The HRS then:
allows us to evaluate the predictive power of many potential dementia risk factors, such as demographics, socioeconomic status (SES), labor-market measures, lifestyle and health behaviors (such as exercising and smoking), subjectively reported and objectively measured health, genes, parental health, cognitive abilities, and psychosocial factors (such as personality traits, social activities, and loneliness). We estimate how these factors predict cognitive impairment and dementia of individuals two, four, and twenty years after age 60.
The factors studied for relating to dementia.

So, that idea should be clear, from this here figure. The authors used their fancy univariate and multivariate analyses to try to work out how each of 181 potential risk factors, measured now, relates to developing dementia at a later age: “dementia prevalence among persons approximately age 80 according to their observed characteristics when they were about age 60”.

The report itself is quite readable, and you should consult it if you are interested in learning about all of the relevant factors they detected. For example:
In terms of explained variation, an individual’s baseline cognitive abilities, health, and functional limitations were the strongest predictors of dementia, whereas parental health, family size, marital history, and demographics were the weakest ones.
However, here we are interested in alcohol, which does make a suitable appearance:
Alcohol consumption is also predictive of dementia incidence; the incidence and prevalence of dementia are the lowest among those with moderate alcohol consumption, and the risk is elevated among those who never drink or who drink excessively. We found the same patterns in both sex groups and in all three dementia models that we considered.
This remarkable observation is shown in the next graph. This graph shows the males in the left pair of graphs and the females in the right pair. The top pair shows the effect of moderate exercise, for comparison, and the bottom pair shows the effect of alcohol intake. Each individual graph shows five possible situations (horizontally), and the rate of dementia associated with it (vertically).

Effects of exercise and alcohol on dementia.

So, to take exercise for men, as an example you should be familiar with: as the incidence of exercise decreases from left to right, the incidence of dementia increases. Or put around the other way, as exercise increases dementia decreases. You do not have all be told that exercise is good for you, but here it is one clear example.

Now look at alcohol. For both men and women, the highest incidence of dementia is among people who do not drink alcohol at all. For both men and women, the lowest incidence of dementia is among people who do have only one drink (or a couple of drinks) at a time. However, further increasing alcohol intake beyond this does increase the incidence of dementia — remember, five drinks at one time is a whole bottle of wine!

So, what people have been saying for years, that a little bit of alcohol is good for you, actually turns out to be true in this study.

The authors are moderate but clear:
Alcohol consumption is predictive of dementia incidence; the incidence and prevalence of dementia are the lowest among those with moderate alcohol consumption, and the risk is elevated among those who never drink or who drink excessively. We found the same patterns in both sex groups and in all three dementia models that we considered ... The lifestyle and health behavior predictors are noteworthy because they are modifiable risk factors and can be controlled by the individual.
Based on their whole analysis, they note:
We found strong associations between the outcomes and several modifiable risk factors. Therefore, our results suggest that there might be scope for slowing cognitive decline and dementia among at-risk people through behavioral changes and interventions. Such lifestyle modifications could be achieved by individuals taking the initiative to make such necessary changes, and public policy could also play an important role.
Our results suggest that it might be beneficial for maintaining cognitive health to exercise at least sometimes, even if it is only light physical activity, such as walking. Consuming alcohol in moderation, working longer, and engaging in hobbies and novel information activities after retirement are also associated with a lower risk of developing dementia. Similarly, maintaining good physical health is associated with reduced dementia incidence, which suggests that adopting a healthy lifestyle might be beneficial not only for general health but also for brain health ...
All these findings point toward the importance for policymakers and other stakeholders to promote healthy behaviors in the population and to strengthen individuals’ access to quality health care.
To this latter end, getting the bureaucrats’ alcohol-consumption ideas right is important. It seems that the World Health Organisation, and a number of other national and international bodies, have not yet got it right, as they have recently come out strongly against alcohol. The basic issue is that we cannot do proper scientific experiments (where we manipulate people’s behavior) to study the relevant social situations critically. All we can do is look at large databases, of which the one discussed here seems to be an important one.

