French wine exports fall due to problems in two regions

Experts warn: US supplies are decreasing

French wine exports fell by 9.4 percent in 2023. This is the lowest level in at least 17 years, with supplies from Champagne, Bordeaux and all other major regions declining. At the same time, it is noted that the supply of strong drinks such as cognac fell by 15 percent due to a drop in demand for grape brandy in the United States.

Exports of champagne and wine fell to 122.6 million cases in 2023 due to reduced supplies to the United States, the French Association of Wine and Spirits Exporters (FEV) said. Exports fell 3 percent in value as higher average bottle prices partially offset lower volumes.

After years of wine and spirits being France’s second-largest export after the aviation industry, it dropped to third place in 2023, behind perfumes and cosmetics. FEVs blame inflation and lower incomes on lower consumption, as well as inventory drawdowns by US importers following excess purchases in 2022.

“We are seeing a significant drop in volumes, this cannot be denied,” explains Antoine Leccia, chief executive of wine producer and trader AdVini. “We are not able to offset the volume effect with the price effect.”

Export volume to the US fell 13 percent, while value fell 7.8 percent to €2.14 billion. Shipments to the UK fell 5.2 percent, while the value of imports remained little changed at €1.46 billion.

The decline in US exports reflects an adjustment in inventory levels and does not mean consumption has fallen that much, FEV President Gabriel Piccard said. He notes that U.S. shipments could return to “more normal levels” in 2024 once excess inventories are cleared.

Champagne remained France’s most important wine export, accounting for 37 percent of export value.

According to the president of the Union of Champagne Producers, David Chatillon, the region is experiencing a “premiumization” effect, which is leading to higher export prices, as well as increased consumer demand for high-end bottles such as rosé Champagne.

As for the Bordeaux region, the entire entry-level segment is suffering, while the top end of the market is holding up better. According to FEV, the French wine industry needs to ask itself questions and take a fresh look at how wine is consumed because “a lot of changes are happening.”

France’s historic regions of Beaujolais and Languedoc-Roussillon recorded the largest declines in volumes among the major growth regions, with exports in both down around 16 percent. The Loire Valley bucked the trend, recording a 6 percent increase in export value.