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Wine: Burgundy resists thanks to a surprising sales boom in the United Kingdom

2020-11-24T01:09:51.355Z


In the first nine months of 2020, exports nevertheless declined by 3.9% in volume and 9.3% in value compared to last year.


Burgundy wine exports, which represent nearly half of sales, succeed in limiting the impact of Covid-19 thanks in particular to the surprising boom in the British market, AFP learned on Monday from the profession.

Burgundy is resisting thanks to an unprecedented top quartet.

Some good surprises (United Kingdom, Switzerland) compensate for the sudden fall of the USA, impacted by an unfair tax

”, notes in a press release the Interprofessional Bureau of Burgundy Wines (BIVB).

Read also: Small wine production expected this year

In the first nine months of 2020, exports fell 3.9% in volume and 9.3% in value compared to the equivalent period last year.

The decline is largely due to the 21% drop in volume (and 29% in revenue) in sales in the United States.

The leading external market for Burgundy wines is weighed down by the 25% customs surcharge on still wines below 14 degrees.

Sales in China and Hong Kong, whose share rose from 2% of exports in 2009 to 9% in 2019 (in value), also collapsed by 30.6% in volume (and nearly 17% in turnover).

Japan is doing a little better with a drop of 4.5% (-6.4% in value).

A "storage effect"

But the decline would have been much more severe without the astonishing rebound in the British market, the Bureau said.

Over the first nine months, this market thus grew by 11.6% in volume (+ 1.3% in turnover), even temporarily resuming its position as the leading external market for Burgundy wines in May and June, ahead of the United States.

The BIVB recalls that Brexit, still under negotiation, has not yet caused any new tariff barrier.

Professionals have already repeatedly mentioned a "

storage effect

" to explain this dynamism, importers preferring to buy now, before the possible application of more restrictive regulations.

Canada, the third largest export market, also offers a nice surprise, with an increase of 8% in volume (+ 7.7% in value).

Belgium, the fifth largest market, limited the decline (-1.8% in volume and even + 1.2% in value) while Sweden and Switzerland continued their 2019 growth at a good pace, with respectively +17.1 % and + 2.5% in volume (+ 9.7% and + 8.2% in value).

Read also: In the event of a hard Brexit, London will tax its imports very little

Burgundy wine exports ended the year 2019 with an increase of 9% in volume (89.8 million equivalent bottles of 75 cl) and of 10.4% in value compared to 2018, exceeding the symbolic bar billion euros in sales (1.039 billion euros).

Source: lefigaro

All business articles on 2020-11-24

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