The European Commission is set to conduct research into how beneficial geographical indications (GI) are.

The Commission confirmed yesterday (23 July) that it will offer a EUR300,000 (US$362,800) research contract to consider whether wine, spirits, beer and mineral water manufacturers whose products with geographical indications make less profits than those without.

Part of a review of the GI system, the study will take ten months after the tender is awarded, later this year.

The Commission’s tender documents note GI producers spend money on meeting “detailed requirements [for] production” that “often involves higher costs” generating higher prices than non-GI products.

“It is however not clear if producing a GI product results in a higher gross margin for the producers in comparison with producers of standard products…” said the Commission.