Cognac is starting to tot up the cost of the coronavirus

Mardi 21 avril 2020 par Vitisphere

 Cognac is starting to feel the effects of the slowdown caused by the global Covid-19 epidemic in Asian markets.
Cognac is starting to feel the effects of the slowdown caused by the global Covid-19 epidemic in Asian markets. - crédit photo : BNIC

In what feels like the end of a cycle, the latest statistics from the international Cognac bureau BNIC reveal the initial impact of lockdown. Moving annual totals ending in March 2020 revealed that AOC Cognac sold 210.9 million bottles worth 3.47 billion euros. This represents a 3% increase in shipments compared to April 2018-March 2019. Growth is being fuelled by North America*, which has seen a 16% increase in imports of Cognac (to 105.1 million bottles and 1.56 billion euros), while sales have fallen by 8% in Asia** (55.9 million bottles and 1.17 billion euros) and in Europe (-8% to 36.6 million bottles and 445.1 million euros).

At the end of March, sales slowed in the Middle East and in Europe, but the trend was still positive for the United States”, summed up Patrice Pinet, chairman of the Cognac trade organisation SMC, who is expecting a slowdown in the United States: “Shipments in 2019 were higher than they should have been due to the risk of tariffs [in retaliation for the Airbus dispute], and there will be combined effects [due to the epidemic] in the coming months”. Faced with the prospects of a slowdown or decline in Cognac’s leading export market, Patrice Pinet warned “we must not overreact”.

 

* United States, Canada and Mexico.

** China, South Korea, Hong Kong, Japan, Malaysia, Singapore, Taiwan and Thailand.

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