Monday, February 10, 2025

The WHO is making a mistake about state-owned alcohol retailers

Last week, the World Health Organization (WHO) released a new report:
Nordic alcohol monopolies protect public health
This continues the current WHO anti-alcohol campaign, apparently heading back towards the days of Prohibition, or something like it. Their online announcement will give you an idea of their tone:
WHO has released a new report highlighting the Nordic alcohol monopolies as an effective model for reducing alcohol consumption and harm. Unlike commercial alcohol sales systems, these state-owned monopolies operate with a public health mandate, restricting availability and limiting the influence of private profit interests. Countries like Finland, Iceland, Norway, Sweden, and the Faroe Islands have maintained relatively low alcohol consumption levels, despite being part of a region historically known for heavy drinking and related harms.
So, their basic point is that retail alcohol monopolies can be an effective way to reduce alcohol consumption and harm. By removing the private profit motive of sales, monopolies often have:
  • fewer outlets
  • shorter hours of sale
  • no advertising and promotion.

Cover of the report

I should comment on this because I seem to be the only person regularly blogging about the wine industry, and who actually has personal experience of a state-owned Nordic / Scandinavian alcohol retailer. Also, I should compare this with the situation in the USA and Canada.

The WHO claim is that they have compiled some data that support their current agenda against alcohol. One example is shown in the graph below, looking at alcohol per capita consumption (APC) in the various countries. The Nordic countries have smaller APC than most of the other European countries.

However, the WHO have not looked at how the “government monopolies” actually behave, in practice. They may once have behaved the way WHO imagines, but that was decades ago. My own experience is of Systembolaget in Sweden, for the past quarter of a century (I also have experience of Australia), where the Swedes are dedicated to providing excellent customer service.

My own personal experience of Systembolaget includes:
  • it is not closely supervised by the government, but acts as an independent retailer that just happens to be owned by the government (eg. it has recently expanded its opening hours)
  • if you can import it then they will sell it, although you may have to order it (and wait a few days for delivery) rather than them always stocking it on their shop shelves
  • if you can pay for it then they will sell it to you, unless you are clearly intoxicated at the time or are under-age
  • they have plenty of easily accessible shops
  • only when the importer runs out does supply of a product end.
Systembolaget currently lists as being available nationally: 15,251 wines, 4,067 beers, 5,272 spirits, 419 cider etc, and 170 alcohol-free drinks. This is hardly a limit on supply, for a country of 10.5 million people.

I have written quite a few blog posts on this situation, including the following:

An explanation of the situation:
Why are there wine monopolies in Scandinavia?
Product availability:
Wine monopolies, and the availability of wine
The availability of wines in government-owned retail monopolies
The availability of older wine vintages in Sweden?
The prices of alcohol:
Why is wine often cheaper in Sweden than elsewhere?
Is Scandinavia currently the most attractive wine export market?
Availability of alcohol from elsewhere within the European Union (EU):
Sweden is not actually restricted to a government alcohol retail monopoly
Similarity to alcohol availability elsewhere in the world:
Why does the world have Three-Tier systems for alcohol supply?
Not everything is necessarily perfect, of course:
My annoyances with my alcohol monopoly

Alcohol consumption per person in Europe

While on the point of alcohol sales in the rest of the EU, looking at the above graph, I would ask the obvious question: what about Croatia, Malta, Cyprus, and especially Italy and Greece? It is not like these countries don’t produce lots of alcohol, including wine, beer and spirits, and sell them both nationally and internationally. The locals apparently consume less alcohol per person than the Nordic countries, according to the graph, without government ownership of retail. Also, Denmark should be noted in this list as a Scandinavian country, but their government does not own the alcohol retail.

More to the point, there was a research report published last year (Classifying national drinking patterns in Europe between 2000 and 2019), which looked at drinking patterns within the different countries of Europe four times this century, and the changes in drinking behavior during that time make a mockery of the one-time-only analysis of the WHO.

Finally, this whole issue undervalues the fact that, as alternative examples, both the USA and Canada also have states and provinces with partial or complete government ownership of alcohol retail. This is mentioned in the report as an alternative to Prohibition but not elaborated upon; and it hardly differs from the Nordic countries.

