French coopers sustain revenues

Friday October 09 2020 by Vitisphere

 In value terms, the popularity of large format barrels has led to growth of 8.6% in the domestic market and 2.7% elsewhere. In value terms, the popularity of large format barrels has led to growth of 8.6% in the domestic market and 2.7% elsewhere. - Photo credit : FFT

In 2019, the 58 members of the French cooperage federation sold 658,000 units generating turnover of €494.4 million. “We had feared the year would be challenging, mainly because of the fires in California and then Australia, but results in Europe compensated for the downturn in these two markets”, comments federation chairman Jean-Luc Sylvain.

A buoyant market for Cognac, where sales of new barrels in France increased by 4.9%, offset the 2.2% drop posted by the cooperage industry in export markets, where it sells 65% of volumes.

France continues to spearhead the top 5 markets (35% by volume, 32% by value), closely followed by the United States (28% by volume, 30% by value), with Spain following at a distance (8% by volume, 7% by value), then Australia and Italy (6% by volume, 6% by value, in the two countries)”, the Federation said.

The industry is hopeful that this stability will continue into 2020. “On the other hand, we are much more worried about 2021. Many of our customers will face cash flow difficulties due to plummeting sales. It is unlikely that they will be able to place the same orders with us”, concludes Sylvain.

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