NEWS
PRICE OF BORDEAUX BULK WINE DECLINED 40% DUE TO WOES IN HK AND USA
By Susan Lewis
27-11-2019
The average bulk price of 2018 Bordeaux red wine has dropped significantly to €900 per barrel compared to €1,500 of the 2017 vintage, uncertainties in major export markets including Hong Kong and USA are cited as main reasons for the decline.
Hong Kong, marred by social unrest in recent months, is Bordeaux wine’s most valuable export market, while USA, which recently slapped punitive tariffs on EU wines, is its major growth market.
French viticulture website Vitisphere quoted data from Conseil Interprofessionnel du Vin de Bordeaux (CIVB) dated 4 to 15 November as reporting that fewer than 40 contracts and 10,000 hectolitres (hl) were traded, and average traded price per barrel of 2018 Bordeaux red is just slightly in excess of €900.
It was also said that 75% of the volumes from the 2018 vintage change hands at between €700 and €1,000 per barrel, though no contract is below €700 a barrel, very few are traded at the 2017 average of €1,500.
“If it weren’t for a few remaining transactions of medal-winning or organically certified batches, the data would be much worse,” a Bordeaux broker was quoted as saying.
Worse still, domestic supermarket sales is also in decline as confirmed by performance of in-store wine festivals this Autumn, Vitishpere said.
Hong Kong is the leading market by value for Bordeaux wines, the city imported 77,000hl of Bordeaux wines last year worth €327 million.
The USA is an important growth market for Bordeaux producers, the country imported 199,000hl worth €279 million last year, representing an increase of 21% by value over the year before.
(the writer can be contacted at: info@thewinechronicle.com)
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