Wine Industry Report

After having fallen sharply between March 2003 and July 2005, the cumulative total for exports of Bordeaux wines recovered perceptibly during the last six months of 2005. As a result, Bordeaux wines saw their downturn decrease significantly in 2005 and their exports in volume now total 1,717 million hectolitres (-3%) for a value of 1,032 billion Euros (-4%).

Bordeaux wines are still experiencing difficulties in some countries of the European Union, but are sustained by the very good performance from Belgium.

Belgium, the leading market in volume for Bordeaux wines, showed a sharp recovery with 349,000 hectolitres (+2%), ensuring this country its role as leader in terms of volume for exports. Its neighbour, Luxembourg, has a buoyant market (+12% for 15,100 hectolitres).

In the United Kingdom (-17% for 208,000 hectolitres) and Germany (-8% for 316,000 hectolitres), Bordeaux wines register a significant slump.

Denmark and the Netherlands are also on the downturn with, respectively, -8% for 80,000 hectolitres and -6% for 102 000 hectolitres; likewise for Ireland, registering a decrease of 22% with 13 400 hectolitres.

On the other hand, there is an excellent increase of exports to Italy: +26% for 9,600 hectolitres.

Outside the European Union, recovery is more clearly perceptible, boosted notably by the good performance of the North American continent.

The United States America show an increase of 13% in volume for 127,000 hectolitres, leading this country to follow close behind the United Kingdom for its position as leader in value. Canada also appears to be on the upturn (+12% for 72,000 hectolitres).

The Asian zone is performing better in the short term, like Japan, for example, whose cumulative total amounts to 130,500 hectolitres (-1%). The very distinct increase of Japan in the last quarter of 2005 (+25% compared with 2004) is in fact found in other markets of this zone. But this recent increase does not yet enable the gaps of the past twelve months to be erased, standing at -5% in South Korea (18,200 hectolitres) and -7% in Taiwan at (15,100 hectolitres). Hong Kong has moved back into positive figures again (+5% for 16,700 hectolitres), whilst China remains on the upturn (+56% for 11 500 hectolitres).

Lastly, we observe a variable situation in non-European Community countries.
Whereas Switzerland is still on the downturn (-9% for 71,000 hectolitres), Russia provides favourable results (+12% for 23,600 hectolitres).