Sales of Cognac plummet during coronavirus crisis

Wednesday May 27 2020 by Vitisphere

 “The [coronavirus] crisis will have an impact, and there is no reason why it should be any different to other crises: a drop in sales and then a rebound. What we don't know today is how long it will last”, said Patrice Pinet. “The [coronavirus] crisis will have an impact, and there is no reason why it should be any different to other crises: a drop in sales and then a rebound. What we don't know today is how long it will last”, said Patrice Pinet. - Photo credit : BNIC

In April 2020, shipments of AOC Cognac fell by 64% compared to April 2019 announced the Cognac marketing board (BNIC). Revealing the impact of the coronavirus on business in the Charente region of Western France, the board has warned that “the downward trend in shipments is expected to continue in the second quarter of 2020”.

But “it is important to note that shipments of finished products do not mean sales in the marketplace”, warned Patrice Pinet, chairman of the Cognac trade organisation SMC. As a negociant, Pinet claims it is not surprising that there was a clear slowdown in trade in April: companies were at a standstill, the American market overstocked as a preventative measure due to threats of tariffs and the Covid-19 pandemic spread across the globe.

With the Business Plan that dictates the growth of Cognac vineyards due to be reviewed at the end of the year, with the election of the new chairman at the BNIC, the Cognac industry is calling for caution. “Despite the extent of the crisis caused by the pandemic and this significant drop, the Cognac sector remains confident. It is bolstered by encouraging signs of consumption from China and Asia, by the resilience of the American market, particularly for VS standards, and by the robustness of its economic model. It is expecting there to be a rebound, but for the moment it is not possible to ascertain when and under what conditions this will occur”, stated the BNIC.

 

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