All about Beaujolais Nouveau - 20 Minutes

  • According to a survey by the Sopexa agency unveiled on Tuesday, carried out with 984 wine players worldwide, French wine is the one that has the best image.
  • But trade tensions with the United States, Brexit and the decline in growth in China are penalizing the export of French wine.
  • The main competitors are Italy in the United States, Chile in the United Kingdom and Australia in China.

"French production is distinguished by its finesse and diversity". This is how François Collache, commercial director of the Drinks pole of the Sopexa agency, concluded this Tuesday morning the presentation of his Wine Trade Monitor 2019 * . Conducted with a thousand wine players around the world, this survey shows the trends of the coming months for the sector in terms of sales.

By focusing on the seven major markets of the United States, the United Kingdom, Belgium, Germany, China, Hong Kong and Japan, it emerges that France remains a beacon in the wine world thanks to like him, the best in the world. But there are many threats to its exports.

Geopolitics makes winegrowers suffer

First destination of French wine in 2018 (18%), the United States could discover new aromas. Not because Donald Trump said he prefers American wines, but because trade tensions with France over the digital tax could lead to higher taxation of French wines. The Sopexa survey reveals that according to the actors across the Atlantic, the strongest growth in the coming months would go to Italian wines (+57% after the declarations of the American president) and to local productions (+40%).

Same problem, same consequence in the UK. With Brexit, the risk of seeing significant customs duties appear pushes industry professionals to look towards cheaper wines. Chile (+ 53% of forecast sales), Australia (+ 45%) and Argentina (+ 40%) are expected to fare well.

Described as the lung of French wine by François Collache, China should also see competition intensify. Passionate about Bordeaux, the population, who sees national growth slow down and the progression of their income with it, could turn to wines from the southern hemisphere. And in particular to Australia (+ 60%). Rob Devis, an Australian importer in the Middle Kingdom, explains this announced success: “Our two countries have concluded a trade agreement which exempts Australian wines from customs duties (against 14% for French wines). In addition, our fruity wines appeal to novices. "

Increasing competition

Australia does not compete with France only in China. Thanks to a national production supported by the State, it strongly develops its exports. "(Australian winegrowers) adapt their production to demand and according to their capacities in a remarkable way," says François Collache. Significant marketing work successfully accompanies their wine. Still according to the Sopexa survey, Australia ranks first among innovative nations (taste, packaging, etc.) in terms of wine. A notion to which France does not seem to respond, since our production does not even rank in the top five.

Second place in this ranking goes to Italy. The world's largest producer (54.8 million hectoliters in 2018, compared to 49.1 million hectoliters for France), the country benefits from a great diversity in its grape varieties. "Italian winemakers have made the winning choice of working with mid-range wines," says François Collache.

Same strategy for Chile. According to Sopexa, the Chilean wine "drinkable and affordable", enjoys great popularity throughout the American continent. In addition to being the big winner in Brexit, it should become increasingly established in China (+ 46%).

And if their volumes are not as large as those of previous competitors, other countries should be doing well. New Zealand, for example, aims to become the world's leading exporter of white wine and is particularly targeting China. In Germany, producers have launched a “Generation Riesling” program to reclaim the local market by targeting young people. Japan applies the same strategy and develops its local production.

Opposite movements

Besides this competition, other elements could hinder French wine. François Collache first quotes the other alcohols: “As in the United States, where the“ hard seltzers ”(flavored and alcoholic sparkling water) are starting to cannibalize the market among young people. He also cites the explosion of gin sales in the UK and adds: "Millennials are turning to many alternatives to wine. Especially non-alcoholic or “dealcoholized” drinks. "

In full "Dry January", the study also evokes abstinence movements, very present in Anglo-Saxon countries and in "certain regions of the world where religion does not encourage the consumption of alcohol. The salvation of French wine could then be found in a work of rejuvenation of its image, but also in the diversification towards "the medium range" of quality. A way not to lose ground.

* Survey of 984 wine market professionals (importers, wholesalers, distributors, members of the hotel and restaurant industry) in seven countries (United States, United Kingdom, Belgium, Germany, China, Hong Kong and Japan), from September 9 to October 25, 2019 .

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  • Wine
  • Economy
  • Australia
  • United States
  • China
  • Brexit
  • Gafa