For Canada you can read: Alcoholic drinks in Canada. For the USA, you can read Alcoholic beverage control state, which lists the relevant states:
Alcoholic beverage control states, generally called control states, less often ABC states, are 17 states in the United States that have state monopolies over the wholesaling or retailing of some or all categories of alcoholic beverages, such as beer, wine, and distilled spirits.
Mind you, the United States continues to be the top global market for wine consumption, and for the USA there is pressure on the current retail situation:
Retailer DtC wine shipping: the time has come
Poll: NYers want wine in grocery stores
So, WHO’s anti-alcohol campaign seems to have led to some mis-understanding about the real situation among the countries of both Europe and North America. Unfortunately, they may not need to continue their campaign for long, because APC has been decreasing in many markets worldwide, no matter what the retail structure (What’s driving wine’s structural decline?). Nevertheless, Current medical evidence says that wine is not harmful in small doses.

Monday, February 3, 2025

Wine price variation within the European Union

The International Organisation of Vine & Wine usually publishes their State of the World Vine and Wine Sector report in April each year. The 2023 report was pretty depressing in many ways, showing a decline in global wine consumption starting in 2018 and increasing after 2021. The 2024 report is not expected to show anything much different.

Similarly, the Silicon Valley Bank just released its US Wine Industry Report 2025, which noted that “the wine industry is undergoing a significant reset, marking the first demand-based correction in three decades ... While painful to experience now, these shifts may result in a healthier industry with more accessible bottle prices that will attract new consumers tomorrow.” I hope so.

In addition to these reports, there are the upcoming tariff portents of the new US president. These may have global effects in the not too distant future, although perhaps “tariffs on imported wine and spirits are more likely to harm American businesses than businesses abroad” (How Trump’s tariff threats will affect the wine and spirits industry and consumers).

So, as a change from all of this, now might be a good time to have a look at the past and present prices of wine among the states of the European Union (EU), and a few of its allied countries, rather than the USA. The situation is not quite as simple as we might expect or like. 1

EU wine consumption through time

Let's start with a simple look at recent EU wine consumption, as shown above (Annual wine consumption in the European Union). As you can see, it varies quite a bit, but the general trend has been slightly downwards — the 2024 value was only 90% of the 2016 value. The average across the nine years was 100 million hectoliters (2,200 million gallons.

There was a distinct dip during the main years of the Covid-19 pandemic (2020–2021), suggesting that a lot of the consumption occurs in public places such as bars and restaurants, which were being avoided at that time. The unique rise in 2022 looks like a reaction to being safely allowed back into public drinking again. (Compare the USA: Alcohol consumption rises sharply during pandemic shutdown.)

EU alcohol prices per country

Moving on to the different countries, we can look at the alcohol prices for 2020, as shown in the second graph (How alcohol prices vary across the EU) — this is simply a standardized measure with the EU average set at 100. Once again, these values vary quite a lot, with the Hungary price being only 38% of that of Finland.

Of the highest countries, the values for Finland and Sweden include a lot of spirits, which may also be true for Ireland. The wine-producing and consuming countries (eg. Portugal, Italy, France, Germany, Spain) are mostly in the centre of the price list.

The three countries to the right of the main graph are members of the European Free Trade Association, which is why there are data for them. The high price data for Norway and Iceland match those for two of the other Nordic countries (Finland and Sweden), but not the fifth one, Denmark (which matches Switzerland, instead!).

EU wine price changes through time

Moving on specifically to wine, we have Eurostat data for changes in price since 2015, as shown in the table above (Food price monitoring tool). The data refer to Wine from Grapes, showing a Harmonised Index of Consumer Prices, with 2015 set to 100. The data allow us to calculate the change in price for two periods of 5 years each (2015–2019 and 2020–2024 inclusive).

The EU average is at the top, with the countries then in alphabetical order. Note that there are the same 27 EU countries, plus Norway and Switzerland (but not Iceland), and the UK for the first period (when it was in the EU, before Brexit).

Note that there was a much greater (average) price increase in the past 5 years compared to the first 5. I think we all know that prices increase through time at an increasing rate. However, it is worth noting the two decreases in price during the first 5 years (Ireland and Cyprus) – lucky them!

