Pandemic, tariffs sap the spirit out of French wine gross sales overseas

Pandemic, tariffs sap the spirit out of French wine gross sales overseas

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U.S. tariffs and coronavirus restrictions that shut eating places, bars and airport duty-free shops in lots of international locations wiped 13.9% off the revenues of French wine and spirits exporters final 12 months, business group FEVS mentioned.

Gross sales overseas of wines and spirits – France‘s second-biggest export after the aerospace business – fell by 2 billion euros to 12.1 billion euros ($14.7 billion), the Federation of French Wines and Spirit Exporters (FEVS) mentioned on Thursday.

“We count on exercise to select up (in 2021),” FEVS deputy-chairman Antoine Leccia advised a information convention. “There may be some gentle on the finish of the tunnel with the vaccination marketing campaign.”

Shipments to america, the most important abroad marketplace for French wines and spirits and one which represents 1 / 4 of all such exports, slumped 18%, or 670 million euros, to three.1 billion euros in 2020.

French wine and spirits exports had jumped in 2019 as exporters booked gross sales forward of the imposition of U.S. tariffs.

The U.S. authorities imposed further duties on sure European Union merchandise, together with wines from France, as a part of a 17-year battle over plane subsidies between Washington and the EU.

“The U.S. market stays the image of a 12 months marked by commerce tensions and the COVID-19 epidemic,” FEVS mentioned. It added that discovering an answer to the battle was pressing.

In 2021, French nonetheless wine exports – excluding spirits corresponding to Cognac – to america had been prone to fall 1.1 billion euros, FEVS chairman Cesar Giron forecast.

The worldwide pandemic broke out in China on the eve of the Chinese language New 12 months, hitting consumption throughout the festive interval and inflicting exports to China to fall 15%. Gross sales to Singapore and Hong Kong fell 31% and 6% respectively, FEVS mentioned.

An increase in consumption at dwelling solely partly compensated for the closure of bars, eating places and airport outlets, it mentioned.

International exports of champagne and cognac, by far the most important wine and spirits exports, each misplaced greater than 20% in gross sales final 12 months.

FEVS mentioned it hoped for a greater 2021, supplied the pandemic eased, with some constructive indicators in some international locations within the final quarter of 2020.

(REUTERS)

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