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Friday, 14 March 2014

Bordeaux Gets Chinese Hangover!

Sales of Bordeaux wine fell 1.4%  last year, with exports dropping by 6%!

Slide in sales to China blamed for lackluster performance.

Sales of Bordeaux wine fell 1.4 percent last year, with exports dropping by six percent as Chinese drinkers cut their purchases by nearly a fifth, the region's wine trade association has reported.

While the volume of wine from Bordeaux sold edged up 0.3 percent to the equivalent of 742 million bottles in 2013, by value it slipped 1.4 percent to 4.24 billion euros (US$5.9 billion), the Conseil Interprofessional du Vin de Bordeaux (CIVB) announced.

CIVB president Bernard Farges blamed the poor performance on "the slowdown in China which has experienced exponential growth since 2005."

Sales in China fell 16 percent by volume and 18 percent by value, representing a loss of about 60 million euros ($83.2m). China and Hong Kong together now represent around a quarter of all Bordeaux sales by volume and value.

A crackdown on corruption by China's new leadership has hit sales of Western luxury goods as lavish gifts were often used to curry favor with officials.

Domestic sales also fell, while in Europe sales were up five percent in volume but down five percent in value.

On the supply side, 2013 marks the start of a shortfall, compounded by a challenging growing season and small harvest.

“For 10 years, we had too much stock and just as we were starting to manage it we have had a small harvest,” lamented Farges.

He claimed that it would be a “rude shock for those without much stock” who would not be able to benefit from rising prices. In this context, the region’s bulk wine prices have risen 25 percent.

Source: http://www.wine-searcher.com/