Note also that the top 6 countries in the second list are more than double the average — this is pretty serious. Indeed, the top 10 countries are in eastern Europe (plus Czechia, which is way down). In particular, the poor situation for Croatia has attracted discussion (Croatia ranks first in Europe for wine price increases), although quality is another matter (How this power couple is trying to make Croatian wine world class), as is historical significance (How a 150-year-old grapevine is helping California producers adapt to climate change).

The countries from northern Europe discussed above (Sweden, Norway, Finland) are actually in the middle of this list — as I noted, these are wine prices only, not spirits prices. Also, Ireland, Switzerland and Italy are doing very well (see this video for Switzerland: Countries are struggling to contain inflation, but not Switzerland). Austria has not done much worse in the second 5 years compared to the first, which is unusual within the list (see: Austria bucks (some) trends; however: Austria’s wine exports to fall back in 2024).

It seems unlikely that things are going to get much better. It is, of course, the younger people who are the future, on all continents, but it has been observed that wine is very traditional. So, it has been noted (Leveraging wine sales in 2025):
Amid falling overall consumption in several countries, there is also ongoing debate about how to attract more Millennial and adult-Gen-Z drinkers to wine. Sustainability cues could be important; IWSR research showed a greater proportion of regular wine drinkers in Gen Z and Millennial generations in the US associated organic wine with high quality.
So, there is cause for optimism, if we can just see the potential areas of growth. However, The Wine Economist (Mike Veseth) once noted Kenneth Boulding’s historical point that when the future eventually rolls around it never matches the predictions, it is always unexpected (The future of wine?). So, we shall see what we see.



1 The European Union currently consist of 27 countries. The United Kingdom was in the European Economic Community from 1973, which became the European Union, but then withdrew from the EU via Brexit in 2020 (along with Greenland, an autonomous province of Denmark, way back in 1985). Norway, Switzerland and Iceland have submitted membership applications in the past, but subsequently frozen or withdrawn them; they are, however, members of the European Free Trade Association. Turkey is a candidate EU country (and a member of the OECD along with North America and Australia).

Monday, January 27, 2025

Why does the world have Three-Tier systems for alcohol supply?

The United States of America has a Three-Tier alcohol distribution system, so that each commercial bottle of wine has a producer, a distributor and a retailer; and I cannot see why it is compulsory to have the distributor. Why can’t the producer sell directly to the retailer (or even the consumer), and thus save the consumer a lot of money? It seems to me that the distributor is not absolutely necessary, except to make money.

Now Sweden, where I live, also has a Three-tier system, but people in the USA usually describe it, disparagingly, as having a “government-owned retail monopoly”. Here, there is a freedom of choice for the producer and an importer / distributor, but not for the retailer — the latter is a national chain called Systembolaget, which is wholly owned by, and operated on behalf of, the Swedish government. However, the producer cannot sell directly to the retailer, any more than they can in the USA. So, the two systems are pretty much the same, in practice.

The US system is thus worth looking at here, from the perspective of its similarity to Sweden, and the European Union in general.

EU and USA flags

Now Sweden (and the rest of Scandinavia) and the USA actually created their Three-tier systems for effectively the same reason. Most of the US states (Three-tier system):
chose to become alcoholic beverage control jurisdictions after Prohibition. In these states, part or all of the distribution tier, and sometimes also the retailing tier, are operated by the state government itself (or by contractors operating under its authority) rather than by independent private entities.
By contrast, in Scandinavia the national governments took control of the retail Tier, on the claimed basis of public health with respect to the previous cultural tradition of binge drinking (Why are there wine monopolies in Scandinavia?). So, the influence of the Temperance world was at the root in both cases.

This does not mean that there is much wrong with wine availability in Sweden, almost all of which has to be imported (because of climate constraints), and where there is thus an importer by default. I have noted before that Sweden has a good wine selection (Wine monopolies, and the availability of wine), and that Systembolaget operates without profit motive, so that the wine is relatively cheap (Why is wine often cheaper in Sweden than elsewhere?).

