French wine sales plummet

[Matthias R WHT]

It looks as though the total French 2009 wine crop will be only 48
million hectolitres, 12% more than the very small 2008 crop, but 5%
smaller than the average crop for the past five years. This may be
just as well in view of shrinking sales of vin français.

Export demand for still French wine is at it is lowest since 2000,
according to official figures for the 12 months to June 2009. The
volume of exports to the EU is particularly low, at 2.8 million hl,
and sales to the UK have fallen by a massive 27% to 0.8 million hl.
The two other main EU destinations have also recorded a decrease in
exports, of 15% for Belgium-Luxembourg (0.76 million hl) and 21% for
Germany (0.54 million hl).

The under-performance of French wines in 2008/2009 is exacerbated by
the large volume of AOC wine exported during the years 2006/2007 and
2007/2008, which is believed to be stockpiled in the distribution
system.

France is faring badly in other key markets: the United States (-9%),
Japan (-16%) and Canada (-4%) although some exports destined for the
US now pass through Belgium and Luxembourg, which has distorted these
official figures.

The combined effect of reduced demand and low availability means that
prices are stable on the whole. Changes in volume and prices are very
similar to those of 2007/2008 for still vin de pays and champagne.
Compared with the average of the past five years, prices have not
decreased at the same rate as export volume, and the value of exports
is generally on the increase: prices continue to rise in countries
where exports have fallen, for example Canada (+1%). However, prices
have dropped elsewhere, notably in the United States (-11%) and Japan
(-10%).

Nor is there much cheer for French vignerons on the domestic market.
According to customs figures from May 2009 for the first 10 months of
the year 2008/2009, taxed consumption of French wine was the lowest
ever recorded - just 23.8 million hl. It is expected that total taxed
consumption of wine in France for the year will be no more than 30
million hl – 9% lower than the average for the past five years and 5%
lower than in 2007/2008.



Jancis Robinson. 14 Oct 2009.