Chocolate fight ends with Spain and Italy found guilty, January 2003

In the month marking the 10th anniversary of the Single European Market, the European Court of Justice has decided that a Spanish and Italian ban on the sale of British chocolate is incompatible with free trade. In what should be the final act in a 30-year dispute, the judgement will allow UK chocolate manufacturers to sell their products freely in all EU Member States.

The long-running dispute has centred on the definition of 'chocolate'. Continental producers have long argued that the British version of the confectionery contains too much vegetable fat derived from non-cocoa sources and should therefore not be able to bear the name 'chocolate'. Not surprisingly, British manufacturers defended the composition of their products and their right to identify them as 'chocolate'.

Steps were taken to end the argument by introducing a new Directive 'relating to cocoa and chocolate products intended for human consumption'. Although it entered into force on 3 August 2000, it does not have to be implemented in Member States until 3 August 2003. The Directive allows 'Chocolate products which ... contain vegetable fats other than cocoa butter [to] be marketed in all of the Member States, provided that their labelling ... is supplemented by a conspicuous and clearly legible statement: "contains vegetable fats in addition to cocoa butter".'

Despite knowing they will have to introduce the new legislation, Spain and Italy stood their ground and refused to allow UK-style chocolate to be sold in their countries unless it was labelled as 'chocolate substitute'.

The European Commission - responsible for monitoring the implementation of EU law - decided to take the two Member States to court. In its judgement on 16 January, the European Court of Justice found that the use of vegetable fats other than cocoa butter (to a maximum of 5% total weight) 'does not alter the nature of the product'.

Dismissing the argument put forward by Spain and Italy that their ban was necessary to protect consumers, the ECJ decided that consumers could be made aware of the composition of UK-style chocolate products via an indication on the label (wrapper). The actions of Spain and Italy in requiring manufacturers to alter the names and packaging of their products were judged by the Court to be 'disproportionate' and to 'infringe the principle of the free movement of goods'.

Although the UK appears to have been the focus of the dispute with Spain, Italy and others - notably Belgium - it is not alone: manufacturers in Denmark, Finland, Ireland, Portugal and Sweden are all thought to be affected by the decision.

Although the BBC reported the Labour party's European Parliament spokesman Phillip Whitehead as saying 'this is what Europe should be doing - breaking down barriers to give British companies unfettered access to the biggest consumer market in the world', the Financial Times reported that, although pleased with the judgement, executives at UK manufacturer Cadbury 'concede that British chocolate does not appeal strongly to Continental tastes, and they do not expect sales to soar there.'

Links:

European Court of Justice:
	16.01.03:	Judgments in Cases C-12/00 and C-14/00, Commission v Spain and Italy [Press Release 03/03]
EUR-Lex:
	'Directive 2000/36/EC - of 23 June 2000 - relating to cocoa and chocolate products intended for human consumption' entered into force on 3 August that year and must be implemented in Member States by 3 August 2003.
BBC News Online:
	16.01.03:	UK firms win chocolate tussle
European Sources Online: Financial Times:
	17.01.03:	Sweet victory for British chocolate producers
European Sources Online:
	European Sources Online: In Focus: Directive 2000/36/EC of the European Parliament and of the Council of 23 June 2000 relating to cocoa and chocolate products intended for human consumption

Eric Davies
Researcher
Compiled: Friday, 17 January 2003

The European Court of Justice ruled on 16 January 2003 that a Spanish and Italian ban on the sale of British chocolate is incompatible with free trade. In what should be the final act in a 30-year dispute, the judgement will allow UK chocolate manufacturers to sell their products freely in all EU Member States.