EU Distillers Barred From Calling Spirits ‘Rye Whisky’ Due to Forgotten Trade Agreement

(Photo: POWERS Irish Whiskey)

Under the terms of a suddenly enforced decades-old trade agreement, distillers in the E.U. can no longer label their spirits as “rye whisky.” The move has provoked outrage from brands across the region, which have been using the verbiage for years.

The devil was in the details all along. Sometime last year, Polish, German and Czech agricultural authorities contacted the European Commission for clarification on an agreement signed in 2004. Pierre Bascou, director for sustainability and income support, wrote back that rye whisky was “indeed” a term protected in the legislation and could legally only be used by Canadian distillers.

Officials in Denmark began enforcing the rule in January. Stauning Whisky, the country’s largest distillery, was none too happy to hear the news.

“We are, of course, quite frustrated that a huge mistake has been made in the EU concluding this agreement. Rye, being a raw material used for whiskies in several different countries, should not be trademarked in the EU,” Alex Munch, CMO and co-founder of Stauning Whisky, said in a news release. “Protecting the use of the raw material is a bit like saying that outside of France you can’t use the word ‘grape’ or ‘wine’ in your product description.”

Stauning has been active since 2005 and, incidentally, recently won Best Single Cask Rye Whisky at the World Whiskies Awards. Drawing attention to the issue, the brand is now releasing a limited-edition bottle that replaces the word “rye” with “censored.”

The details of the agreement have drawn confusion on several fronts. For one, the definition of “Canadian Rye” within Canada is infamously lax. Unlike American rye whiskey, which requires a minimum of 51% rye in the mashbill, there is no legal requirement for grain types used in Canada. Though many distillers do in fact use a 100% rye mash in products labeled “Rye Whisky,” others are free to use a majority wheat or corn.

It’s also unclear how and if the rule would be enforced on other countries in the region. Brands like Oxford Rye and East London Whiskey have been using the label for years — however, both are located in England, which is technically no longer in the E.U. Meanwhile, it appears that a brand like Powers Irish Rye would fall under the agreement if local authorities chose to follow through.

Following the lead set by Denmark, Finnish authorities began enforcing the rule on April 1st. Kyrö Distillery, founded in 2012, called the move “outryegous” in a LinkedIn post.

“We wish this was an April Fool’s joke. It isn’t.” Kyrö Distillery wrote. “A trade deal the EU signed with Canada in 2003 gives Canada exclusive rights to the term — even if the whisky doesn’t contain rye. The agreement was suddenly enforced in the beginning of this year. We’ve been making 100% Finnish single malt rye since 2014. We can’t call our whisky single malt (since 2019) or rye whisky (as of now).”