Geographical Indication Protection of Spirits – What That means?

Geographical indication protection is a sign used on products with a specific geographical origin and possesses qualities or a reputation due to that origin. A sign must identify a product originating in a given place to function as a GI.¹

Sometimes, Geographic Indications and Trademarks are believed to have the same meaning and protection, but that is not the case. Even if they are intended to specify the uniqueness of products, their implementation is different.

• Trademarks
  • Trademarks inform consumers about the source of a good or service. They identify a good or service as originating from a particular company. Trademarks help consumers associate a good or service with a specific quality or reputation based on information about the company responsible for producing or offering it.

• Geographical indications
  • Identify a good as originating from a particular place. Consumers may associate a good with a specific quality, characteristic, or reputation based on its origin.

A trademark can be assigned to anyone or any company; the GI is associated with a geographical place.

Another term, and sometimes confusing, is “Appellations of origin,” which seems to have the same meaning as GI. But is it the same, and what is its purpose?

Appellations of origin are a special kind of geographical indication, and they refer to products connected with a place.

Consumers may associate a good with a certain quality, characteristic, or reputation based on its place of origin.

According to Article 2 of the Lisbon Agreement, it is defined as:

… the geographical denomination of a country, region, or locality, which serves to designate a product originating therein, the quality or characteristics of which are due exclusively or essentially to the geographical environment, including natural and human factors.”

Rakia as new spirit designation

Currently, under European regulation, there is no such thing as rakia. One of the terms used is “wine spirit,” a definition of which is:

Wine spirit
(a) Wine spirit is a spirit drink which meets the following requirements:
(i) it is produced exclusively by the distillation at less than 86 % vol. of wine, wine fortified for distillation or
wine distillate distilled at less than 86 % vol.;
(ii) it has a volatile substances content equal to or exceeding 125 grams per hectolitre of 100 % vol. alcohol;
(iii) it has a maximum methanol content of 200 grams per hectolitre of 100 % vol. alcohol.
(b) The minimum alcoholic strength by volume of wine spirit shall be 37,5 %.
(c) No addition of alcohol, diluted or not, shall take place.
(d) Wine spirit shall not be flavoured. This shall not preclude traditional production methods.
(e) Wine spirit may only contain added caramel as a means of adjusting the color.
(f) Wine spirit may be sweetened in order to round off the final taste. However, the final product may not contain
more than 20 grams of sweetening products per litre, expressed as invert sugar

https://eur-lex.europa.eu/

Fruit and Marc brandies have similar definitions. While I have no problem with the technical classifications of the distillates, I wonder how one of the oldest spirits in the history of the world is not recognized as a separate spirit category.

I know that Bulgaria tried to apply for recognition of a particular style of rakia (wine spirit) as a traditional drink in 2011, arguing the benefits of the recognition to the local economy and highlighting the history of rakia.

While I understand the benefits for the producers and consumers by implementing lower excise duty per litre of brandy, the main argument should’ve been made on behalf of the countries in the Rakia Belt. They could’ve insisted on recognizing the spirit as a separate category by presenting a united position, using the history and the region’s traditions.

The rakia should not be confined or belong to one country; it is a style of distillate under which many other categories (wine, marc, fruit spirits) should fall.

That will put rakia on the same level as whisky(ey), gin, vodka, or rum. It will finally gain the recognition it deserves and change the negative perception around the world of being a “fiery water.”

Here is how the current designation of wine and fruit spirits based on the European Commission database is classified, which I believe, with one minor change, can be redefined as rakia being the umbrella of all of them.

Currently, we have:

• Wine spirits
• Marc spirits
• Fruit spirits
• Fruit marc spirits

All of them can keep their definitions, but under the group of rakia, it will make it much easier for consumers to associate the variety of the distillates with a style of drink, not being connected with a particular country. The different regions can still keep using their locally recognized names as part of the label under the umbrella of rakia.

The above ideas are based on the premise that the producers want to elevate the status of wine and fruit spirits to the level of vodka or whisky and have this spirit be recognized as a style of distillate—more on rakia distillation.

Benefits of Geographical Indication Protection

The primary reason producers might be using GI on their labels is marketing. In the highly competitive and saturated beverage market, any perceived advantage should be used and implemented in their strategy for expansion and maximizing sales.

The other reason is consumer behaviour. Consumers are paying more attention to the place of origin, the specific characteristics, and their perceived superiority in qualities other competitors might not have.

Brand recognition and the demand for it allow the producers to charge more, taking advantage of the consumers’ willingness to pay more for something they believe has superior quality.

The key here is “belief”; people usually buy products based on beliefs, perceptions, feedback, and peer pressure. The Geographical Indications can help distillers and anyone involved on the production side establish brand/origin recognition and make better sales than the other competing spirits.

I have to mention one thing: being part of a designated GI place and hoping to use it to generate more sales without having a good product might work for a while, but eventually, the consumers will stop buying it. Everyone working in marketing knows that for every dollar spent on attracting customers, they have to pay ten times more to bring them back if the consumers are disappointed with the product or services.

Looking at the European Commission GI regions designated for wine and fruit spirits, we can see that a significant, well-established, shed, long tradition in rakia-making countries is missing.

Albania, Bosnia and Herzegovina, Montenegro, and Serbia are all missing. Whether they applied for GI or were denied by the EU, I’m not sure, but the fact is that none of their products are listed doesn’t make them any worse or inferior; it just makes it harder for the producers to reach consumers new to the wine and fruit spirits (rakia) market.

The information below is based on the European Commission database for Geographical Indication (GI).

3 Records – Austria Geographical Indication (GI)

12 Records – Bulgaria Geographical Indication (GI) of Rakia

1 Records Cyprus

8 Records – Germany

5 Records – Greece

15 Records Hungary

25 Records – France

25 Records – Italy

14 Records – Portugal

9 Records – Romania

2 Records – Slovenia

1 Record – Spain

1. https://www.wipo.int/geo_indications/en/