Mind you, beer is freely available in the supermarkets, but not wine or spirits (Sweden is not actually restricted to a government alcohol retail monopoly). In the USA, by contrast, there are apparently 10 states that ban wine sales in supermarkets and 3 that ban beer (Maryland lawmakers clash over lifting ban on beer and wine sales in grocery stores).

It is also worth pointing out that, between countries within the European Union, receiving alcoholic drinks by mail or courier from online shops is perfectly legal (Eurosender). So, I can bypass Systembolaget when I want to, and I have occasionally done so. On the other hand, me sending alcohol as a private individual is another matter, which can depend on the circumstances.

Teetotalism

Now, as I have hinted above, I cannot understand the US Three-Tier System for alcohol, as I cannot believe that Americans see this system as free trade. It clearly favours large retailers over smaller ones, as they get bulk discounts; and it also favours large wholesalers / distributors. The only exception to this, called Direct to Consumer, apparently accounts for less than 5% of sales by dollar, and almost all of these sales are for domestic wine (see also: DtC wine shipping in 2024: a year-in-review). [Note: Sweden is allowing farm sales of alcohol from June 1. Hurray!]

In the case of US wholesalers, there has been a major consolidation over recent decades. It has been noted (America’s incredible shrinking wholesale landscape):
The current wholesaler landscape is far different than it was 25 years ago. In 1995, at the beginning of the US wine boom, there were about 1,800 U.S. wineries and some 3,000 wholesalers. In 2023, there were almost 12,000 wineries and only about 1,000 wholesalers. That translates to staggering market share numbers, according to the annual Impact Databank report (which includes spirit sales, but doesn’t include beer): No. 1 Southern Glazer’s and No. 2 RNDC with a projected 53% of the market in 2024, and the top 10 companies with a projected 81.5%. That compares to some 72% for the top 10 in 2017.
This situation has all sorts of consequences. For example in politics (Follow the money: alcohol campaign contributions the last election cycle):
Wine, beer, and spirit wholesalers contributed over $17,000,000 to state-level candidates and causes in 2023 and 2024. This is more than double the entire rest of the alcohol industry combined. The explanation for why alcohol wholesalers contributed far and away more than the rest of the industry is explained by the fact that wholesalers, supported and protected by the three-tier system, have the most to lose through reform. The entire goal of wholesaler giving is to block any and all reforms to the three-tier system, and keep the alcohol flowing almost exclusively (and by legal mandate) through the wholesalers in each state.
There is also the problem of staff concentration (Giant US distributor sheds staff):
The news that Southern-Glazers (SGWS), the biggest wine distributor in the US, with a market share of over 50%, has laid off around 3,000 of its staff, including a large proportion of its fine wine and craft division, has sent shock waves through the US wine industry.
Clearly, consolidation can ultimately cause the actual market to shrink, as well, because of decreasing customer choice (Adapt or fade: the critical turning point for wholesalers).

Alcohol distribution

Moving on to retail, non-Swedes sometimes rant about the fact that Sweden has a single government—mandated national alcohol retailer. But Swedes clearly get a better deal than the American system of two large wholesalers controlling nearly 50% of the alcohol market, because Systembolaget acts as both a large and a specialist retailer, simultaneously, since it does not act out of any form of profit motive (as described above).

In the US case, we would expect the wholesalers to rely, for volume sales, on a handful of big supermarket chains and a very few other big retailers. In particular, we would expect that the wholesalers would extend significant discounts to those gigantic chain retailers that buy large volumes of wines, beers and spirits. Indeed, the existence of this situation has recently been tackled by the US Federal Trade Commission, which is claiming in a lawsuit that this violates the Robinson Patman Act of 1936 (The Fed's lawsuit against wine wholesalers can’t fix the problem). With a legal outcome either way, it has been pointed out that You’re about to hear more about the evils of big alcohol, because alcohol harms are primarily a consequence of the alcohol industry pursuing profit.

We would also expect some sort of alignment between the biggest wholesalers and the biggest wine brands. In this case, it has been reported that the US wine market is clogged with thousands of brands that are proving hard to sell (US distributors awash with wine).

