Exclusive Australian jurisdiction clause upheld despite unanswerable claim

The High Court* has refused to override an exclusive Australian jurisdiction clause in a UK distribution agreement despite the distributor’s allegedly unanswerable claim. Under an agreement between a UK distributor (D) and an Australian supplier (S)  for a minimum term of 3 years, the parties agreed to submit to the exclusive jurisdiction of the Australian courts.  After only a year, once D had built up some decent … Continue reading

So farewell then, 90 day payment terms?

The 2011 EU Directive on “combating late payment in commercial transactions” is the EU’s second attempt at solving the perceived problem of late payment in the EU.  It is intended to reduce economic loss to suppliers, particularly SMEs.  It was implemented in the UK by the Late Payment of Commercial Debts Regulations 2013  and applies to contracts made on or after 16th March 2013. The main effect … Continue reading

UK distribution agreements – is there a duty of good faith?

The question whether English law does, or should, recognise an implied duty to perform contracts in good faith has been much debated.  In a recent High Court case*, the Judge held that the answer is still no, but that performance of obligations under a commercial contract could be deemed subject to a requirement of good faith where that is necessary, in the context of the particular … Continue reading

Tobacco-style health warnings for Aussie wine?

The Drinks Business reports that Australian lobbying groups have called for wine, beer and spirits to carry graphic, cigarette-style, health warnings on a mandatory basis, in place of the current voluntary system.  WFA says it will make the Aussie wine industry “an international laughing stock”.   But is it merely the thin end of the wedge?  Is plain packaging for alcohol waiting in the wings?

Is wine good for your health? EU thinks not

The European Commission has updated its online Register of Health and Nutrition Claims, which catalogues applications for permission to say that a particular food or ingredient, is beneficial to health or nutrition – such as “low fat”, “high fibre” or “reduces blood cholesterol”. No such claims at all, sadly, are currently allowed in relation to wine.  Two wine-related applications are recorded, both concerning the allegedly beneficial … Continue reading

Brazilian wine producers back off under EU pressure

Representatives of European wine-producing countries are heartily congratulating themselves on having persuaded Brazil to drop proposals to safeguard its domestic wine industry from foreign imports, which were seen as a tad protectionist. In return for its wine producers withdrawing their demands, the Brazilian Government has agreed a comprehensive and ambitious plan with them to boost the country’s wine industry.  It includes a commitment to increase per … Continue reading

Plain packaging for tobacco – the thin end of the wedge for the alcohol sector?

The Australian Tobacco Plain Packaging Act 2011 imposes significant restrictions upon the colour, shape and finish of retail packaging for tobacco products, and prohibits the use of trade marks other than to a limited extent.  Brand names must appear in a standard size, font and location.  Embellishments on cigarette packs and cartons are not allowed.  Packs and cartons must be rectangular, have only a matt finish, … Continue reading

UK minimum pricing plans put on hold … thanks to Bulgaria

Fearing the impact that Scottish, and possibly UK-wide, proposals for minimum alcohol pricing could have on their exports, Bulgarian wine producers have persuaded their government to lodge objections with the European Commission.  This has resulted in the consultation period being extended until the end of the year.  Other countries that export substantial quantities of alcohol to the UK may well follow suit.  This recent money.co.uk article … Continue reading

Bulk wine shipping decimating South African packing industry – this calls for a trade war!

Reading this recent Decanter item – South Africa complaining that increased bulk shipping of wine is damaging its packaging industry – it struck me as fairly ludicrous to suggest that the response should be to embark on a trade war.  I’m not sure where they got that headline from anyway – if you read the article, all the SA Government spokesperson says is why not look … Continue reading

D&D Wines collapse – yet again unprotected wine suppliers lose out

It happened when Oddbins went under in 2011, and now it has happened again with the recent collapse of D&D Wines International into administration, leaving unsecured creditors, mostly for wine supplied, exceeding £10m.   Prospects of any significant recovery look slim, albeit that Liquidators have now been appointed to investigate how a company could go from a balance sheet of £2.2m (including cash of £3.8m) at the end of … Continue reading