|
|
 |
|
Viewing report
|
|
|
|
France Food and Drink Report Q3 2008
Business Monitor International, July 2008, Pages: 71
The France Food Drink Report provides independent forecasts and competitive intelligence on France's food and drink industry.
This newly-published Q308 French Food & Drink Report notes that the French wine industry is set to be among the most highly impacted by the European Union (EU) wine reforms now formally approved by the Council of the European Union. Although, sales of the best quality French wine have increased rapidly over the past few years, partly thanks to growing demand in emerging markets, France also produces a large amount of low quality table wine, which often struggles to find a market. This part of the industry may shrink significantly after the full package of reforms is implemented. 2007 was a record year for Burgundy and Champagne – two of the most highly prized and expensive French wines. According to the Bureau Interprofessional des Vins de Bourgogne (BIVB), exports of burgundy over the year increased by 14% in volume terms and generated a turnover of EUR718mn (US$1.1bn) – a rise of 21%. Meanwhile the Comité Interprofessionnel du Vin de Champagne (CIVC) reports that exports of champagne in 2007 were up by 7.3% on the previous year and set a new record.
These record sales figures were thanks growing demand for high quality French wine in emerging markets such as China and Russia along with sustained growth in more traditional markets such as the UK and Japan. However, so far in 2008 there are signs that this rate of growth may have slowed – a spokesman for BIVB reports that exports of burgundy slowed in March and April 2008 meanwhile the Union des Maisons de Champagne (UMC) reports that in the first quarter of 2008 sales of Champagne were flat compared to the same period in 2007. This is largely due to a slump in demand in the US and reflects how closely premium wine sales are tied to economic prosperity.
Despite this slowdown in 2008, the long term prospects for top-end French wine look very strong thanks to the growing demand for premium European food and drink products in emerging markets. However, at the bottom-end of the industry things look less rosy and the package of wine reforms agreed by the EU council is likely to lead to a significant decline in production.
The reforms mean that EU subsidies for wine producers will be phased out by 2012 and inefficient and uncompetitive producers will be encouraged to leave the industry via a three-year voluntary grubbing-up scheme that will pay producers to decrease their number of vines. France's Languedoc Roussillon wine region is likely to be among the worst hit by these reforms as it generates one of the lowest incomes per hectare in the EU. The wide scale destruction of vineyards, although economically sensible, is likely to be an emotive issue in France, as the countryside will be significantly altered. However, the reforms will also mean the scrapping of planting rights that restrict the planting of new vines. This could potentially lead to a massive increase in planting in popular regions such as Bordeaux and Burgundy, and production of high quality French wines could therefore increase significantly
Customers who bought this item also bought
France Food and Drink Report Q1 2009
World Market for Wine
Wine - Global Strategic Business Report
Snapshots France Wine 2009
France Food and Drink Report Q4 2009
Wine in France
France Food and Drink Report Q4 2008
Champagne en France - Analyse de Portefeuille Plimsoll
Champagne in France - Portfolio Analysis
Wine in Taiwan
Champagne Market: Exports Drive Buoyant Trend
Global Market Review of Champagne – Forecasts to 2012
|
|
|
|
