VIVE le COME BACK!

TIMES
HAVE BEEN TOUGH
lately in the French wine business but things may be on the
upturn. After years of watching foreign taste buds respond
to innovative New World wines, French wine and spirit makers
appear to be making their way back into the global market.
Exports in the first half of the year rose 7.5 percent to
4.16 billion euros ($5.62 billion), France’s export
federation said in August. The Federation of Wine and Spirit
Exporters France, or FEVS, said Champagne and Cognac sales
led the increase. Wine sales showed more modest growth,
which reflected expansion in the global wine market.
Philippe Casteja, the federation’s president, said the
industry should not rely on Champagne, the drink of choice
for celebrations around the world, to prop up sales.
“Spirits and Champagne remain two undeniable locomotives for
our results,” he said in a statement. “This bright spot
should not make us forget the need to pursue the necessary
reforms” in order “to rediscover a durable competitiveness
on all market segments of still wines.” Champagne exports
rose 13.1 percent to 9O4 million euros ($1.2 billion).
Spirit export sales rose 9.1 percent thanks to a 23 percent
increase in Cognac sales. Still wine exports rose 4.1
percent to 1.94 billion euros ($2.62 billion), with mixed
results from region to region. Burgundy wines charted a 2O.9
percent increase while Bordeaux wines saw a 2.4 percent
drop. French wines are regaining market share in the global
market, Casteja said, noting that sales in the US are
increasing. He said he expected exports for the full year to
be “good” with an increase comparable to the first half.
However, he did say that it was too early to tell how
adverse weather conditions in Europe this year would affect
the harvest. Over the last decade, the French wine industry
has seen declining consumption at home, coupled with
dwindling demand for French wine abroad. Wines from
countries such as Australia, Chile and the US outpaced
French exports for the first time in 2OO3. Sales in France –
which still accont for about two-thirds of national wine
production – have been hurt by anti-alcohol campaigns and
tougher drunk driving laws. Chronic overproduction has
compounded the problem, sending surplus wine to the
distillery to be boiled down to pure alcohol. In 2OO5,
quality wines joined the ranks of cheap table wines that are
distilled. The EU’s top agricultural official suggested
digging up unprofitable vineyards last month and ending
subsidies for the distillation of unsellable wine. EU Farm
Commissioner Mariann Fischer Boel also wants to simplify and
streamline the system of geographical origins to make
European wines more attractive to consumers. Under the
current system, wines are labeled according to small regions
of origin, or terroir. New World wines rely more on
production methods for their reputation. They are also more
likely to be categorized by their grape variety or blends
rather than by region. French vintners – and the powerful
lobbies that represent them in the European and national
parliaments – are fighting proposed EU changes, claiming
they would discard centuries of tradition in favor of New
World technique. What’s really impressive is that, in the
face of all this, sales are again rising. You have to hand
it to the French, when it comes to wine and Cognac, they are
nothing if not determined.