Finally, there is this business of on-line sales. Apparently, we need to understand Why Gen Z isn’t buying wine online. Clearly, these people are the future of US retailing, and the Three-tier distribution system is showing its limitations. The younger people apparently prefer strategic influencer partnerships and precision–targeted marketing (Investing in social influence: 44% of Millennials and 52% of Gen Z were influenced by social media when it came to wine purchasing). This may represent a paradigm shift, particularly with Gen Z and Millennials gravitating towards non-alcoholic drinks.

Wine retail

Finally, I cannot believe that US states still differ in whether Americans can buy from within other states than their own. [Note: Canada apparently has the same issue between some provinces.] As I noted above, I can buy from anywhere in the European Union, equally, which is between countries (the so-called Schengen zone). The European Union apparently is more united than the United States! So, it is good to see that just released was the: First-ever white paper on interstate wine retailer shipping.

As far as wholesale is concerned in the USA, Southern Glazer’s operates in only 45 states plus DC, while both RNDC and Breakthru Beverage operate in only 34 states plus DC (these are the top three companies by dollar). To a European this seems rather limited. Furthermore, there are still states that continue to block DtC shipping of wine (Where DtC wine shipping is still limited in 2025).

I should end by noting that the US is not necessarily alone in its behaviour. For example (Devil’s Advocate):
If you want to sell in the UK, there’s a limited number of importers, agents and wholesalers who rely, for volume sales, on a handful of big supermarket chains and a very few other big retailers.

Monday, January 20, 2025

Under-age alcohol drinking in the modern world

A couple of weeks ago I wrote about the health effects of alcohol in wine, based on the amount consumed, which is a hot topic at the moment (Current medical evidence says that wine is not harmful in small doses)

However, there is another aspect to this topic, which is the age at which you start that alcohol consumption. Most countries set a minimum age limit, and wisely so, for basic health reasons. I will look at this topic here, because it has enormous potential consequences for young people and those responsible for them.

The Winston HIlls Hotel

I started going to the pub (Australia = tavern or saloon) at age 17, which was my last year of high school (1975). In Australia, the legal minimum age for alcohol consumption is 18 years, but we looked 18 and no-one ever asked us for ID. My mates drank beer, sometimes getting drunk and hanging out the back of a station wagon groaning. I drank non-alcoholic lemon squash, because I was driving my mother's car (yes, I could get a driving licence at 17), and I knew the consequences of drink-driving — my home state of NSW had a blood-alcohol limit of 0.08 for drivers (it was dropped to 0.05 in 1980, and random breath testing began in 1982; see: A long and bumpy road to RBT).

Now, worldwide, 18 years is the most common minimum age for alcohol consumption (see: Legal drinking age, which has a table and a map). By contrast, the United States of America sets 21 years, instead. This potentially makes things very difficult for them, if regulators and community groups want to do something about ensuring that this limit is adhered to.

Now, places like Australia and the USA have been very different from places like France. We are told that (20% of French teens have never tasted alcohol):
   In the mid-19th century, French adults probably drank a bottle of wine a day, and in the 1950s, eight-year-olds were served a small glass of wine with lunch in some school canteens.
   However, drinking wine is no longer à la mode in France, or at least not like before ... Older people are likelier to drink wine than younger generations, who drink less anyway. In 2002, 4.5% of French 17-year-olds had never tasted alcohol, but by 2020 that figure had risen to 20%.
Things have also changed in a similar way in Australia as well (Gen Z shapes future of wine innovation):
   In Australia, the drinks analyst firm found that the proportion of legal drinking age (LDA) consumers up to the age of 24 who consumed wine on a monthly basis halved between 2010 and 2023.
   Not only are Gen Z consumers exploring non-traditional wine formats, but their consumption habits are also significantly different to earlier generations, with their moderation of alcohol consumption driving no- and low-alcohol (NoLo) growth.
French school 1951

So, if we are considering young people and their drinking of alcohol, then we do need to concern ourselves about under-age drinking. After all, we are told that alcohol is the most common “drug” used by people younger than 21 in the United States (About underage drinking) (and their wine suppliers would therefore be “drug pushers”!).

