The whole wine universe is suffering. With the global financial crisis, the situation is clear. All over, end clients are paying more attention to prices: buying lower-quality ranges, favouring promotions or distributors' brands, reduced visits and lower spending in restaurants etc. The strong euro, specifically against the dollar, is an additional constraint for exports from producer countries in the euro zone.
Over the 12 months of the campaign (to end July 2009) exports from Burgundy fell by 24.5% by volume and by value, with 79.3 million bottles for 528 million euros. Compared to the average of the last five years, the fall represents 16% by volume and 12% by value. This situation is closely linked to the weight of the UK and USA (1 out of every 2 bottles of Burgundy exported is destined for one of these two markets), both of which are feeling the full impact of the crisis, and which accounts for ¾ of the decline in exports from Burgundy.
In Asia, despite an average fall in sales of Burgundy wine of 20-30% on these markets (excluding Japan), it would appear that exports could return to similar rates of growth when the economy recovers. The only mature wine market in Asia, Japan remains a favourable destination for Burgundy, with exports remaining relatively stable, despite the economic backdrop. Other traditional markets such as Belgium, Germany and even Switzerland have more or less maintained their volumes of Burgundy wine imports over the first seven months of 2009.
The regional AOCs, which are more affordable, have suffered to a lesser extent from the crisis, particularly white wines, whose revenues have fallen by only 9%.
Burgundy wine exports are fairly well sustained by Crémant de Bourgogne, which has seen steady growth for the last 5 years. With over 4.5 million bottles sold, this appellation has sold well on various markets. (BIVB).