Bordeaux wines harder hit on special offer

Wednesday September 25 2019 by Vitisphere

“In the regular range, Bordeaux comes under fire more for shelf exposure with a faster decline in demand. The drop in demand in the regular range is worsened by a fall that is much more marked than for the competition when on special offer”, commented the CIVB.“In the regular range, Bordeaux comes under fire more for shelf exposure with a faster decline in demand. The drop in demand in the regular range is worsened by a fall that is much more marked than for the competition when on special offer”, commented the CIVB. - Photo credit : Alexandre Abellan (Vitisphere)

In super and hypermarkets, the red Bordeaux appellation suffered limited losses in the regular ranges but extensive losses when on special offer”, summed up Guillaume Briot, economic researcher for the Bordeaux wine marketing council (CIVB), at the regional organisation of wine and spirit brokers’ AGM on 13 September at Château Magnol (Blanquefort). The economist's presentation was based on data from IRI distributor panels at the end of June 2019, reflecting a “greater deterioration than for the competition at all levels”.

In terms of annual moving totals, sales of red Bordeaux fell by 20% (-5.7 million litres), compared with -13% for red AOC Languedoc (-285,000 litres), -11% for red Corbières (-500,000 litres) and -10% for red AOC Côtes-du-Rhône (-2.4 million litres). When studied in detail, the decline for Bordeaux wines proves to be more significant when the wines are on special offer (-33%) than for regularly stocked wines (-14%). This is not the case for other appellations, including Côtes-du-Rhône: -10% on offer and -9% for the regular range.

€1 million for an extra 1 million bottles

A combination of the effects of the Food Law on special offers and a drop in consumption of red wines, this sharp decline proved to be a cause of concern for the Bordeaux firms as they discovered the figures. To regain control of the situation, the CIVB has launched a hard-hitting action plan for the second half of 2020 to boost its domestic sales (which account for 55% of total sales) in the short term. Using targeted discount vouchers from Catalina, a service provider covering 70% of supermarkets, the Bordeaux marketing board is investing €1 million to generate additional sales of 1 million bottles before and after the autumn wine festivals (from mid-June to the end of August and then mid-October to the end of December)

 

 

 

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