Slow-down for Burgundy wine exports

Tuesday June 16 2020 by Vitisphere

Burgundy wines posted a drop in exports over the first quarter of 2020, in a challenging economic environment, particularly due to the Trump taxBurgundy wines posted a drop in exports over the first quarter of 2020, in a challenging economic environment, particularly due to the Trump tax - Photo credit : J Cassagnes

Shipments of Burgundy wines over the first three months of the year were down 2.6% by value with revenue dropping 8.2% compared to the 1st quarter of 2019.

The USA suffered the most marked decline, with exports heavily impacted by the 25% ad valorem ‘Trump’ tax, which dealt a huge blow to the highest priced appellations in particular. Shipments plummeted by 11.6% in volume and, worse still, by 30.1% in value terms. The United Kingdom started to decline again after a good year in 2019, dropping 14.1% by volume and 13.4% by value. Japan posted substantial increases of 16.3% by volume and 20.4% by value, “which are likely not to last, however”, according to the Burgundy wine marketing board BIVB. Indeed, the second quarter of 2020 does not look very promising, considering the global health crisis: “We do not yet have the figures for April, but we certainly expect a sharp drop in exports”, said BIVB chairman Louis-Fabrice Latour.

 

 

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