Are red wines with an ABV of 14% the key to “business as usual”?

Tuesday October 22 2019 by Vitisphere

 Are there ways of getting around the increase in U.S. taxes? The wine industry is working on it, but it is not that simple... Are there ways of getting around the increase in U.S. taxes? The wine industry is working on it, but it is not that simple...

This is an unfair and ludicrous tax. If this continues, we will all make sure our alcohol content is in excess of 14% ABV to avoid paying the 25% tax,” said foreign trade advisor and co-owner of Château Smith Haut-Lafitte (Pessac-Léognan) Florence Cathiard, following the United States' decision to increase taxes on wine.

Vianney Castan, the founding owner of Languedoc-based Joseph Castan, which exports 97% of its wines, has done just that: “We will focus on our top-end red wines, which contain more than 14% ABV. This is a constraint we are already faced with in markets like China, where demand is for high-alcohol reds”. At Domaine Lafage, in Pyrénées Orientales, Eliane Lafage is delighted that her red wines will be able to avoid the tax. “For once, the high alcohol content in our red wines is serving us well. We do not intend to change the style of our whites and rosés, though, but we will review our packaging to reduce our costs and thus mitigate the price increase”, she admitted.

“10% of our rosés are over 14% ABV”

Other firms are not limiting their efforts to red wines. “In recent weeks, I have been getting requests for wines with an ABV of over 14%. And this does not only apply to reds, it also applies to whites and rosés”, said Louis Servat, chairman of the Languedoc Roussillon wine brokerage organisation. At the Terre d'Expression winery in Fabrezan, director Benoît Fillaquier echoed his comments: “What is new this year is that some well-established firms in the American market are also looking for rosés with an ABV in excess of 14%. We got wind of this while we were still in the midst of harvesting and were able to produce wines with an ABV naturally higher than 14%, mostly from Grenache, but also some very ripe Syrah and Carignan. They now account for 10% of our rosés”.

 

 

LEAVE A COMMENT

Processing

COMMENTS

No comments yet.

© Vitisphere 2019 - Tout droit réservé