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France suffers record Champagne and Cognac declines
Exports of Champagne and Cognac suffered a record drop last year as key markets in the UK and US switched to cheaper drinks in the wake of recession.
Exports of wine and spirits from France fell 17% to €7.74 billion last year, according to latest figures from the Federation of French Wine and Spirits Exporters.
The result marks the biggest-ever drop over 12 months and the first annual decline since 2004 for the world’s biggest wine and spirits exporter.
Unsurprisingly, Champagne and Cognac saw the biggest declines. According to the Federation, exports of Champagne fell 28% to €1.6bn, representing a 22% volume decline to 8.87 million 12-bottle cases.
Cognac sales also suffered heavily from the impact of recession, slipping 15.6% to €1.4bn last year.
The US market was heaviest-hit, with imports of French wine and sprits falling 22.7% over the last year to €1.34bn, while sales fell 20.2% in Britain, the second-biggest market for French exports worldwide.
Claude de Jouvencel, president of the federation, blamed down-trading among consumers as the primary reason for the declines, saying: “Falling global demand and consumers’ switching to entry-level brands weighed on our results last year.”
However, De Jouvencel believes 2010 could hold brighter prospects for the country, which today saw its wine sales in the UK overtaken by South Africa for the first time.
"2010 will not be as bad as 2009 and could return to slight growth, 5 percent at best,” he said.
"In all markets, we see a disaffection of consumers, linked to the lack of purchasing power and confidence in the economy.”
He said people "are going out less to bars, restaurants, hotels and cafes, and are consuming at home," while preferring to purchase mid-range wines at supermarkets as opposed to top-end products.
One slight anomaly in the results saw French vodka rise 13.7% to €238m last year, driven almost exclusively by US demand for Bacardi’s Grey Goose. The US accounts for 70% of French vodka exports.
Alan Lodge, 22.02.2010