Loadings of red PGI Pays d’Oc lose momentum

Tuesday March 17 2020 by Vitisphere

Sales of red Pays d'Oc wines have slowed compared with last yearSales of red Pays d'Oc wines have slowed compared with last year

Loadings of PGI Pays d’Oc have experienced a like-for-like drop of 17%. “The pace of marketing is more drawn out because inventory at the beginning of the campaign was 7.5 months of sales instead of the recommended 6 months, which leaves time for businesses to load”, commented trade body InterOc.

The end of the marketing season could be challenging

This is the first year where there are so many volumes still available in wineries at this time of year. There is still a very wide choice, across the quality spectrum, whereas usually by now, premium qualities have all been reserved”, noted Florian Ceschi, at international brokerage company Ciatti. A fellow broker from the Gard area of southern France, Bruno Crouzet, is worried: “The end of the marketing season could be challenging. There are still some Merlot, Cabernet-Sauvignon and Syrah wines that don’t have contracts. And for the past month, loadings have been very slow. Buyers, who have covered themselves with their contractual purchases, are waiting to see how the export market evolves, and France, before starting to buy again”.

High standards

The situation is more trouble-free for wineries that opted to enter into contract agreements: “All our crop is under contract, and for the moment, loadings are going well. For the reds, we have 5 to 10% of volumes left from the 2018 harvest and have started to ship some styles of wine from the 2019 vintage. But we can see that buyers are becoming more and more demanding. We need wines that comply with their specifications. There is no longer a market for secondary qualities”, said Olivier Plut, director of the Clochers et Terroir co-operative in Puilacher.

Prices at the beginning of the marketing campaign remained stable compared to last year: €85/hl for Merlot, €90 for Cabernet-Sauvignon. Now, some wines have started to trend downwards - there is Merlot available for €80/hl and Cabernet-Sauvignon for €85/hl. The coronavirus crisis will certainly offer no reassurance for the industry in light of these figures.

 

Sales of red Pays d'Oc wines have slowed compared with last year

 

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