NEWS
FRENCH WINE AND SPIRIT EXPORTS TO CHINA SLUMPED 15% IN 2020, TO HK FELL 6%, TO S'PORE DOWN 31%
By Siulan Law Mathews DipWSET
11-2-2021
Credit: Jim Harris/Unsplash
The value of French wine and spirit exports dropped 13.9 percent in 2020 to €12.1billion (USD14.7bn), exports to China to fell 15 percent, to Hong Kong dropped 6 percent while to Singapore fell 31 percent, according to the Federation of French Wines and Spirit Exporters (FEVS).
The organisation said USA tariffs and coronavirus restrictions that shut hospitality venues and travel retail outlets around the world are the main reasons for the double-digit drop.
Despite the sharp fall, the trade remains France's second biggest export after the aerospace industry.
The COVID-19 pandemic first reported in China on the eve of the Chinese New Year last year, strongly affecting consumption during the festive period and led to exports to China to fall 15 percent in 2020 to €809mn, said FEVS in a press release today.
Sales to other major Asian markets including Hong Kong and Singapore were equally affected, with Hong Kong dropping 6 percent and Singapore falling 31 percent, FEVS said.
Source: Federation of French Wines and Spirit Exporters
Overall turnover for the three markets dropped to €1.9 billion, representing a fall of 19.4 percent.
The trade tension between European Union and USA, which is FEVS’ biggest overseas market, was equally damaging compared to COVID-19.
The Trump administration imposed punitive duties on certain EU products, including wines from France, as a revenge over EU's subsidie to its aircraft industry.
Shipments to USA, which account for a quarter of all French wine and spirit exports, slumped 18 percent to €3.1bn in 2020.
“The situation in USA is probably the most concerning. The sanctions, which targeted our sector, for the last 16 months toughened up on 12 January, jeopardise the presence of French wines on the biggest world market," said FEVS Chairman César Giron who called on the European Commission to solve the issue with the Biden administration.
“In this extremely difficult environment, the French wine and spirits’ exporters found ways to preserve their positions and pave the way to the future and to the economic recovery that we all expect for 2021,” Giron said.
“In some countries, we already see some small improvements, especially during the last quarter of 2020. However, we still need to get in control of the pandemic to ensure a global recovery,” he added.
(the writer can be contacted at: info@thewinechronicle.com)
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