Statement

The Association of Producers of Pisco A.G., (APP A.G.) communicates its position regarding the report «What hides alcohol» of the program «Esto No Name» of Televisión Nacional de Chile, issued on 19.03.12, media, which in our opinion, developed a biased hypothesis and journalistic investigation on the sale and consumption of alcoholic beverages in the country , which ultimately covered only a few distillates, especially the Pisco.

The report states that the liquor market, including the producers of pisco, opposes the amendments to Law 19.925, on advertising and labeling by accusing us of a supposed «lobby» or pressure exerted on the deputies and senators of the republic, to stop the approval of the project.

As APP A.G., we categorically refute these statements, because we have always publicly expressed our opinion, regarding any amendments to the aforementioned law, through a written statement delivered, to executive and legislative authorities, deputies and senators of the republic, dated June 30, 2011, and subsequently sent to the media, including TVN Red Coquimbo , and to the public on July 02, 2011, documents available in www.piscochile.cl. The senators of the Coquimbo region, Jorge Pizarro and Gonzalo Uriarte referred to in the report, like the rest of the parliamentarians of the III and IV regions, have always had a transparent and permanent dialogue with our guild, and have been willing to listen to our views and demands, both in the draft law indicated, and in other matters related to the development of pisquera agribusiness.

As a guild, in the time, we support the suggested changes in label labeling and advertising with recommendations that allow «consumer education» as raised by the World Health Organization, and by expressing our readiness to participate actively, in the programmes indicated by the SENDA Strategy (ex CONACE) 2011-2014, because we consider information and education to be the key elements of the policy , to reduce the «harmful use of alcohol».

Regarding the complaint to our associate, the Capel Cooperative, on the actual grade of a product, we emphasize that Law No. 18.455 is the one that outlines the rules on the production, preparation and marketing of alcoholic beverages in Chile and delivers its audit to the action of the Agricultural and Livestock Service, the body that is the only competent to address the complaint made by the report referred to , and not the Ministry of Health that instructed an analysis. Taking early conclusions about the graduation and composition of sugars, fats and calories from products, and making them public without the participation of SAG, seems to us, at least, precipitated and harmful to the image of agribusiness to think in general.

The report makes inaccurate judgments, for example, noting that «Chile is the fourth consumer of alcohol in the world», information that does not match what is noted in the report «World Health Statistics delivered by WHO in 2010», on alcohol consumption among adults aged 15 and over (liters of pure alcohol per person), which indicate that «Chile ranks 61th in the world rankings , with a consumption of 6.8 litres of pure alcohol per capita.»

In this regard, TVN’s editorial line emphasizes pluralism and objectivity, which must be expressed throughout its programming and, in particular, in newscasts, analysis programmes or political debate. One of its objectives states that it should stimulate critical and analytical thinking, encouraging the processing of information that highlights the complexity of the facts and presents the various views and their ethical implications. Various views, which were not included in the report by the journalistic team of «This Has no Name», which in our opinion, omitted relevant information, not verifying all the sources of the news, before making them known, because as APP A.G., we were never requested by TVN, to deliver our opinion, through an interview or communication.

Association of Producers of Pisco A.G.

La Serena, March 2013