If you want some statistics about this topic in the USA then you can consult:Indeed, there is currently lots of activity in the USA. The Interagency Coordinating Committee on the Prevention of Underage Drinking (ICCPUD) has just released the second of its two reports, Scientific Findings of the Alcohol Intake & Health Study — this has not been without severe criticism (New U.S. alcohol report tainted by bias, conflicts). Furthermore, the National Association of Wine Retailers has released a proposal for new guiding principles (Modernizing Alcohol Regulation).

Stop underage drinking

So, if we are going to discuss alcohol consumption among younger people then we could focus on Preventing underage drinking with community strategies. This reference notes that there are plenty of proven strategies that help young people, with less pressure to drink, and the support of their family and friends.

However, it is online sales that seem to be potentially an increasing problem in the USA and elsewhere (Wine e-commerce market to grow by USD 15.18 Billion (2024-2028), driven by rising online shopping preference):
   The market is estimated to grow at a CAGR [compound annual growth rate] of 9.46% during the forecast period. Increasing preference for online shopping is driving market growth, with a trend towards increase in purchases of alcoholic beverages by minors.
   The global wine e-commerce market faces a substantial challenge with underage purchases of alcoholic beverages, which can negatively impact market growth. According to the International Alliance for Responsible Drinking, underage drinking is a major public health concern, affecting over 200 million youth globally and costing the economy over USD400 billion annually.
   In the US, around 30% of online wine retailers lack age verification procedures. To mitigate this risk, wine sellers and retailers are implementing age verification software and third-party services. However, these solutions can be costly, making it a significant challenge for smaller producers and retailers. Therefore, addressing underage purchases is crucial for the growth of the global wine e-commerce market.
On the other hand, it has also been reported that under-age drinking has actually dropped recently (Direct-to-consumer shipping and underage consumption):
   Underage drinking across all demographics has fallen to historic lows, according to the 2022 National Survey on Drug Use and Health, as described by the anti-underage drinking advocacy organization Responsibility.org. Per the survey, rates of 12th graders reporting that they consumed alcohol within the last month declined 35% since 2014, and those reporting consuming any alcohol within their lifetimes declined 20%. Since the 1990s, these rates have decreased by much more.
   Yet, opponents of DtC shipping of alcohol, including neo-prohibitionists and wholesaler trade organizations, continue to allege that underage consumption will increase if DtC is at all expanded.
DtC

So, the basic issue is apparently direct-to-consumer alcohol sales. After all, it was way back in June 2005 that the U.S. Supreme Court’s Granholm v. Heald decision opened up direct-to-consumer wine shipping, which is now legal in 47 states.

Furthermore, Alcohol advertising is now allowed on TikTok in the USA, which could be very important (How TikTok could transform the wine industry):
   TikTok is an important — if not the most important — platform for the next generation of buyers ... According to Backlinko, 25% of TikTokers are aged 18-24, while 30% are 26-35. That makes it the perfect platform for anybody who wants to engage emerging wine drinkers who have reached legal drinking age ... And there must be no targeting of underage drinkers.
Mind you, TikTok is hardly in the favor of US politics just at the moment (Supreme Court says TikTok can be banned in the US).

So, while in markets like the USA, the United Kingdom, and Australia, it is Millennials (currently 29—44 years old) who have been the most engaged demographic, driving  demand for organic wine for example (natural wine is no longer just a passing fancy), it is Gen Z (currently 16—28 years old) who are the future.

This is not looking too good for the wine industry in the USA (Young, sober, and ready to party: the rise of Gen Z's booze-free nightlife). As Jeff Siegel noted (being interviewed by Tom Wark): “the younger consumers surfing the Internet don’t look for wine the way their parents and grandparents did. They aren’t interested in wine, so they don’t look for reviews and scores and so forth ... There are just a lot of older people, mostly men, writing about wine on-line, and who are read by a smaller and smaller audience.”

However, if Gen Z backs off on alcohol consumption (Alcohol consumption increasingly viewed as unhealthy in U.S.), then there is little social impetus for under-age people to consume it either. So, there may be one good thing about declining alcohol consumption, after all.