Covid puts a dent in revenues of French wine exports

Friday December 18 2020 by Vitisphere

 In a globally competitive wine market, the value of French wines suffered far more than the average. In a globally competitive wine market, the value of French wines suffered far more than the average. - Photo credit : Hillebrand

The Covid pandemic has wrought havoc on French wine exports. From January to September 2020, France exported 9.8 million hectolitres of wine worth 5.9 billion euros according to the latest data compiled by Business France (see graphics below). The data translated to a drop of 7.5% in volume and 17% in value compared to 2019. With revenues falling twice as much as volumes, the average price of a litre of wine exported by France was down 10%, falling to €6 per litre.

Whilst global wine imports fell by 10% in value from January to August, French wines underperformed with more significant declines, reflecting increased exposure to the current economic situation. As the health crisis reined in household spending around the world, the decline in value exports for French wines can also be ascribed to frequent closures in on-premise outlets.

Premium wines and spirits are being hit hard by the health crisis, with declines of 28% in value for Champagne, -24% for Bordeaux, -8% for Burgundy and -28% for Cognac...” said Adrien Boussard, wine and spirits specialist at Business France.

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