France gives “Green Light” for the revival of Absinthe aka The Green Fairy

Absinthe, the drink credited with inspiring artists and poets from Vincent van Gogh to Arthur Rimbaud, looks ready to return to its spiritual home after French lawmakers reversed the country’s 100 yr old ban against the drink known as the “Green Fairy”.

Assuming the repeal of the ban, first enacted in Y 1915, is promulgated next month by Nicolas Sarkozy, France’s teetotaling President, producers of the spirit expect a boom in sales.

Reason to celebrate: revivalists say the market could be worth up to US$1B in 5 yrs
George Rowley, managing director of British manufacturer La Fée, believes the currently market could reach US$500M-1B within 5 yrs. “Never before have we had a category that exists with so much intriguing and evocative history, which has been a key ingredient in many cocktails from 100 yrs ago,” says Mr. Rowley, a Lloyds broker turned Absinthe revivalist.

“At the height, makers were producing 220M liters a year to supply the Blobal market, and that was at a time, around Y’s 1905-1912, when the Global population was much smaller than it is today,” he says. “That whole market is just waiting to be opened up again.”

Today’s market is a paltry US$30-40M a year, but growing rapidly as countries around the Globe lift bans that were imposed partly as a result of temperance movements, and partly following lobbying by rival alcoholic drinks makers.

The outbreak of the WW I, and the need for workers to back the War effort played a part in the drink’s banning.

The French move to lift the ban followed a Y 2009 bid by Switzerland to earmark Absinthe as a regional product under the European geographical protection scheme, which covers products such as Parma Ham and Roquefort Cheese.

Absinthe’s historic home, argued the French, is Pontarlier, a town within a few kilometres of the Swiss border. Opposition to the Swiss move spurred the legal partial rehabilitation of the drink.

Absinthe was vilified, and romanticized, for its potency and supposed hallucinogenic qualities, acquiring the same order of notoriety as Gin, or Mother’s Ruin, in the UK.

It is cited as the prime influence behind Van Gogh’s painting ‘Starry Nights’.

But even today, the drink stirs conflicting emotions, and outright opposition. Thujone, a chemical side product of the essence of Wormwood herb used to flavor Absinthe, and sometimes blamed for its alleged mind-bending properties, is a controlled substance under European regulations, though it is only found in the drink in minute traces, far less than occurs in Sage stuffing.

Changes to European regulations in Y 1988 helped re-establish Absinthe by limiting thujone’s content, and capping its content at 72% alcohol by volume.

For comparison, much of the Vodka currently on commercial sale is about 40%, but producers were still constrained by rules limiting the use of the term Absinthe. Producers have navigated the legal loopholes to make the “Green Fairy”, so-called because of the visual effect of Absinthe reacting with water, available once more.

In Y 2000 La Fée became the 1st brand to distil in France since the drink’s banishment, working together with the curator at France’s Musée de L’Absinthe. The Company availed itself of a “Waiver” that allows production for export purposes.

It also sells in France, using the approved Spiritueux aux plantes d’Absinthe terminology on its labels, but with identical spirit content.

Pernod Ricard (PK:PERDY), the French drinks group, re-launched its Pernod aux extraits de plantes d’Absinthe in Y 2001, and says sales in Key markets are growing 20% annually.

Its biggest market is the US, which Pernod reports accounts for 50% of all sales Globally.

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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Posted by Shayne Heffernan on Apr 23rd, 2011and filed underEquities, Europe, Latest News, Markets.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site