French Wine Exports Slump

[Craig Camp]

FRANCE: Wine hit by new export slump

20 Jun 2003

Source: Stuart Todd

On the eve of the Vinexpo wine fair in Bordeaux, figures show that French wines are faced once again with an export slump.

In March, French wine exports fell 11 % in volume and 3.8 % in value  (excluding sparkling wines). AOC wines were badly affected - down 19 % in volume and 2.6 % in value.

France's wine and spirits export federation, FEVS, said initial feedback showed that the trend had not been reversed in April and May.

Figures for the first quarter of 2003 show a more stable picture with global wine exports, including sparkling wines, reaching €1.23 billion (+ 0.1 %). A closer look, however, reveals important disparities. Burgundy wines suffered a 25.5% dip in turnover while across all other still wine producing areas turnover was down by between 9.5% and almost 19%.

Bordeaux wines increased their turnover by 14 % but this was due to a two-year delay by Customs in posting sales of 2000 vintage primeur des crus.

Champagne sales rose 9.4%to €262m.

The only glimmer of hope came from exports to the UK, the leading market for French wines in value terms, with first quarter sales up 8.4 %.

from www.JustDrinks.com

[MatthewB]

Craig,

Any idea what's occurring with Rhones? My friends in the wine industry are saying that *all* French wine sales are down.

Can Rhones go even lower in price?

[guajolote]

I wonder how much of this downturn is currency related? The Euro is up about 20% vs. USD in the last year.

Edited June 23, 2003 by guajolote (log)

[Craig Camp]

Craig,

Any idea what's occurring with Rhones?  My friends in the wine industry are saying that *all* French wine sales are down.

Can Rhones go even lower in price?

I have been seeing all types of bargains in good Cotes du Rhone, Cotes du Rhone Villages and other less 'elite' Rhone wines. These have to be among the best bargains in the shops now with many now under $15.00. They blow away what California offers in the price category. With the market as it is now bigger names cannot be far from the same fate.

[Craig Camp]

I wonder how much of this downturn is currency related? The Euro is up about 20% vs. USD  in the last year.

The currency is a big factor as is the boycott. However the bargains you see now are from inventories that have been backing up with importers, distributors and wholesalers for the last several years. These wines they are now selling at reduced prices they bought when the dollar was strong - that is why they are so cheap.

[MatthewB]

I have been seeing all types of bargains in good Cotes du Rhone, Cotes du Rhone Villages and other less 'elite' Rhone wines. These have to be among the best bargains in the shops now with many now under $15.00. They blow away what California offers in the price category. With the market as it is now bigger names cannot be far from the same fate.

Interestingly, one of the distributors here tried to raise the price on a Pic St. Loup that received a high score in Wine Spectator. (It was at about $12 & went to $19.)

They had to drop the price within 2 weeks as it wasn't selling.

[Craig Camp]

I have been seeing all types of bargains in good Cotes du Rhone, Cotes du Rhone Villages and other less 'elite' Rhone wines. These have to be among the best bargains in the shops now with many now under $15.00. They blow away what California offers in the price category. With the market as it is now bigger names cannot be far from the same fate.

Interestingly, one of the distributors here tried to raise the price on a Pic St. Loup that received a high score in Wine Spectator. (It was at about $12 & went to $19.)

They had to drop the price within 2 weeks as it wasn't selling.

That's because everyone is too busy drinking crappy merlot and shiraz to notice lovely wines like that. Too bad for the producer, but good for wine drinkers who know the difference.

[MatthewB]

I'm currently picking up 2001 Sancerre marked down to $12.50 retail.

I'm not complaining.

[Rebel Rose]

From 1993 . . .