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Bourgogne wines continue to show dynamic growth (videos)

18/11/2019

Bourgogne wines are selling well!

The record harvest in 2018 meant the dynamic that began the previous year has been maintained, while at the same time allowing stocks with producers to be replenished. The restraint in terms of pricing had a definite effect on the domestic market, which remains buoyant for Bourgogne wines despite a backdrop of falling consumption of AOC wines in France.
On the export market, North America confirmed its place as the leading destination, with sustained activity.

 

  • Wine leaving estates reached record levels, driven by Crémant de Bourgogne and white wines. There was also an increase in stocks held on estates.
  • During the first eight months of 2019, exports continued their strong performance both by volume and in terms of revenue, but a drop in sales to the USA is anticipated now 25% levy has been imposed.
  • Bourgogne wines defended their position well on the domestic supermarket circuits, at a time when wine consumption in France is undergoing profound change, with a shift away from this circuit and a sharp drop in red wine sales.
  • The 2019 harvest, estimated at 1.2 million hectoliters, will have limited impact on the market. This top-quality comes at a time when companies have decent stock levels thanks to the 2018 vintage. Chablis producers have been able to reserve some volume under the Volume Compensatoire Individuel scheme (VCI). The rest of the Bourgogne winegrowing region – with the exception of the Mâconnais, which was down 40% on average – will have sufficient stock to meet customer demand.

Watch as Gilles de Larouzière presents the Bourgogne wines economincal situation during the Bourgogne wines press conference, on 17 Nov. 2019, right before the Hospices de Beaune wine Auction:

 

Louis-Fabrice Latour also gave more information on the US Market:

 

Export: The powerful dynamic continues in 2019, despite clouds looming

* Exports of Bourgogne wines were up 6.9% by volume and 9.3% in terms of revenue (first eight months of 2019 over the same period in 2018).
* In terms of revenue, Bourgogne wines set a new record, reaching 650 million euros (first eight months of 2019)

As in 2018, the first eight months revenue broke down as follows: 50% for white wines, 46% for red wines (+ rosé), and 4% for Crémant de Bourgogne. Taking account of the production of Bourgogne wines, this spread reveals a strong appetite among external markets for Village, Village Premier Cru and Grand Cru wines (excluding Chablis). This group of appellations accounted for 47% of export revenue and 18% of volumes sold abroad.
Chablis, across the whole range, returned to more normal export levels, accounting for 16% of revenues and 23% of volumes, after several years of low production due to frost.
Régionale Bourgogne appellations (all colors) were mainly up, accounting for 37% of volume sales for 28% of the revenue.
Only the Régionale Mâcon AOCs were stable between 2018 and 2019 (8 first months). They accounted for 13.2% of exports by volume and 5.2% in terms of revenue.

The growth in terms of volume came from the USA (up 6.1%), the leading export market; from Canada (up 5.5%); and from a resurgence in Belgium (up 11.4%). China confirmed its place in the top 10, with a hike of 40.2% by volume. Hong Kong retained its special place as a high-value market, accounting for 1.4% of exports by volume, but for 6.6% in terms of revenue, putting it in fourth place by value.

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